The New Stamp Duty Increase: Another Hurdle for Northampton Landlords – But Is It Really a Game-Changer?

 

Over the past eight years, landlords have faced a barrage of new regulations and tax changes. From the original 3% stamp duty surcharge introduced in 2016 to Section 24’s limitation on mortgage interest relief, the new Renters' Rights Act passing through parliament with its removal of Section 21, and recent reductions in capital gains tax allowances – it’s fair to say that buy-to-let (BTL) investors have been under relentless pressure.

Add to these the looming EPC regulations requiring properties to meet tougher standards in the next five to six years, and it’s understandable why some landlords feel stretched to the limit. 

The latest increase in stamp duty – raising the surcharge from 3% to 5% for buy-to-let properties – feels like yet another layer of financial burden.

However, while this new tax may seem daunting, it’s crucial to take a step back and consider the bigger picture.

For landlords with a long-term view, this extra cost is unlikely to fundamentally alter the viability of their investment. This one-off expense becomes “lost in the sands of time” when spread over the lifetime of an investment. Yes, it’s an upfront cost and, as with any cost, never welcome. But for the majority of BTL investments, this increase won’t drastically alter the fundamentals. In fact, it’s like when the initial 3% surcharge was implemented in 2016; back then, very few landlords were deterred, and the market quickly adapted. 

Another reason landlords can stay positive is the remarkable rental growth seen over the past few years. In the last few years, rents have risen annually by around 8-10%, fuelled largely by strong wage growth and the continued demand-supply imbalance in the rental market. With minimum wages rising and renters’ purchasing power up by 8.44% since 2015 (even after accounting for inflation), rental prices are likely to continue rising, creating a steady income stream for landlords. As wages grow, rents follow suit, which bolsters the case for long-term BTL investment as a viable strategy.

Furthermore, capital gains tax, though perceived as a deterrent, was actually reduced last year for higher-rate taxpayers, from 28% to 24% on residential property, which helps retain more of the gains made on property sales. Labour have made no change to that. Additionally, while current market conditions have shifted, UK house prices in real terms are 15.1% cheaper than they were three years ago, something else that makes buy-to-let a great opportunity.

For savvy investors, this makes now a potentially favourable time to secure a deal, even if it means absorbing a slightly higher stamp duty cost upfront.

While landlords are certainly facing pressures from the new EPC regulations in the coming years, history shows that when the government mandated the EPC rating to an "E" in 2018, it tempered the impact to avoid a market disruption with a maximum of £3,500 maximum spend to reach that level. It’s likely we’ll see a similar approach this time if it risks an excessive withdrawal of rental properties from the market.

Ultimately, the buy-to-let market remains one of the few investment avenues where one can achieve both income and capital growth. Northampton landlords may need to consider this stamp duty increase when negotiating purchase prices, but for those with a long-term perspective, this is simply another bump in the road.

While change is inevitable, BTL still represents a sound investment – especially for those who are in it for the long haul.

 

UK Property Market Update – Week Ending 20th October 2024

 

Keeping you in the loop with the latest insights from the UK property market. Here’s what’s happening right now:

 

• 32,500 new listings last week (5.5% up YTD compared to 2023)
• 26,075 UK homes sold STC (subject to contract) in just one week, bringing this year’s total to 1,045,620 – up from 912,919 last year YTD.
• 724,000 homes for sale across the UK (compared to 662,000 this time last year).
• Average sold price: £371k with £340 per sq ft on sale agreed properties.
• Renting? Average UK rent last week was £1,881 pcm.

 

For those based in Northampton, these national stats reflect trends we’re seeing locally too. 

The housing market is constantly evolving, and as a knowledgeable estate agent here in Northampton, I’m committed to providing localised updates that matter to our community.

Follow my page for the latest local market stats, insights, and tips to help you navigate property decisions with confidence. If you have any questions about the Northampton property market or further afield, feel free to pick up the phone on 01604 801 962 .

Discovering Northampton: Part 13

 

UK house prices have risen by 65.4% since 2014, yet the reality is that growth in property prices in the UK and indeed Northampton has differed from city to city, town to town.

Looking closer to home, Northampton has also experienced a varied rise in house prices, much like the wider UK property market, again rising at differing rates in the different neighbourhoods, depending on the specific area. As shown in the map, darker redder areas represent those with higher average house price growth, while lighter yellow colours indicate more modest increases. 

While some areas of Northampton have seen significant house price increases, others have experienced more tempered growth. It’s important to remember these are only average figures, so even in areas showing slower growth, individual properties may still have seen substantial value rises, and the reverse can also be true. 

If you’re considering selling your Northampton home or just want to know how much your home might be worth in the current market, I would be happy to offer you a free, no-obligation valuation. 

Each home is unique, and understanding its specific value can provide clarity whether you’re looking to sell or simply curious about the market. Get in touch today to find out more about how much your property might be worth in today’s market.

 

 

Distribution of UK Homes based on the number of bedrooms

 

The graphic illustrates the distribution of UK homes based on the number of bedrooms, providing a snapshot of the current housing stock. According to the data, the majority of homes in the UK have three bedrooms, comprising 40.4% of the total. This is followed by two-bedroom homes, which make up 27.1%, and larger homes with four or more bedrooms at 21.1%. Interestingly, only 11.4% of homes are one-bedroom properties.

As an estate agent in Northampton, understanding the local housing market's dynamics is crucial. This data is particularly relevant for those considering selling or buying in the Northampton area. 

If you’re curious about how your property fits into the current market landscape or are considering a move, now is an excellent time to explore your options. 

For a personalised free valuation of your home in today’s market, feel free to give me a call on 01604 801 962. Let’s make your next move the right one!

Northampton October ’24 Property Market: A Comprehensive Overview for Buyers and Sellers

 

Are you a homeowner in Northampton? Perhaps you’re planning to move/sell/buy within the next six to twelve months, or maybe you're on the lookout for your next dream home and have no timescales. Whether you're buying or selling, having a clear understanding of the current state of the property market in Northampton is vital to make informed choices.

You might be an investor in the Northampton buy-to-let sector, contemplating selling or expanding your portfolio. Or perhaps you’re a Northampton first-time buyer wondering if now is the right time to jump onto the market. Regardless of your situation, knowing whether the property market in Northampton favours buyers or sellers can significantly influence your strategy.

By closely examining the latest data for the Northampton property market, we can gain insight into price trends, market conditions, and the overall sentiment, helping everyone - whether buying, selling, investing, or making their first purchase - plan effectively.

What Kind of Property Market Does Northampton Have Right Now?

For those familiar with my previous analyses on the Northampton property market, you’ll know that one of the best ways to determine whether it’s a buyer’s, seller’s, or balanced market is by looking at the ratio of properties marked as “Sold STC” or “Under Offer” compared to the total number of properties available for sale.

For example, if 41 properties are marked as "Sold STC" out of 100 available, then the market is operating at 41%. This ratio isn't just a random figure - it’s a reflection of the overall sentiment in the market.

Here’s how those percentages break down:

• Extreme Buyer’s Market (0%-20%): Buyers hold all the cards.
• Buyer’s Market (21%-29%): Buyers have the upper hand but not as strongly.
• Balanced Market (30%-40%): A stable equilibrium between buyers and sellers.
• Seller’s Market (41%-49%): Sellers begin to gain the upper hand.
• Hot Seller’s Market (50%-59%): Strong competition among buyers.
• Extreme Seller’s Market (60%+): Sellers dominate, with properties moving fast.

These benchmarks play a critical role, influencing everything from listing prices to negotiating leverage.

The Current Snapshot of the Northampton Property Market

Utilising the table above, these are the statistics for the Northampton property market (NN1 to NN7 combined) for every October (as the Northampton property market is cyclical – it’s important to compare the same month).

·       Oct-16 - 56%

·       Oct-17 - 54%

·       Oct-18 - 46%

·       Oct-19 - 45%

·       Oct-20 - 54%

·       Oct-21 - 75%

·       Oct-22 - 65%

·       Oct-23 - 48%

·       Oct-24 - 53%

As is expected, it was a stronger market for Northampton sellers in the post Covid years, yet things have settled down now to levels seen before the pandemic, this current percentage of 53% puts us just into a hot sellers’ market.

What This Means for Northampton Sellers

Whilst the numbers haven’t changed dramatically, if you're looking to sell your property in Northampton, the current market conditions require more patience and flexibility than 2021. The days of properties flying off the market within days are mostly behind us, meaning sellers need to prepare for longer marketing periods.

Pricing your home realistically is more important than ever. While Northampton sellers enjoyed a particularly strong market in 2021 and 2022, where demand often outstripped supply, the situation has since shifted. The probability of your home selling has decreased compared to recent years.

In the 12 months up to the middle of October 2023, 52.49% of properties in Northampton that were on the market sold and completed (the rest withdrew unsold).

However, in the 12 months up to the middle of October 2024, that percentage rose very slightly to 52.61%, meaning there are still plenty of homes are sitting unsold or being withdrawn from the market altogether.

To give this context, the UK average has seen a slight decline, with the national completion rate dropping from 55.56% to 53.22% in the same period.

In light of these changes, your marketing approach should be well thought out. Utilising digital tools such as video marketing and targeted social media campaigns can give your property a competitive edge. These strategies help attract more serious buyers in a market where securing interest is becoming increasingly challenging.

What This Means for Northampton Buyers

For buyers, particularly in sought-after parts of Northampton, the competition remains fierce. Securing a mortgage agreement in principle will give you a significant advantage in this competitive environment. Additionally, broadening your search area may help you find properties that others have overlooked, leading to better deals.

In less competitive areas, buyers have more room to negotiate. You’ll likely find more flexibility on price and even some extras, such as fixtures, fittings, or other incentives thrown in by sellers eager to close a deal. The pressure to make quick decisions is reduced, allowing you more time to thoroughly consider your options.

It’s also worth remembering that most sellers are also buyers, so any loss you may experience on the sale side should be offset by a better deal on your next purchase.

External factors such as global economic trends, events, inflation, and interest rates will continue to influence the Northampton property market in the coming months. Keeping an eye on these trends is essential for buyers and sellers alike.

Final Thoughts

As we enter November 2024, the Northampton property market presents both opportunities and challenges for buyers and sellers. Understanding the subtle shifts in market dynamics is crucial for anyone planning a move, whether you're a seasoned investor, a first-time buyer, or looking to relocate within the area.

Staying flexible, informed, and prepared will make all the difference in navigating this market. The experience of moving is as much about the journey as it is about reaching your destination.

What is average house price in your region?

 

As an estate agent in Northampton, I'm pleased to present a detailed infographic illustrating the average house prices across the various UK regions. This valuable insight into the property market ensures that both buyers and sellers are well-informed about the current trends affecting their decisions.

Here's a summary of the average house prices by region, sorted from highest to lowest:

 

• London: £508k
• South East: £366k
• East Anglia: £328k
• South West: £308k
• West Midlands: £241k
• East Midlands: £236k
• North West: £211k
• Wales: £211k
• Northern Ireland: £207k
• Yorkshire and The Humber: £199k
• Scotland: £192k
• North East: £155k

 

These figures reflect the dynamic and varied nature of the UK property market, highlighting significant regional differences that can influence buying and selling strategies. 

For prospective clients in Northampton or anywhere in the UK, understanding these trends is crucial for making informed decisions, whether you're considering buying a first home, investing in property, or planning to sell.

At our agency, we pride ourselves on providing accurate, up-to-date market data to help you navigate the complexities of the property market. Whether you're looking to get a general sense of property values in your area or need detailed advice tailored to your specific circumstances, our team is here to offer expert guidance based on the latest market analysis.

If you have any questions about the Northampton property market or further afield, feel free to pick up the phone on 01604 801 962.

Discovering Northampton: Part 12

 

This map highlights the varying percentages of detached homes across different parts of Northampton.

The areas shown in darker shades represent neighbourhoods with a higher proportion of detached properties, while the lighter shades indicate areas with fewer detached homes. This is a great visual representation of how different parts of the town offer distinct property types, catering to a range of preferences and needs.

This week, I wanted to focus on where the detached homes are situated. In the coming months, I'll be sharing similar insights into where other types of properties, such as semi-detached homes and flats, are located. 

It’s always fascinating to see how the mix of property types of in the different parts of town. If you’d like to stay updated on these insights and other local property market trends, follow me on social media for more interesting information about the Northampton property market! 

Tell me your thoughts and if there are any surprises on the map in the comments.

The Hard Truth About Northampton’s Young: Where Do They Live and What Does the Future Hold?

 

It’s no secret that the younger generation in Northampton is finding it tough to get onto the property ladder. With the rising cost of living, stagnating wages, and stricter mortgage criteria, it's no surprise that fewer under-34s are becoming homeowners. 

But just how grim is the picture? And is there hope on the horizon for those struggling to find a place they can truly call home?

 

Northampton's Housing Crisis: The Struggles of the Under-34s

According to statistics for the West Northamptonshire Council area, there are 172,643 households in total.

Of these, 2.4% are headed by individuals aged between 16 and 24, while 13.8% are headed by individuals aged between 25 and 34.

Comparing with 2.6% of all UK households that are made up of people aged between 16 and 24 and 13.5% of all UK households made up of people aged between 25 and 34.

Looking specifically at the 16 to 24-year-old households in West Northamptonshire, they can be broken down as follows …

·       Owned Outright – 3.0%

·       Owned with a Mortgage – 13.9%

·       Social Housing – 24.6%

·       Private Rented – 58.4%

Nationally, this compares as owned outright 3.6%, owned with a mortgage 10.2%, social housing 22.8% and private renting 63.5%.

 

Next, the 25 to 34-year-old households in West Northamptonshire breakdown…

·       Owned Outright – 3.1%

·       Owned with a Mortgage – 41.6%

·       Social Housing – 16.5%

·       Private Rented – 38.8%

Nationally, this compares owned outright 4.1%, owned with a mortgage 35.5%, social housing 17.7% and private renting 42.7%.

 

For a town like Northampton and local authority area, these numbers paint a rather bleak picture of property ownership among the younger generation.

But why is this happening? The answer is multifaceted. It’s not just about rising house prices (although they certainly play a role). Wages in Northampton have not kept pace with inflation, and with lenders becoming more conservative, the amount of deposit required to secure a mortgage is higher than ever before (not because the % of deposit is higher, just the sheer pound note amount).

For young people who are already grappling with student debt and rising rental costs, saving for a deposit can seem like an insurmountable task.

 

The Shifting Sands of Homeownership

Yet, while it might feel like homeownership for the under-34s in Northampton is slipping further out of reach, it’s worth putting these figures into context. Homeownership isn’t something that young people have ever done en masse, at least not in the recent decades of the 2000s and 2010s.

While the baby boomer generation often bought homes in their early to mid-20s (in the 1970s and 1980s), the dynamics of homeownership have changed dramatically since then.

The average age of first times buyers in the 1980s was 26, now the average age is 31 years (34 in London).

In the 1980s, when the housing market was more accessible, people were more likely to buy a home at a younger age. However, times have changed, and today's generation is navigating a very different set of economic and social circumstances. The cost of housing has skyrocketed, while wages have not kept pace. Furthermore, younger people today are often burdened with additional expenses that weren’t as prevalent a few decades ago, such as student loans and rising living costs. This combination makes it much harder to save for a deposit and secure a mortgage.

But while the statistics may seem gloomy, there’s a silver lining if we look beyond the current market and consider the long term. In countries like Germany, homeownership doesn’t typically happen until later in life. Germans tend to rent for longer, often well into their 30s and 40s, before purchasing a home. Yet, when they do finally buy, they have more financial stability, higher incomes, and can often make larger down payments. The result? Less debt and more security in the long run.

This delayed homeownership is becoming more common in the UK, and Northampton is no exception. What we may be seeing is not a permanent decline in young homeowners but a shift in the timing of when people buy. Instead of purchasing homes in their 20s, more people are waiting until their mid 30s or even 40s, when they have a bit more financial stability.

 

The Hidden £23,721,929,704 West Northamptonshire Equity

One key factor that we cannot ignore is the £23.7bn of equity tied up in the homes of the 50 year plus older generation in West Northamptonshire.

Many of our older residents, who bought homes decades ago when property prices were more affordable, are now sitting on this substantial equity. As these homeowners begin to downsize or pass their properties onto their children, we may see a significant transfer of wealth to the younger generation. This could provide a lifeline for many would-be homeowners who are currently priced out of the market. 

In Northampton, where family connections are strong, and homeownership is often passed down through generations, this transfer of wealth is likely to have a profound impact on the housing market in the coming years. As baby boomers and older Gen X-ers look to pass on their properties, many younger people may find themselves with the financial means to finally purchase a home.

 

What Does This Mean for the Future of Northampton Homeownership?

The future of homeownership in Northampton isn’t all doom and gloom. Yes, the statistics show that fewer young people are owning homes, but this isn’t a permanent trend. The numbers may be low now, but there are several reasons to be optimistic about the future.

Firstly, as more young people start to prioritise saving and look for ways to get onto the property ladder, we could see an increase in homeownership rates among the under-34s. Previous schemes, such as Help to Buy and shared ownership can also provide much-needed assistance for first-time buyers in Northampton.

Secondly, as the older generation begins to pass on their wealth and property, younger people will likely have more opportunities to purchase homes, either through inheritance or through financial gifts. This generational shift will undoubtedly play a significant role in the future of Northampton’s property market.

While homeownership might not be happening as early as it did in previous decades, it is still very much attainable for those who are willing to plan and save strategically.

There’s no denying that the market is tough, but with the right guidance and support, many young people in Northampton will find that they can, in fact, become homeowners.

The key is to be patient, stay informed, and seek out opportunities as they arise.

As we look towards the future, it’s clear that the property market in Northampton is changing. Young people may not be buying homes as early as they did in the past, but that doesn’t mean they never will.

In fact, the next few decades could see a rise in homeownership as wealth transfers down through generations and more young people become financially stable.

 

In conclusion, the Northampton property market may be challenging for those under 34, but it is far from hopeless. The combination of shifting generational wealth and changing attitudes towards homeownership means that while young people may be delayed in buying homes, they aren’t being locked out of the market entirely.

Northampton’s future homeowners are out there – they’re just waiting a little longer to step onto the ladder. 

 

How long would it take to buy a home in your region?

 

The housing affordability data across the UK provides an insightful snapshot of how long it would take to buy a home in different regions based on average salaries:

 

• North East: 4.97 years
• Scotland: 5.41 years
• Yorkshire & Humberside: 6.26 years
• Northern Ireland: 6.30 years
• North West: 6.39 years
• West Midlands: 6.41 years
• Wales: 6.52 years
• East Midlands: 7.47 years
• South West: 9.20 years
• East Anglia: 9.43 years
• South East: 10.01 years
• London: 11.45 years

 

These figures paint a picture of housing affordability across the country, providing a valuable context for Northampton homeowners and potential buyers. It’s clear that property prices differ significantly depending on where you are, but for those in the local Northampton market, understanding these affordability comparisons helps to shape expectations around property values and potential future trends.

While affordability may seem daunting in certain parts of the country, it's important to remember that today’s mortgage payments, as a percentage of take-home pay, are only slightly above the long-term average. 

Despite rising property prices, the affordability landscape is far more balanced than it may appear, especially when considering historical interest rates. 

This balance ensures that homeownership remains an achievable goal for many, even in more challenging market conditions. Keeping a finger on the pulse of national trends can help to inform decisions locally, offering a broader perspective on housing affordability.

If you have any questions about the Northampton property market, feel free to pick up the phone on 01604 801 962.

Shocking Truth: Every UK Home Could Fit Inside the M25

 

Imagine this—if every single floor of every single home in the UK was laid out, one next to the other, they would all fit snugly within the confines of the M25 motorway. Yes, you read that right! 

The total floor area of all UK homes is about 891 square miles, and the M25, the infamous ring road encircling London, covers an area of 904 square miles.

The M25 has long been a symbol of Britain's complex relationship with its infrastructure and property market. Loved by some for its practicality and loathed by others for its traffic jams and pollution, the M25 mirrors the contradictions inherent in the British property market.  

For many, owning a home is the pinnacle of success, yet the stress of mortgages, house prices, and the unpredictable market makes it a love-hate affair. So, the next time you find yourself stuck in traffic on the M25, consider this: every home in the country, from Cornwall to the Highlands, Norfolk to Northern Island could be right there with you.

People of Northampton, does that surprise you? What does it say about the space—or lack thereof—in our island nation?

This startling fact is both a testament to our densely populated land and a reminder of the complexities that come with it. 

Please share your thoughts in the comments

Northampton Property Market Review: The October 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.

56 days to sell a home in Northampton

 

In the bustling property market of Northampton, the average time to sell a property with every Estate Agent currently stands at 56 days. 

This is below the national average of 73 days.

Interestingly, the national length of time to sell one’s property a year ago was 58 days a year. The national increase in the time it takes to sell a property reflects broader changes in UK market dynamics, possibly influenced by economic factors and buyer behaviour.

For homeowners in Northampton, understanding these trends is crucial. Homeowners across the UK, including those in Northampton, should consider these factors when pricing their homes to ensure they remain attractive to potential buyers.

As a knowledgeable estate agent based in Northampton, I am well equipped to help sellers navigate these changing conditions. By aligning selling strategies with current market realities and pricing properties competitively, sellers can increase their chances of achieving a successful sale within an optimal timeframe. If you're looking to sell your Northampton property and want expert advice tailored to these market conditions, feel free to reach out for a comprehensive discussion and free valuation.

 

 

 

1 in 7.7 Northampton Home Sellers Lower Their Asking Price Every Month

 

As the property landscape in Northampton continues to evolve, many homeowners who have been on the market for a while find themselves navigating the complex decision of when and how much to reduce their asking prices to attract buyers.

With an increasing number of properties on the market in the Northampton area, rising from 2,040 in August 2022 to 2,851 in August 2024, the competition is becoming fiercer, making strategic price adjustments more crucial than ever.

(Northampton – NN1 to NN7).

 

Mastering Property Portal Price Bands for Optimal Exposure

Understanding and utilising price bands on the portals (Rightmove, Zoopla and OnTheMarket) can significantly enhance the visibility of your property listing. These bands are predefined price ranges that buyers often use to filter their search results. Positioning your property’s asking price in one of these bands will strategically draw more views, and thus more interest, viewings and ultimately increase the chances of achieving a sale. For instance, pricing a property on a significant threshold, such as setting an asking price at £300,000 instead of £299,950, places the property in a search of £280,000 to £300,000 and £300,000 to £325,000, potentially attracting a broader audience.

 

The Importance of Rightmove Alerts

A critical factor in the timing of price reductions is their impact on buyer visibility. Homeowners need to reduce their asking price by at least 2% to ensure their property reappears in Rightmove’s email alerts, OnTheMarket it’s also 2%, while for Zoopla it is 3%, capturing the attention of active buyers.

 

Current State of Play in the Northampton Property Market

Several Northampton home movers have said to me recently that they believe there are a greater number of price reductions happening at the moment, compared to a couple of years ago.

As I explained in the initial part of the article, the number of properties for sale has substantially grown in the last couple of years in the Northampton area. If there are a greater number of properties for sale, I would expect a great number of price reductions.

 

In 2022, there were an average of 247 price reductions a month in the Northampton area, today it’s 423 per month. The average Northampton price reduction in the last 3 months was 4.8%.

 

So, the statistics for the Northampton area reveal that while the number of properties for sale is on the rise, the number of reductions has increased. In fact, the percentage of Northampton properties undergoing price reductions has remained roughly consistent in recent years, with an average of 1 in 7.7 Northampton homes (13%) reducing their asking price each month over the last five and a half years.

This trend underscores the importance of setting a realistic price from the outset to stand out in a crowded market.

·       An average of 13.2% of the 2,862 Northampton properties on the market in 2019 reduced their asking prices per month. 

·       An average of 11.5% of the 2,665 Northampton properties on the market in 2020 reduced their asking prices per month. 

·       An average of 10.1% of the 1,899 Northampton properties on the market in 2021 reduced their asking prices per month. 

·       An average of 12.5% of the 1,921 Northampton properties on the market in 2022 reduced their asking prices per month. 

·       An average of 16.2% of the 2,623 Northampton properties on the market in 2023 reduced their asking prices per month.

·       An average of 15.3% of the 2,757 Northampton properties on the market so far in 2024 have reduced their asking prices per month.

The Ideal Pricing Strategy for Northampton Homes

The initial pricing strategy plays a pivotal role in the speed and success of your property sale. Northampton properties priced too high at the onset tend to linger on the market, eventually requiring more significant reductions to generate interest. In contrast, Northampton homes priced realistically from the beginning are more likely to attract offers quickly, reducing the need for substantial price cuts.

For Northampton homeowners considering a higher initial asking price, it’s advisable to be prepared to make an adjustment swiftly. A reduction within the first 2 to 4 weeks can prevent your property from stagnating on the market, whereas waiting 2 to 4 months might diminish your chances of securing a prompt sale.

 

Six Things to Consider for a Price Reduction

1. A Lack of Viewings: If you haven’t received many viewings in the initial few weeks, then look at your photographs and details on the portals and compare them with other properties in your price range. If they are up to standard, then it may be time to reconsider pricing and time to talk to your agent in more detail to attract more viewings.

2. Viewings But No Offers: The UK property market ‘viewings to offers ratio’ is between eight to ten viewings per offer. If your property hasn't received any offers within the first 30 days, yet you have had lots of viewings, that could suggest the price is a sticking point. You could ask why they don’t make an offer, yet research has shown many people don’t want to make an offer that they perceive could offend i.e., a lot lower than the asking price. Therefore, it could be time to consider a reduction and bring your asking price closer to your bottom line.

3. Low Offers: Homebuyers often make low offers for a variety of reasons, primarily to secure the best possible deal. One key factor is market conditions; in a buyer's market, where there are more homes available than there are buyers, purchasers feel they have more negotiating power. Another reason is property condition - if a home requires repairs or renovations, buyers may offer less to compensate for the additional investment needed. Sometimes, buyers also make lower offers based on their own budget constraints, hoping to enter a negotiation where they can find a middle ground. Additionally, uncertainty about the future Northampton property market may lead them to make more cautious, conservative offers. If you are getting low offers, it’s always smart to remember that a home is worth what someone's willing to pay.  Not what you think it's worth. Not what the estate agent says it's worth but what a buyer is prepared to pay.

4. Market Saturation: Look at the number of Northampton homes that are on the market like yours (e.g., if you have a 2-bed apartment, look at all the 2-bed apartments on the market and sold stc). Look objectively at your home, do you stand out from your competition? Those that are sold stc should have a greater influence on your decision than those on the market. Also, ask your friends to do the same. Ask them to be 100% honest with you. Adjusting your price to become more competitive could help.

5. Seasonal Adjustments: Be mindful of the seasonal trends in the Northampton property market. Periods of high market activity might require different strategies from the slower months of say November and December.

6. Feedback from Viewings: Consistent feedback regarding the asking price of your Northampton home during viewings is a clear indicator that adjustments are necessary.

 

Leveraging Expert Advice

Given the complexities of the Northampton property market, seeking a second opinion from an expert such as ourselves can provide you with insights tailored to your specific situation. It's essential to choose a consultant who will offer honest advice, possibly telling you what you need to hear rather than what you want to hear.

Are you currently on the market in Northampton and contemplating a price reduction? Or perhaps you're seeking to list your property soon? For a no-obligation consultation and a fresh perspective on your property strategy, feel free to contact me. Together, we can ensure that your home is positioned effectively to attract buyers and achieve a successful sale.

 

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Insights into property market over the last 5 years

 

Since the 1st of January 2019, 9.1 million homes have come onto the UK property market.

I at Belvoir Northampton wanted to look at the breakdown of the distribution of property types within that figure. 

Most of these homes, 66% of these were houses. Flats made up around 20%, and bungalows accounted for 8%, reflecting the diverse nature of housing stock available across the country. 

The remaining 6% includes various other types of properties, such as retirement homes, mixed-use residential and commercial properties, HMO’s and mobile homes etc. 

This data highlights the ongoing prominence of houses in the market, but also shows a significant portion of flats and bungalows, which cater to different buyer preferences and lifestyle needs.

For those interested in the property market, these figures offer a clear picture of the types of homes entering the market in recent years and provide useful insights for estate agents, investors, and potential buyers alike. 

If you would like more information on the Northampton, regional and UK property markets, then please do follow us on social media, where we regularly post useful information on all three property markets.

 

 

 

What was September's Average £ per Square foot?

 

Welcome back to news of Northampton’s property market, where each week I bring you different local property market stats and trends. This week I am back again with the September’s £/sq.ft statistics.

The average property presently in Northampton is on the market for £257 per square foot, a figure representing the current heartbeat of Northampton’s property market.

In August it was £278 per square foot.

That doesn’t mean Northampton house prices have changed by that percentage, just the mix of properties for sale, thus changing the £/sq.ft figure. This snapshot is crucial for Northampton homeowners and landlords; it's not just a number but a story of our community's property market.

Each month, I will revisit that figure and use it to gauge the health of our local property market.

Are you keen to know how your home aligns with these trends?

At Belvoir Northampton, I invite you to a no obligation chat about your property's potential value – no strings attached.

Stay informed, stay ahead, and stay connected with Northampton’s property market beat.

20,660 Northampton Homeowners Fallen Foul of Estate Agents ‘Overvaluing’ in Last 5 Years

 

If you’ve ever considered selling your Northampton home, you may have felt the temptation to list it at a higher price, hoping for a bigger payday. After all, who wouldn’t want to maximise the return on their largest tax-free investment?

However, this approach has a downside that many Northampton homeowners - and even some estate agents- overlook: the risks and costs associated with overpricing/overvaluing your property. Recent data shows that homes priced too high take much longer to sell and are far less likely to complete the sale successfully. Let's dive into why correct pricing is essential to ensure a smooth and profitable sale for your Northampton property.

Overpricing: A Common Pitfall in Northampton’s Property Market

In recent years, the Northampton property market has seen a surge in home prices, leading to fierce competition among estate agents. During the peak of the market in 2021, many Northampton agents achieved top prices for properties, often receiving multiple offers in a matter of days. It became the norm for a Northampton home to sell quickly and for prices that exceeded expectations.

However, this boom came with unintended consequences. As fewer Northampton homes came onto the market, some agents became desperate to secure listings. To win over potential sellers, many estate agents started overpricing properties (or, sometimes described as, overvaluing), offering inflated appraisals that gave homeowners unrealistic expectations. While this might sound like a winning strategy to get more money for your home, it has caused significant distress and delays for many Northampton homeowners.

The Impact of Overvaluing: Longer Sale Times and Increased Risk

So, why are so many properties in Northampton still on the market after all this time? It often boils down to one thing: overvaluing. When a property is priced too high, it doesn’t attract serious buyers. Instead, it sits on the market for an extended period, leading to frustration for both the homeowner and the estate agent. Ultimately, it gets withdrawn from the market unsold.

So, let us look at the over-valuing statistics for Northampton since 2019.

Northampton – NN1-NN7:

·       In 2019, 50.3% of the 9,829 properties that left Northampton estate agent books, exchanged and completed.  The remaining 4,881 (or 49.7%) Northampton homeowners came off the market unsold.    

·       In 2020, 66.3% of the 8,004 properties that left Northampton estate agent books, exchanged and completed.  The remaining 3,611 (or 45.1%) Northampton homeowners came off the market unsold.   

·       In 2021, 66.3% of the 8,380 properties that left Northampton estate agent books, exchanged and completed.  The remaining 2,820 (or 33.7%) Northampton homeowners came off the market unsold.    

·       In 2022, 63.9% of the 8,101 properties that left Northampton estate agent books, exchanged and completed.  The remaining 2,928 (or 36.1%) Northampton homeowners came off the market unsold.    

·       In 2023, 50.5% of the 7,849 properties that left Northampton estate agent books, exchanged and completed.  The remaining 3,886 (or 49.5%) Northampton homeowners came off the market unsold.    

·       In 2024 (YTD), 52.1% of the 5,294 properties that left Northampton estate agent books, exchanged and completed.  The remaining 2,534 (or 47.9%) Northampton homeowners came off the market unsold.   

Since 2019, 20,660 Northampton homeowners who placed their property on the market have withdrawn their homes unsold, many because of overvaluing.

The Hard Data on Overvaluing

If the evidence isn’t enough to convince you, let’s look at more data.

Now, you could reduce your asking price after three or four months to make your home more realistic. That is certainly an option, yet because homes that sit on the market for too long often develop a negative reputation, potential buyers wonder why the property hasn't sold and may assume something is wrong with it.

As a result, even when the price is eventually lowered, as reported a few years ago, the property is likely to sell for less than it would have if it had been priced correctly from the beginning.

Also, let me remind you of the recent independent research from TwentyEa and Denton House Research, that a UK home that takes over 100 days to sell (i.e. more than 100 days between coming on the market and agreeing a sale) has only just over a 1 in 2 chance (56%) of successfully exchanging and completing the sale. The remaining 44% of sales fall through.

In contrast, if a property has its sale agreed in under 25 days, the chances of exchanging and completing rise to 19 out of 20 (94%). That’s a significant difference! If this isn’t a clear sign that overvaluing is causing harm to homeowners, which creates a lot of wasted time, stress, and disappointment for homeowners, I don't know what it is.

Why Do Some Northampton Estate Agents Overvalue?

Many homeowners wonder why estate agents overvalue a property if it ultimately harms the chances of a successful sale and the agent getting paid. The answer lies in the competitive nature of the industry. Some agents, especially those working for larger estate agency firms, are under pressure to secure as many listings as possible. This pressure can lead to overvaluing, as agents sometimes even receive commissions for getting a property onto the market, regardless of whether it sells.

These Northampton agents appeal to a homeowner's desire to get the highest possible price by offering an inflated valuation. However, once the property is listed, they often encourage gradual price reductions over time, hoping to eventually make the sale. Unfortunately, this delay can cause the homeowner to miss out on their dream home or sell for less than they would have if they had listed it at a fair price from the start.

The Importance of Correct Pricing Your Northampton Home

So, what can you do to avoid falling into the overvaluing trap? The key is to ensure your Northampton home is priced correctly from the outset. Here are a few tips to help you achieve that:

1. Get Multiple Valuations: Don't rely on one Northampton agent’s opinion. Ask several Northampton estate agents to value your home and compare their suggestions. Be wary of any agent who offers a significantly higher valuation than the others without solid evidence to back it up. Trust is key in this process, so make sure you're working with agents you can rely on.
2. Research Comparable Sales: Look at similar properties in your area that have recently sold. Sites like Rightmove, Zoopla, and OnTheMarket allow you to search for homes under offer or sold subject to contract, giving you a better sense of realistic pricing.
3. Understand the Market Conditions: The property market is constantly changing. While prices may have skyrocketed in 2021, the market has since cooled off. Make sure your valuation reflects current conditions, not the highs of the past.
4. Work with a Trustworthy Agent: Choose an estate agent with a reputation for honest and accurate valuations. A good agent will prioritise finding the best buyer for your home at the right price rather than inflating the value to win your business.

Final Thoughts

Overvaluing might seem tempting, but the risks far outweigh the potential rewards. Not only does it result in longer sale times, but it also decreases the likelihood of a successful completion. By pricing your Northampton home accurately from the start, you can increase your chances of getting a decent price and a smooth and profitable sale.

Remember, the goal isn’t just to sell your Northampton home - it’s to sell it for the best price, within the best time frame, to a serious and motivated buyer. By working with an experienced and honest estate agent, you can avoid the pitfalls of overvaluing and achieve the successful sale you deserve.

If you have any questions or would like more advice on selling your Northampton home, feel free to contact us. We're here to help!