Discovering Northampton: Part 11

 

Northampton’s rental market presents fascinating insights for both tenants and landlords, particularly when focusing on the average rental price per square foot. This metric, seldom talked about, offers a valuable perspective on how different areas of Northampton command varying rental values. For tenants, understanding the price per square foot is essential for making informed decisions on where to rent, particularly when balancing location, size, and budget. For Northampton landlords, this information is vital for setting competitive rental prices, ensuring your Northampton property is priced in line with market expectations and optimising yield.

Interestingly, there is a close (ish) correlation between areas with higher rental values per square foot and the house prices achieved in those same locations. 

However, this is not a perfect relationship. Smaller Northampton properties, for instance, often exhibit a higher rental per square foot compared to larger homes house prices. This nuance can provide intriguing opportunities for landlords seeking to maximise rental income by investing in smaller properties with a higher yield potential.

The variation in prices across Northampton highlights the diversity of the rental market, appealing to a wide range of tenants from different backgrounds and financial capacities. 

For those considering a move or investment in Northampton, how will these insights into rental prices per square foot influence your next steps?

 

What the Renters’ Rights Bill Means for Northampton Landlords

 

The Renters’ Rights Bill, recently announced by the Labour Government, introduces sweeping changes to the private rental sector in England. The Bill is not law yet as it needs to pass through parliament, still many landlords may feel apprehensive about these reforms. Yet it’s important to note that much of what the Bill introduces was going to introduced by the Tory’s earlier in the year (yet they ran out of time before the General Election). It has been discussed in detail over the past few months in my articles on the Northampton property market.

Let’s explore the key points that Northampton landlords should be aware of and how they impact the sector.

 

Abolition of Section 21 ‘No-Fault’ Evictions

One of the central elements of the Renters’ Rights Bill is the abolition of Section 21 evictions, which have long allowed landlords to terminate a tenancy without providing a reason. This will be replaced with a system that only permits evictions under certain conditions, such as rent arrears or the landlord wishing to sell the property. While this may initially seem restrictive, it has been on the horizon for a while, and we’ve discussed the limited potential impact in previous articles.

With this change, Northampton landlords will need to follow stricter legal grounds for eviction, ensuring that tenants are not unfairly displaced. Importantly, Northampton landlords will still be able to regain possession of their properties if they meet the new grounds, such as the need to sell or move into the property themselves.

 

Rent Increases and Bidding Wars

Rent control mechanisms in the Bill aim to standardise rent increases across the board. Landlords will only be able to raise rents once per year, and tenants will be empowered to challenge excessive increases at a tribunal. The goal here is to prevent unfair rent hikes being used as a backdoor eviction tool. However, Northampton landlords will still be free to increase rent in line with market rates.

Another significant change is the prohibition of bidding wars. In recent years, some landlords have used the housing crisis to encourage tenants to bid higher than the advertised rent. Under the Renters’ Rights Bill, this practice will be outlawed. Letting agents and landlords must now publish a clear asking price for a rental property and cannot accept bids above this rate. While this change may seem drastic, we’ve anticipated it in previous discussions about maintaining transparency and fairness in the market.

 

Decent Homes Standard and Awaab’s Law

The introduction of the Decent Homes Standard to the private rental sector aims to ensure that all privately rented properties meet minimum safety and quality standards. Northampton Landlords will need to comply with these standards or face penalties. This is an expansion of the existing standards applied to social housing, ensuring that tenants in the private sector are entitled to the same level of safety and decency in their homes.

Awaab’s Law, named after the tragic case of a child who died from exposure to mould in social housing, will also be extended to the private sector. This places a legal requirement on landlords to address serious health hazards, such as damp and mould, within a specified time frame. While this might seem like a significant regulatory burden, many Northampton landlords already maintain high standards, and those who do should find compliance relatively straightforward.

 

Renting with Pets

Another headline from the Renters’ Rights Bill is the enhanced ability for tenants to keep pets. Landlords will no longer be able to refuse pet requests without reasonable grounds. However, to address concerns about potential damage, landlords can now require pet insurance to cover any issues. We’ve touched on this topic before, and it’s no surprise that pet ownership is becoming a more pressing issue for tenants. With insurance in place, this change can benefit both parties.

 

Strengthened Local Authority Powers

Local councils will be granted additional powers to enforce the rules laid out in the Bill. This includes the ability to levy fines of up to £7,000 for initial breaches, escalating to £40,000 for repeat offences. While these new enforcement powers may appear daunting, they are largely targeted at rogue landlords, and those who already comply with existing regulations will likely not be affected.

 

Still have Questions?

As your trusted property agent in Northampton, I understand that these new regulations could feel overwhelming, but much of it has already been signalled in earlier discussions. If you have any concerns about how the Renters’ Rights Bill will affect you as a Northampton landlord, particularly considering the recent changes, feel free to reach out to me on 01604 801 962 let’s work through any worries together and ensure that you remain compliant while continuing to offer great service to your tenants.

If you would like a copy of the full Bill, please do DM me for a link.

Together, we can make sure that your property investments continue to thrive under this new legal landscape.

The Resurgence of the Northampton Terraced House: Or Has it Ever Been Out of Fashion?

 

The terraced house, once considered a relic of the past, is making a notable comeback. But one might wonder - did it ever truly go out of fashion? The simple, unassuming two-up two-down, a hallmark of Victorian red brick Britain, is now being rediscovered by modern Northampton buyers looking for more than just a place to live. They want a home, a slice of history, and the benefits of ownership that many newer properties simply don't provide.

While the allure of the sleek modern flat may have dominated recent decades, the terraced house is proving to be a surprisingly attractive option for many - particularly for first-time buyers. According to recent research by Zoopla, terraced houses, in particular two-bedroom terraced homes, are currently the fastest-selling type of property in England and Wales, with an average sale time of just 27 days. So, what’s behind this resurgence, and is the same happening in Northampton? Also, why are terraced houses, which some may have once considered outdated, now back in vogue?

 

The Terraced House - A Longstanding British Staple

The terraced house has deep roots in the UK’s architectural history, dating back as far as the 1600s when it was first introduced in the aftermath of the Great Fire of London. With their symmetrical design and efficient use of space, terraced houses quickly became a go-to solution for housing in urban areas. They provided a dignified alternative to the overcrowded slums of the Industrial Revolution, offering practical yet comfortable living arrangements for workers flocking to cities like London, Manchester, and Liverpool.

In cities such as Northampton, where Victorian terraced houses are still a prominent feature of the local housing market, these properties once housed factory workers and their families.

Their typical layout - two reception rooms downstairs, two good-sized bedrooms upstairs (sometimes a third off the back bedroom or a converted loft) and a small kitchen or scullery to the rear - allowed for flexible living, even if modest by today’s standards. Yet despite their simplicity, they’ve managed to stand the test of time, evolving with the needs of their occupants.

 

Why Are Northampton Buyers Rediscovering Terraced Houses?

Several factors are driving the renewed interest in terraced houses. One is price. As Northampton buyers feel the pinch of rising interest rates and tightening budgets, many are realising that a two-bedroom terrace often offers better value than a similarly sized flat. Buyers are attracted by the fact that they can often have an entire house for the price of a flat, complete with a garden, their own front door, and no shared floors with noisy neighbours upstairs. These are benefits that flats simply can't compete with, especially in densely populated urban areas in London, Manchester and Birmingham.

Post-COVID priorities have shifted the focus toward homes with outdoor space, and the humble terraced house often comes with some yard/garden space, even if it is usually on the small side. This is appealing not just to first-time buyers but also to those looking to escape the claustrophobia of apartment living. Additionally, the cladding crisis, brought to light by the awful Grenfell Tower disaster, has caused many to lose confidence in some modern flats, turning instead to the more traditional Victorian terraced home.

Another factor is the freehold nature of most terraced houses. Unlike leasehold flats, where buyers must contend with service charges, ground rent, and sometimes unreliable management companies, a freehold terrace gives buyers full control over their property, which is a huge plus for many.

 

Transforming Spaces and Adding Value

Terraced houses also offer a significant potential for customisation and renovation. Stories of buyers transforming run-down Northampton terraces into modern masterpieces are increasingly common. I have seen many terraced homes with the addition of a contemporary extension, the homeowner has not only made the home liveable but has also increased its value significantly (although be careful you don’t spend too much as there is a ceiling price for a terraced house). For many Northampton home buyers, especially those with an eye for design, these houses offer the perfect balance of history and potential for modernisation.

Extensions, loft conversions, and open-plan layouts are just some of the ways Northampton terraced homeowners are reconfiguring their homes to suit contemporary lifestyles. These renovations often add both space and value.

 

The Northampton Terraced ‘Scores on the Doors’

According to my analysis, terraced houses represent 31.5% of the homes in Northampton - higher than the national average of 22.5%.

For comparison, Northampton apartments/flats represent 17.9% of Northampton homes.

Next, let’s look at the house prices of the Northampton terraced home.

Between 1995 and today, the average price of a terraced house in Northampton has risen from £37,655 to £233,381 (an impressive rise of 520%), interesting when the overall Northampton average rise is 470%.

Finally, in the last 3 months the average Northampton terraced home has taken 31 days from the property going on the market to achieving a sale, not bad when compared to 51 days for Northampton flats.

 

A Bright Future for the Northampton Terraced House

In conclusion, the Northampton terraced house has never truly fallen out of favour. While it may have been overlooked at times, especially as modern flats and larger detached homes grow in popularity, the terraced house has always been a reliable, affordable, and adaptable choice for Northampton and British buyers. With its combination of history, practicality, and untapped potential, it’s no surprise that this humble house is once again becoming a mainstay of the national housing market.

For first-time buyers, those seeking to downsize, or anyone looking for a flexible home with character, the terraced house may just be the perfect fit!

Discovering Northampton: Part 10

 

As someone who lives and works in Northampton, I completely understand the concerns some people have about feeling like we’re packed in. At times, especially during the rush hours, it can feel a bit tight, but when we look at the data, the picture is quite different.

The map above shows population density across Northampton, and what’s clear is that, compared to many other towns and cities, we’re far from crammed in. The light green areas show where population density is low, light blue has medium population density and the dark blues high population density, where more people live per square kilometre. As you can see in the map, Northampton has nothing extreme and mostly green with pockets of light blue. There are areas in the UK with the dark blue areas and they tend be in central London and few other larger cities in the UK.

This means Northampton offers a balance — we have the benefits of a decent-sized town without the feeling of being overcrowded.

We’re quite lucky to have plenty of open spaces, a good mix of housing, and areas that give families, couples, and individuals room to breathe. So, while it might feel a bit hectic at times, the reality is that Northampton remains a comfortable and spacious place to live. As a local estate agent, I can assure you that the property market here reflects this. We’re not bursting at the seams — instead, we have a town that offers both community and personal space.

Tell me your thoughts in the comments.

London: Europe's Most Expensive City to Rent!

 

London has officially topped the charts as the most expensive city in Europe to rent a home, with an average price of £39 per square metre per month. But the costs can skyrocket even higher if you’re looking to live in central West London, where rents can reach a staggering £59 per square metre per month! 

For the rest of the UK, the picture is quite different. Outside of London, the average rent stands at a more reasonable £17 per square metre per month, yet still expensive when compared to many of the mainland European cities in the graphic.

A lot of this comes down to the fact that homes on the mainland of Europe are much bigger, so the price per square metre is lower.

This data also highlights the divide between rental prices in the capital and the rest of the country. Whether you're already in the rental market or thinking of moving, understanding these figures is crucial in making informed choices. 

It’s clear that while London offers unique opportunities and experiences, it comes at a price. 

My question to the people of Northampton is, what do you think about these statistics? Please share your thoughts in the comments.

 

How have house prices changed over the past 50 years?

 

The graphic illustrates the staggering percentage increases in house prices across various regions of the UK over the last 50 years. The data, sourced from Land Registry, Denton House Research and Nationwide, sheds light on how each part of the UK has seen unprecedented growth. Here’s a breakdown, listed in order of the size of growth:

 

• London: 3,856%
• South East: 2,905%
• South West: 2,807%
• East Anglia: 2,558%
• North West: 2,512%
• East Midlands: 2,501%
• West Midlands: 2,329%
• Wales: 2,081%
• Northern Ireland: 2,085%
• Yorkshire & Humberside: 1,951%
• North East: 1,915%
• Scotland: 1,802%

 

This extraordinary surge in UK house prices raises a few important points of comparison. Inflation over the last 50 years in the UK has been 891%. Over the same period, the average price of a new car has risen by around 1,400%. Household goods like televisions, while improving in functionality and quality, have seen price increases of only 50% to 100%, yet a pint of beer has increased by 2,100%. In context, average UK wages have risen by 1,867%.

The housing market's growth dwarfs these figures, making property one of the most significant long-term investments over the last five decades.

While inflation, wage growth, and population density have played roles in these price rises, the stark differences between regions—especially London compared to other parts of the UK—show that ‘location location location’ still reigns supreme in property investment decisions. Of course, those regions that have not performed so well in the long term, have seen some of the best growth over the last five to ten years, so who knows if they are starting to catch up with the other regions? Only time will tell!

This historic growth suggests that for those who own homes, particularly in certain areas, their properties have not only provided shelter but have become one of the best investments they could have made.

What do you think about these changes people of Northampton?  Have you or your family experienced the impact of these property price rises? I’d love to hear your opinions. Share your thoughts!

A Tale of Two Northampton Property Markets and the Need for Realistic Pricing

 

The Northampton property market has undergone significant changes over the past few years, as depicted in the two graphs provided. These visualisations capture the trends in the number of properties available for sale and the number of properties sold subject to contract (SSTC) from January 2019 to July 2024. By analysing these graphs, we can gain insight into the evolving dynamics of the local property market and the necessity for Northampton homeowners to adopt realistic pricing strategies, especially given the doubling of available homes since mid-2022.

 

A Closer Look at the Northampton Market Dynamics (2019-2024)

From January 2019 through to February 2020 (a normal market), the number of properties for sale in Northampton remained relatively stable, at an average of 2,842 homes (Northampton being NN1 to NN7). This pre-COVID period also showed a steady number of properties being sold each month, with an average of 507 home sales. This indicates a balanced market where the supply of homes was more or less matched by buyer demand.

The Northampton property market underwent a noticeable shift with the onset of the COVID-19 pandemic in late March 2020. As the pandemic gripped the nation, the number of properties that sold in April and May 2020 plummeted sharply. This was due to the uncertainty brought about by the pandemic, with many potential buyers holding off buying a home amidst the economic uncertainty.

However, the floodgates opened once the property market lockdown was lifted in May/June 2020. The number of properties coming onto the market in June/July/August 2020 in the UK rose by 27.1% above long-term averages for the time of year, yet the number of homes selling also rose.

In Northampton, in the 20 months between May 2020 and December 2021, the average number of Northampton homes selling was 623 per month (one month, it even hit the heady heights of 807 homes sold stc). Yet, the number of homes for sale steadily dropped throughout that period to an all-time low of just 1,369 homes for sale in December 2021.

What stands out during this period is that despite the reduced number of Northampton properties for sale, the number of properties sold remained robust. This surge in demand, despite a drop in available Northampton homes, can be attributed to the combination of pent-up demand and the government's intervention in the property market, mainly the stamp duty holiday, which incentivised buyers to move quickly.

As the dust started to settle from 2021 and as we moved into the first half of 2022, the property market started to feel like it was coming back to a ‘normal property market’ as the number of homes selling settled down and the general level of properties for sale also steadily began to rise.

However, just as we returned from our summer holidays in 2022, the Northampton property market was badly hit twice in a 12-month window.

The first hit was the Truss Budget in late 2022. In the five months following that budget, the average number of Northampton home sales slumped to an average of only 370 sales per month. It started to recover in the spring of 2023, as home sales rose to an average of 504 sales per month, only to be hit again when the increasing interest rates started to bite in the summer of 2023. Home sales in Northampton dropped to only 413 sales per month in the summer months of 2023.

Since January 2024, the number of Northampton homes selling has been at an average of 555 homes sales per month, yet here is a fly in the ointment: the number of homes for sale has steadily risen to 2,837 in August 2024 alone.

This significant increase in supply could be due to various factors, including homeowners taking advantage of high property prices, an increase in new builds, or a growing number of properties that failed to sell in previous months being relisted.

 

Percentage Proportions: Northampton vs. UK Trends

The second graph, set against a black background, delves deeper into this dynamic by comparing the same set of numbers against each other and expressing them as a percentage.

By doing that, we can analyse the proportion of monthly homes sold relative to the number of properties available.

The yellow line on the graph represents the percentage of Northampton properties sold SSTC during the month as a proportion of the homes for sale, while the red line for interest shows the equivalent figure for the entire UK.

This graph reveals quite telling information. Throughout 2020 and into early 2021, the proportion of homes sold in Northampton (yellow line) spiked into the late 30%. This aligns with the earlier observation that, despite fewer homes being available, a higher percentage of these homes were being snapped up by eager buyers following the pandemic.

 

However, as we moved into 2022 and beyond, this trend began to reverse. The proportion of homes sold (as a percentage of the homes for sale) in Northampton started to decline, and the figure now it stands around the mid to late teens.

 

What Does It All Mean for Northampton Home Movers?

The stable number of home sales against a backdrop of increasing supply could signal a potential issue: the market may be approaching a tipping point where supply begins to outstrip demand.

Given these trends, it’s clear that Northampton homeowners looking to sell their properties need to be mindful of the market dynamics. With the number of homes for sale having almost doubled since mid-2022, competition among sellers is fiercer than in recent years. While buyer demand remains strong, it has not increased at the same rate as the supply of Northampton homes on the market, which could lead to longer times on the market and, potentially, downward pressure on prices.

In such a market, pricing becomes crucial. Northampton homeowners who are serious about selling need to ensure their properties are competitively priced to attract buyers.

Overpricing in a market with abundant choices could result in Northampton properties languishing unsold for extended periods. On the other hand, a realistic and attractive price point could make all the difference in securing a swift sale.

Also, remember that the longer a home takes to sell, the greater the chance the sale will fall through even when the sale is agreed upon. Looking at an examination from Denton House Research using data from TwentyEA, they noted that if a UK home sold within 25 days of the property coming on the market, the homeowners had a 94% chance of getting the sale through to completion (i.e., moving) with only a 6% chance of the sale falling through. If, however, the sale was agreed upon in more than 100 days, the chances of actually completing that sale and moving reduced vastly to only 56%, with a 44% chance of the sale falling through.

In conclusion, while the Northampton property market remains active, available homes have nearly doubled since mid-2022 and this has introduced a new challenge for sellers. To achieve a successful sale, Northampton homeowners must pay close attention to market trends and set their prices accordingly. Realistic pricing and an understanding of the broader market dynamics will be vital in navigating this evolving landscape. As the data suggests, the market is still healthy, but the balance between supply and demand is shifting, making strategic pricing more critical than ever.

 

Northampton Property Market Review: The September 2024 Update

 

Northampton homeowner or landlord? Curious about the trends in the Northampton 's property market? 

One measure is the average price paid for homes bought and sold in Northampton in the last 12 months, on a rolling month by month basis. Each month I like to share this figure, and whilst this figure alone will not tell you much, its trend will. 

My followers on social media know I write regular articles on the Northampton property market. It is in those articles I expand and clarify what these monthly figures mean to you.

Whether you are contemplating selling your property or simply interested in understanding its current market value, I’m here to help. I provide detailed, no-obligation free valuations, designed to guide your future property related decisions.

Keep yourself informed and a step ahead in understanding the true worth of your property in Northampton. For a hassle-free, comprehensive market evaluation of your home, contact us at 01604 801 962. Let's explore the potential of your Northampton property together.

Renters’ Rights Act Update: What Northampton Landlords Need to Know

 

On Wednesday, Parliament had the first reading of the Renters’ Rights Act, and I want to take a moment to reassure landlords that there’s really nothing groundbreaking in these proposals that should catch you off guard. In fact, most of the changes were part of the Conservative Party’s agenda before they lost power in July. Regardless of which political party is in charge, these reforms were set to come into play, so there’s no need to worry that anything revolutionary is happening.

Let’s break down what’s involved and how it might affect you as a Northampton’s landlord.

 

The End of Section 21 ‘No Fault’ Evictions

The big headline in the newspapers was the abolition of Section 21 evictions. For years, landlords have been able to give tenants a two-month notice to leave a property without giving any reason. The proposed changes will scrap these ‘no fault’ evictions, which many have viewed as unfair, particularly when used to displace tenants who challenge poor living conditions or refuse to accept rent increases. 

But don’t worry, this doesn’t mean Northampton landlords are left powerless. You will still be able to evict tenants who break the rules under Section 8 of the Housing Act. This will cover situations such as non-payment of rent, damage to the property, or antisocial behaviour. The main difference is that it will require a court order, which, admittedly, has faced delays in recent years. The government has assured us that they will work to clear the backlog and streamline the process.

 

Rent Increases and Bidding Wars

Another important point is the ban on bidding wars. Many Northampton landlords and letting agents have seen tenants offering above the asking rent due to the high demand for rental properties. The new legislation will make it illegal to ask for or accept bids higher than the advertised rent. This may stabilise the market, but it’s something to keep in mind when setting rent prices for your Northampton rental property.

Additionally, in-tenancy rent increases will be limited to once a year and will no longer be allowed during the fixed term of a tenancy. While this might seem restrictive, it provides a sense of stability for tenants and can encourage longer-term lets.

 

Energy Efficiency and Property Standards for Northampton Landlords

I have spoken about this a few weeks ago, the proposed act also introduces stricter regulations on the quality and energy efficiency of rental properties. By 2030, landlords will need to ensure that their properties have an Energy Performance Certificate (EPC) rating of C or better. If you need a copy of that article, let me know. This is a long-term requirement, so while it may require some investment, there’s plenty of time to plan and budget accordingly.

The introduction of the Decent Homes Standard into the private rental sector means that Northampton landlords will also need to ensure properties are maintained to a certain standard, particularly regarding hazards like damp or mould. It’s a move aimed at improving the overall quality of rented accommodation, and while it will mean more responsibility for landlords, most of you are likely already meeting these standards.

 

Let’s Chat

If any of these changes are causing you concern, don’t panic. I’m here to help guide you through what these reforms mean for your specific situation. Whether you need advice on complying with new regulations or simply want to understand how these changes might impact your investments, I’m available for a chat.

Feel free to reach out at any time to discuss how we can ensure your properties remain compliant and profitable.

📞 Drop me a message at northampton@belvoir.co.uk or give me a call on 01604 801 962 for a no-pressure nor obligation conversation.

 

Northampton Property Market: Navigating the Rollercoaster of the Last Six Years

 

The Northampton property market has experienced a rollercoaster ride since 2019, reflecting the unprecedented challenges and opportunities that have shaped the landscape of home buying and selling in the area. The accompanying graph vividly illustrates these dramatic fluctuations, comparing Northampton's monthly house sales, expressed as a percentage of the six-year (2019 to 2024) average in blue. Also on the graph in orange is the Bank of England's base rate between 2019 to 2024.

By examining this six-year time frame, we can better understand the resilience of the local market and the influence of economic factors, particularly interest rates, on property transactions.

The Pandemic’s Impact and Post-Lockdown Surge

The first significant event highlighted in the graph is the pandemic and the lockdown in early 2020. The property market in Northampton, like much of the country, ground to a near halt, with house sales in April 2020 alone plummeting by 90% below the 2019 to 2024 medium term six-year monthly average. The lockdown effectively froze the Northampton property market, as restrictions made it difficult for people to view properties, secure mortgages, or move homes.

However, the Northampton property market experienced a remarkable rebound once the lockdown measures were eased. The graph indicates a "Post Lockdown Boom," with sales soaring in some months to 49.5% above the six-year monthly average by mid/late 2020. This surge can be attributed to pent-up demand, government incentives like the Stamp Duty holiday, and a renewed appreciation for home ownership as people sought more space and comfort during uncertain times. This period saw extraordinary activity, with many homes selling quickly and often above the asking price.

 

The Truss Budget and Rising Interest Rates

The Northampton property market remained buoyant through 2021, although sales began to normalise in the later months of that year, fluctuating but still frequently staying above the long-term average. The shift in dynamics started in mid/late 2022, coinciding with the economic upheaval triggered by the "Truss Budget." The budget, which led to market instability and rising mortgage rates, immediately impacted buyer confidence. As a result, Northampton's house sales dipped below the long-term average as potential buyers paused to reassess their financial positions.

Simultaneously, the Bank of England responded to inflationary pressures by increasing the base rate, as depicted in the graph. The sharp rise in interest rates through 2022 and 2023, peaking at around 5.25% in 2023, further dampened market activity. Higher mortgage rates reduced affordability, particularly for first-time buyers, and made it more challenging for existing Northampton homeowners to move up the property ladder. The market cooled significantly, as seen in the negative sales percentages during this period.

 

Resilience and Recovery in 2024 in the Northampton Property Market

Despite the headwinds of higher interest rates, the Northampton property market in 2024 shows signs of resilience. The graph illustrates that even with these challenges, monthly sales have stabilised and are still above the long-term average, a testament to the underlying strength of the local market. It's important to note that this average includes the exceptionally high sales volumes of 2020 and 2021, making the current performance even more impressive.

In-Depth Annual Data for Northampton

Looking at the data for Northampton estate agents in the postcodes NN1 to NN7:

·       2019 - An average of 503 properties sold (stc) per month in Northampton, 3.3% lower than the long-term 6-year monthly Northampton average of 520 property sales. 

·       2020 - An average of 538 properties sold (stc) per month in Northampton, 3.4% higher than the long-term 6-year monthly Northampton average of 520 property sales. 

·       2021 - An average of 598 properties sold (stc) per month in Northampton, 15.0% higher than the long-term 6-year monthly Northampton average of 520 property sales. 

·       2022 - An average of 502 properties sold (stc) per month in Northampton, 3.5% lower than the long-term 6-year monthly Northampton average of 520 property sales. 

·       2023 - An average of 437 properties sold (stc) per month in Northampton, 16.1% lower than the long-term 6-year monthly Northampton average of 520 property sales. 

·       2024 YTD - An average of 554 properties sold (stc) per month in Northampton, 6.6% higher than the long-term 6-year monthly Northampton average of 520 property sales.

This sustained level of activity suggests that demand for homes in Northampton remains robust, driven by factors such as the area's appeal, the relative affordability compared to renting, and perhaps the normalisation of the work-from-home culture that allows more flexibility in where people choose to live. Furthermore, Northampton sellers have become more realistic with pricing, and buyers who have adjusted to the new interest rate environment continue to move forward with their plans.

 

Looking Ahead: A Market of Opportunity

As we move deeper into 2024, the Northampton property market presents opportunities for buyers and sellers. For sellers, the current conditions indicate that, despite higher interest rates, there is still strong demand for well-priced properties. On the other hand, buyers may find that the stabilising market offers a window of opportunity to secure a home before any potential further economic changes.

If you're considering moving in the next 6 to 12 months, now might be the perfect time to explore your options. Whether you're looking to downsize, find more space, or change your surroundings, I invite you to get in touch for a free, no-obligation valuation and market appraisal of your Northampton home. Understanding the value of your Northampton home in the current market is the first step to making informed decisions. Let's discuss how I can assist you in navigating this dynamic market to achieve your property goals.

The Northampton property market may have its ups and downs, but with careful planning and the right guidance, there are still plenty of opportunities to capitalise on this ever-changing landscape.

 

How many homes have sold in Northampton?

 

In the past five years, 14,361 homes have been sold in Northampton, reflecting the dynamic and ever-evolving nature of the local property market. Notably, 2021 and 2022 saw an approximate 30% and 20% respective increase in house sales compared to the long-term 30-year average, indicating a significant surge in activity. However, in 2023, home sales figures were slightly below the norm, though projections for 2024 suggest a modest rise above average long-term levels.

As a dedicated estate agent in Northampton I pride myself on staying ahead of these trends and providing insightful analysis on the local property market. 

If you're curious about what's happening in Northampton’s property landscape or are considering selling within the next 6 to 12 months, I invite you to follow my Northampton property blog for regular updates. 

And for those ready to take the next step, I offer a free, no-obligation valuation and market appraisal—simply give me a call on 01604 801 962, or email me on northampton@belvoir.co.uk to discuss where you stand in today's market. 

Analysis of Trends in UK Property Ownership (1918-2023)

 

The UK property market has seen significant changes over the last century, with distinct trends emerging in the areas of owner-occupied properties, social renting, and private renting.

In 1918, the UK property landscape was dominated by private renters, who made up 75% of all households. At the time, only 25% of the population owned their own homes. Over the next few decades, home ownership gradually increased, reaching about 38% by 1958. This shift was accompanied by a decrease in private renting, which fell to 41% during the same period.

The most significant growth in home ownership occurred between 1958 and 2003, where the percentage of owner-occupiers surged from 38% to 70%. This period saw a corresponding decline in both private renting, which fell to just 8% in 2003, and social renting, which peaked at 29% in 1978 before declining to 22% by 2003.

Interestingly, the trend for private renting reversed around the time of the global financial crisis. Between 2003 and 2008, private renting began to grow again, rising from 8% to 10% of households. This growth continued, reaching 20% by 2023. This resurgence in private renting may be attributed to various factors, including increased housing demand, affordability challenges in the homeownership market, and changes in government housing policies.

Meanwhile, social renting has seen a gradual decline since its peak in the late 1970s, stabilising around 18% in recent years. The reduction in social housing reflects broader changes in government policy and the gradual shift towards promoting homeownership and the private rental sector.

In summary, the UK property market has evolved significantly over the past century. The initial dominance of private renting has given way to an increase in homeownership, although recent years have seen a renewed growth in the private rental market. 

As a Northampton estate agent, it’s important to recognise these trends and consider how they may impact local homeowners and landlords alike. The current levels of private renting and homeownership resemble those seen in the 1970s and 1990s, respectively, highlighting the cyclical nature of the property market. 

Understanding these trends can provide valuable insights for making informed decisions in the current property landscape

 

 

NORTHAMPTON LANDLORDS : got a problem tenancy?

 

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A good agent proves its worth when the going gets tough. On the odd occasion (and it’s statistically rare) that we have a genuine problem with a tenancy, we work hard with the landlord to get that resolved. This separates us out from many of our competitors who send a couple of letters to the tenant, then tell the landlord they need a solicitor – we know this as it’s very clearly written in the agent’s standard terms.

If you are a landlord who is struggling with a tenancy we may be able to assist you, particularly if:

• Your current agent has given up, or
• The relationship between landlord and tenant has broken down, or
• You’ve self-managed the tenancy, got the paperwork wrong, and are now struggling to unpick what you’ve done in order to get possession of the property, or
• The Local Authority has become involved in tenancy matters and is making demands of the landlord.

Generally we can help landlords who have properties in Northampton and around. Occasionally we can assist with properties elsewhere in England (not Scotland or Wales). Helping may involve sorting out incorrect paperwork, providing advice, dealing with Local Authority requirements, making property improvements, acting as mediator with your tenant, or obtaining possession of the property through the Courts.

We assess these things on a case by case basis, and may not be able to offer assistance in certain circumstances. Once we understand what is required, our charges will be made clear to you in writing before any work is undertaken.

If you need some assistance with a tenancy matter, please email northampton@belvoir.co.uk in the first instance

 

Northampton Property Market: Where are the Cash Buyers?

 

The UK property market has undergone significant shifts since the summer of 2020, driven primarily by the post lockdown race between the summer of 2020 and late 2021, and then a rapid series of interest rate hikes aimed at curbing inflation in 2022 and 2023. These changes have had far-reaching implications across the property market, influencing both prices and transaction volumes.

As we explore the nuances of these facts, it has become evident that while some anticipated trends (the property market was supposed to crash in Covid and again on the interest rate rises), this did not fully materialise. In fact, the property market has shown remarkable resilience under pressure.

The Interest Rate Surge and Its Impact

The initial wave of interest rate hikes began in November 2021, as the Bank of England sought to counter rising inflation, a process that continued until the summer of 2023. Over this period, interest rates were raised 14 times, culminating in a peak rate of 5.25%. The Bank of England's decision to implement such a rigorous monetary policy stemmed from concerns about the rapidly escalating cost of living, a consequence of both domestic and global economic pressures, including the significant disruption caused by Russia's invasion of Ukraine in February 2022.

However, the interest rate tide began to turn in August 2024 when the Bank cut rates slightly, to 5%, in response to improving inflation figures. This reduction, coupled with signs that further cuts could be on the horizon, has brought a sense of cautious optimism to the market. For the first time in many months, there is a glimmer of hope that the worst of the economic storm may be behind us.

So, let us look at house prices locally over the last 4 years.

Local Property Market House Prices in West Northamptonshire Between 2020 and 2024

The average value of a property in West Northamptonshire in July 2020, was £242,911. Today, according to the Land Registry, that now stands at £292,663, a rise of 20.48%. So, house prices in the Northampton and West Northamptonshire area as a whole haven’t dropped, despite the two predictions they would. So surely, it must be cash buyers that kept the Northampton property market afloat, considering the huge increases in interest rates?

Cash Buyers: Not the Game-Changer We Expected

In analysing the performance of different segments of the British property market during this tumultuous period, one of the more surprising findings is the limited role that cash buyers have played. Traditionally, cash buyers are perceived as having a significant advantage in a high-interest-rate environment. Without the need for financing, they are insulated from the direct effects of rising borrowing costs, which should, in theory, allow them to dominate the market when mortgage rates soar. So, did the number of cash buyers rise when interest rates began to rise in 2022?

The proportion of UK home buyers with cash has indeed risen from

the late 20%’s in 2020/21 to the early 30%’s in 2023/24.

As you can see it increased, yet it wasn’t an avalanche. Despite their financial advantages, cash buyers did not dramatically alter the dynamics of the market. Instead, the pace of the market continued to be set by those who rely on mortgages, even as the cost of borrowing increased substantially. This trend underscores the critical role that mortgaged buyers play in shaping market conditions.

Looking locally in West Northamptonshire:

·       In 2020, 27.57% of UK home buyers were cash buyers, whilst in West Northamptonshire, 20.4% of buyers were cash buyers.

·       In 2021, 28.06% of UK home buyers were cash buyers, whilst in West Northamptonshire, 20.5% of buyers were cash buyers.

·       In 2022, 27.79% of UK home buyers were cash buyers, whilst in West Northamptonshire, 20.3% of buyers were cash buyers.

·       In 2023, 32.94% of UK home buyers were cash buyers, whilst in West Northamptonshire, 26.0% of buyers were cash buyers.

·       In 2024 YTD, 33.26% of UK home buyers were cash buyers, whilst in West Northamptonshire, 23.9% of buyers were cash buyers.

Locally in West Northamptonshire, we also saw a growth in cash buyers – yet again, nothing groundbreaking!

 

Mortgage Stress-Testing and Market Stability

So why were the doom mongers wrong about the property market crashing due to the vast increase in mortgage rates? This was down to the effectiveness of the Mortgage Market Review stress-testing rules introduced in 2014 for borrowers after the global financial crisis of 2008. These rules, designed to ensure that borrowers could withstand higher interest rates, have been instrumental in maintaining stability in the property market. Even as mortgage rates more than quadrupled from their lows, over three quarters of UK’s local authorities saw house prices increase between the spring of 2022 and the spring of 2024.

This stability is further evidenced by the relatively low levels of repossessions compared to the aftermath of the global financial crisis. In the 4 years after the global financial crash (2008 to 2011 inclusive), 113,374 UK were repossessed. In the Covid years of 2020 to 2023 inclusive, that number was 7,379 UK households.

Strong wage growth (average UK wages have risen from £31,487pa in 2020 to £35,828pa) and lender forbearance has also played vital roles in supporting borrowers during this challenging period.

These factors have collectively prevented the kind of widespread distress that many feared would occur as rates climbed.

Affordability and the Shift in Buyer Preferences

While house prices have remained robust in most areas, affordability has continued to be a significant concern for buyers, particularly in more expensive urban markets such as London. The pandemic-induced ‘race for space’ accelerated a trend where financially constrained buyers sought more affordable properties outside major cities. This migration from urban centres to more suburban or rural locations has been a defining characteristic of the property market over the past few years, and it appears to have gained further momentum as rates rose.

In more expensive locations, where the cost of living and property prices were already high, the increase in mortgage rates has made buying a home even more challenging for many. As a result, these areas have seen a shift in buyer demographics, with those less affected by higher rates—such as wealthier individuals or those moving from more affordable regions—continuing to purchase, while others have been priced out.

Sales Volumes vs. Prices: A Complex Relationship

As we evaluate the overall performance of the UK housing market, it's evident that while property prices have remained relatively strong, sales volumes did see a decline in 2023 compared to the surge witnessed in 2021. In 2021, transactions peaked at approximately 1.4 million, a significant increase compared to previous years. However, by 2023, this figure had decreased to around 1.02 million.

Despite the rise in interest rates during 2023, its transaction levels were consistent with long-term trends (there were an average 1.06 million transactions per year between 2008 and 2019). This stability highlights the resilience of the housing market. 2024 projections suggest that transactions may reach approximately 1.15 million, indicating a stable property market that continues to align closely with historical norms, even amid current economic conditions.

The persistence of strong prices, despite lower transaction volumes, suggests a degree of pent-up demand. If Northampton buyers perceive that interest rates have stabilised or are beginning to decline, we could see a significant increase in transaction activity. This potential recovery is likely to be most pronounced in regions where affordability remains a key factor, and where the desire for more space continues to drive buyer behaviour.

Looking Ahead: A Pivotal Moment for the Northampton Market

As we move forward, the UK property market appears to be at a crucial juncture. It is showing encouraging signs as we move through the latter half of 2024. With listings up by 7.2% year-to-date compared to pre-pandemic averages and gross sales 22% higher than the same time in 2023, the market is demonstrating resilience. Net sales have also surged, with a 28% increase compared to the same period last year, reflecting strong buyer activity. Additionally, the slight 2.6% rise in sale prices per square foot from January to July 2024 indicates a steady demand for property. These positive trends suggest a robust market outlook as we progress through the year.

Coupled with the recent rate cut, and better-than-expected inflation figures, this may signal the beginning of a more stable period. If financial markets are correct in predicting further rate cuts by the end of the year, we could see renewed confidence among buyers, leading to a more robust recovery in sales volumes.

However, it’s essential to recognise that the landscape has changed. The experience of the past four years has reinforced the importance of affordability, the resilience of stress-tested borrowers, and the critical role of mortgage buyers in setting market dynamics. As estate agents, understanding these shifts is crucial in navigating the evolving market and advising clients effectively.

As a Northampton homeowner looking to sell, it's crucial to approach the market with a realistic mindset. With only 53% of properties that come onto the market successfully reaching a completed house sale and move, the odds of selling can feel like a flip of a coin (12 months to 23^rd August 2024, of the 1,420,486 homes that left UK estate agents books, 798,886 homes exchanged and completed, and 710,620 homes withdrew unsold).

To ensure you're on the right side of that coin, it's vital to set a competitive price and present your property in the best possible light as this can significantly increase your chances of securing a sale and achieving your moving goals.

In Northampton and similar towns and cities, where affordability and the search for space are particularly relevant, the insights gained from this period of upheaval will be invaluable. By staying attuned to these trends and anticipating the needs of our Northampton clients, we can offer informed guidance in a time of change.

In conclusion, while the past four years have been challenging for the Northampton and UK property market, they have also demonstrated its underlying strength and adaptability. As we potentially enter a more stable period, there is cause for cautious optimism. By understanding the factors that have shaped recent performance, we can better navigate the road ahead and continue to support our clients through whatever challenges and opportunities the future may hold.

If you would like to discuss anything about the Northampton property market, please not hesitate to call us at the office

 

Understanding the Shifting Age of First-Time Buyers

 

For property owners and landlords in Northampton, the latest insights on the average age of first-time buyers reveal a surprising trend. While it’s often assumed that the age of first-time buyers has significantly increased over the last two decades, the data tells a different story. 

In the UK, excluding London, the average age of a first-time buyer has only risen from 30 years and 7 months in 2005 to 33 years in 2023. In London, traditionally known for its high property prices, the age has increased from 32 years in 2005 to 35 years and 4 months today.

This modest rise reflects a resilient market where buyers are still entering the market earlier than many might expect, despite economic challenges. For those in Northampton, this stability suggests continued demand for properties, making it an opportune time for landlords and property owners to consider their home ownership and investment strategies.