UK Property Market Weekly Update - week ending Sunday 24h November 2024 (week 47)

 

· Listings (New properties coming on to the market)  - 27.2 UK listings this week (week 47), an expected slight drop of 1.8k from last week. 8.3% higher 2024 YTD than 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 13% of Resi sales stock was reduced in the last month. 14% last month and long term 5 year average 10.6%.

· Total Gross Sales - 23.8k UK homes sold stc this week (Week 47), 1.2% lower than last week.  21% higher than the same standalone week (week 47) in 2023. Also, 8.6% higher than 2017/18/19 YTD levels & 15.1% higher than 2023 YTD levels. 

· Sale Thru rate (Monthly): UK Estate Agents sold 16.11% of their Resi sales stock in Oct ’24. Sept ‘ 24 was 14.79%. 2024 average is 15.86% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in  mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs - Agents lost 5.8% of their sales pipeline for the month of October (up from 5.6% in Sept ‘ 24). For the week 47, Sale Fall Thrus (as a % of Gross sales Agreed) decreased 25%). The 7 year Long Term weekly Average is 24.8% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022. 

· Net Sales - 17.8k this week (average for last 4 weeks 17.7k). 20% higher than the same week 47 in 2023, 56% higher than the same week 47 in 2022 & still 17.4% higher YTD in 2024 compared to YTD 2023.

· % of Homes exchanging vs homes unsold - Of the 1,387,069 UK homes that left UK Estate Agents books since the 1st Jan 2024, 743,269 of them (53.59%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 643,800 (46.41%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid. 

· UK House Prices - As explained in the show, the £/sqft figure foretells and predicts the Land Registry 5 months in advance with an accuracy rating of 92%. Final October figures saw a slight jump in this important metric to £346/sq.ft. For comparison - Sept’s £339/sq.ft, August’s £338/sq.ft, and July at £341/sq.ft. This means house prices are slightly growing.

· Resi Sales Stock on the Market (Monthly Stat) : 725k at end of October (up from 724k at end of Sept). For comparison, Oct ’23 - 664k, Oct ’22 - 523k,  Oct ’21 - 425k, Oct ’20 - 681k, Oct ’19 - 652k

· Resi Sales Sold STC Pipeline (Units) (Monthly Stat): 505k at end of October. For comparison, Oct ’23 - 401k, Oct ’22 - 483k,  Oct ’21 - 528k, Oct ’20 - 548k, Oct ’19 - 372k

 If you would like to chat to us about our local property market, feel free to call us on 01604 626 626 or drop us a line at northampton@belvoir.co.uk

What is November'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 November's £/sq.ft statistics.

The average property presently in Northampton is on the market for £256 per square foot, a figure representing the current heartbeat of Northampton’s property market.

Last month it was £255 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.

Northampton’s Ageing Population Turning to Rentals: What it Means for Landlords

 

Recent figures from the Office for National Statistics reveal that across the UK, 486,795 households are occupied by individuals aged 65 (and over) who live in a private rental sector home. This represents 6.71% of all OAP’s that are now renting privately. 

Ten years ago, only 267,704 households were occupied by individuals aged 65 (and over) that lived in private rental sector home, (which represented just 4.39% of all older adults).

 

52.8% increase in OAP’s privately renting

 

This data raises two crucial questions: How many of these older renters have been tenants their entire lives, and how many have transitioned from homeownership to renting in later years?

In Northampton, as in other parts of the country, downsizing and renting during retirement can be a practical decision for older generations, enabling them to access the equity tied up in their homes to enhance their financial security. But why are more retirees choosing to rent, and what opportunities does this present for Northampton’s landlords?

 

Why Are Retirees Renting?

A survey by the Prudential a few years ago shed light on this trend. Nearly 60% of older renters stated they have always rented, reflecting a lifelong position in the private rental market. Around 20% have sold their homes to address debt challenges, and another 10% have deliberately chosen to sell and rent, using the proceeds to fund their retirement. The remaining renters cite various personal reasons for their choice.

Financial stability in retirement is increasingly important. Men in Northampton, upon reaching 65, have an average life expectancy of 18.6 years, while women can expect to live an additional 21.1 years. Interesting when compared to the national averages of 18.1 years for men and 20.6 years for women.

However, longer life expectancies come with the challenge of sustaining finances over an extended period, particularly as inflation, rising living costs, and low interest rates erode retirement savings.

 

The Rental Landscape in Northampton (and West Northampton as a whole)

26.7% of people who live in West Northampton are 65 years old (or older). A significant majority - 73.6% - own their homes outright. 7.3% own their home with a mortgage. Social housing accounts for 13.1% of these households. Yet, a notable 6.1% of older households - 2,790 homes - are privately rented.

This figure, while small, is on the rise. Anecdotal evidence from estate agents and local property professionals indicates that more retirees in Northampton are choosing to sell larger homes and downsize to rented accommodation. This decision often reflects a desire for simplicity and financial flexibility. Selling a family home can free up substantial equity, which older residents might use to assist their grandchildren in purchasing their first homes, secure better returns through investments, or enjoy a more comfortable retirement.

Renting also offers predictability. With a fixed monthly expenditure that typically includes property maintenance and potentially even services like gardening, retirees can budget with confidence. This arrangement removes the financial and logistical burdens of homeownership, such as unexpected repair costs, allowing for a more carefree retirement. Renting also offers flexibility, enabling older tenants to relocate with ease if their circumstances change, such as moving into assisted living or care facilities.

 

Opportunities for Northampton’s Landlords

This shift presents a unique opportunity for Northampton’s buy-to-let investors. Older tenants often seek properties that are low-maintenance and designed to suit their needs. Semi-detached bungalows, particularly those located near essential amenities such as bus routes, GP surgeries, and shops, are in high demand. These homes are often preferred for their accessibility and practicality.

For landlords, catering to this demographic can yield excellent returns. Retirees typically value stability, making them reliable, long-term tenants. Furthermore, if a property meets their needs and provides additional conveniences like included maintenance services, they are often willing to pay a premium rent for the right home.

 

The Bigger Picture for Northampton Landlords

As the population ages, the demand for rental properties suitable for older tenants is likely to grow as the Centre for Economics and Business Research (CEBR) stated in the report this summer that they expected the number of OAPs privately renting to double in the next decade. This trend presents both challenges and opportunities for landlords in Northampton. By understanding the needs of this demographic and tailoring their portfolios accordingly, landlords can not only secure steady returns but also play a role in supporting the housing needs of an ageing community.

For the private rental sector, this demographic shift highlights the importance of creating housing solutions that balance profitability with social responsibility. As leaders in the Northampton property market, we must champion approaches that meet these emerging needs while promoting long-term sustainability in the rental sector.

As always, I am keen to hear your thoughts - what opportunities do you see in this evolving market?

 

 

 

UK Property Market Sees Positive Growth in 2024 – But Challenges Remain

 

The UK property market is showing signs of strength, with a remarkable increase in homes marked as ‘sold subject to contract’ (SSTC) between January and November 2024 compared to the same period in 2023. 

This upward trend in every region across the country, reflects renewed confidence among buyers and sellers.

 

Here’s the regional breakdown of growth:

 

• East Anglia: Up 22.2% (highest growth in the UK)
• East Midlands: Up 21.5%
• South East: Up 19.6%
• North West: Up 18.5%
• London: Up 18.3%
• West Midlands: Up 18.2%
• Yorkshire & Humber: Up 17.6%
• North East: Up 15.7%
• South West: Up 15.6%
• Wales: Up 14.6%
• Scotland: Up 12.9%
• Northern Ireland: Up 12%

 

This growth is an encouraging sign, particularly after the challenges of the past few years. However, while more homes are being marked as sold, yet it’s crucial to remember that only 53% of properties listed on the market in last 18 months has ultimately resulted in a successful sale and move.

 

What This Means for Home Sellers in Northampton ?

The data shows that while the market is improving, choosing the right estate agent remains essential to achieve a successful sale. As some Northampton homeowners prepare to make their move in 2025, working with an agent that understands the local and national market and focuses on securing successful outcomes is key.

Feel free to reach out for a no-obligation consultation to discuss how we can help you navigate the current Northampton property market and maximise your property’s potential!

 

 

UK Property Market Weekly Update - Week ending Sunday 17th November 2024 (week 46)

 

· Listings (New properties coming on to the market)  - 29k UK listings this week (week 46). YTD 2024, listings are 8% higher compared to 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 13% of Resi sales stock was reduced in the last month. 14% last month and long term 5 year average 10.6%.

· Total Gross Sales - 24.2k UK homes sold stc this week (Week 46), slightly more than last week.  19.2% higher than the same standalone week (week 46) in 2023. Also, 8.5% higher than 2017/18/19 YTD levels & 14.9% higher than 2023 YTD levels. 

· Sale Thru rate (Monthly): UK Estate Agents sold 16.11% of their Resi sales stock in Oct ’24. Sept ‘ 24 was 14.79%. 2024 average is 15.86% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs -  For the week 46, Sale Fall Thrus (as a % of Gross sales Agreed) dropped significantly to 25% (down from 28.8% last week). The 7 year Long Term weekly Average is 24.2% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022. Agents lost 5.8% of their sales pipeline in Oct’24 (up from 5.6% in Sept ‘ 24). 

· Net Sales - 18.1k this week (17k last week). 18.2% higher than the same week 46 in 2023, 76% higher than the same week 46 in 2022 & still 17.3% higher YTD in 2024 compared to YTD 2023.

· % of Homes exchanging vs homes unsold - Of the 1,358,587 UK homes that left UK Estate Agents books since the 1st Jan 2024, 728,138 of them (53.6%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 630,449 (46.4%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid. 

· UK House Prices - As explained in the show, the £/sqft figure foretells and predicts the Land Registry 5 months in advance with an accuracy rating of 92%. Final October figures saw a slight jump in this important metric to £346/sq.ft. For comparison - Sept’s £339/sq.ft, August’s £338/sq.ft, and July at £341/sq.ft. This means house prices are slightly growing.

· Resi Sales Stock on the Market (Monthly Stat) : 725k at end of October (up from 724k at end of Sept). For comparison, Oct ’23 - 664k, Oct ’22 - 523k,  Oct ’21 - 425k, Oct ’20 - 681k, Oct ’19 - 652k

· Resi Sales Sold STC Pipeline (Units) (Monthly Stat): 505k at end of October. For comparison, Oct ’23 - 401k, Oct ’22 - 483k,  Oct ’21 - 528k, Oct ’20 - 548k, Oct ’19 - 372k

 

If you would like to chat to us about our local property market, feel free to call us on 01604 626 626 or drop us a line at northampton@belvoir.co.uk

INSIGHT INTO UK Households 1996 - 2023

 

The composition of UK households has evolved significantly between 1996 and 2023, with some subtle yet meaningful proportional shifts that reflect changing demographics and societal trends.

For couples with children, their share of total households has dropped from 31.1% in 1996 to 27.9% in 2023, a proportional decrease of approximately 10.3%. This reflects lifestyle changes, including delayed parenthood and smaller family sizes.

In contrast, one-person households have risen from 27.8% to 29.6%, a proportional increase of 6.5%. This growth likely reflects an ageing population, as well as more individuals choosing to live alone due to greater financial independence or personal preference.

Couples without children have seen a smaller proportional increase, rising from 27.4% to 28.1%, an increase of just 2.6%. This stability underlines the continuing trend of dual-income households and couples choosing alternative priorities to raising children. 

Lone-parent households, meanwhile, have grown from 9.9% to 10.6%, a proportional rise of 7.1%.

Interestingly, households with two or more unrelated adults have seen a proportional decline of 6.5%, decreasing from 3.1% to 2.9%, potentially reflecting challenges such as rising housing costs or changing rental practices.

Multi-family households, although still rare, have increased from 0.7% to 1.0%, a proportional jump of 42.9%, likely driven by economic pressures and the resurgence of multigenerational living. These proportional changes, though subtle, provide insights into the UK’s shifting household dynamics. 

For towns like Northampton, they highlight the importance of tailored housing policies and estate agency services that respond to evolving needs, including single-person housing, multigenerational homes, and affordability concerns.

This information is important for lots of people; including national and local government for the provision of services and future housing, buy-to-let investors knowing what sort of demand there will be different types of properties in the future and finally any homeowners wanting to know how demographic changes will affect the property market and house prices in the long term.

These are my thoughts. Please share with in the comments your thoughts on this.

UK Property Market Weekly Update – week ending Sunday 10th November 2024, (week 45)

 

· Listings (New properties coming on to the market)  - 29.5k UK listings this week (week 45), an unexpected increase of 0.9k listings from last week. YTD 2024, listings are 11% higher compared to 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 13% of Resi sales stock was reduced in the last month. 14% last month and long term 5 year average 10.6%.

· Total Gross Sales - 24k UK homes sold stc this week (Week 45), identical to last week.  17.6% higher than the same standalone week (week 46) in 2023. Also, 8.2% higher than 2017/18/19 YTD levels & 14.9% higher than 2023 YTD levels.  

· Sale Thru rate (Monthly): UK Estate Agents sold 16.11% of their Resi sales stock in Oct ’24. Sept ‘ 24 was 14.79%. 2024 average is 15.86% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs -  For the week 45, Sale Fall Thrus (as a % of Gross sales Agreed) increased to 28.7% (up from 26% last week). This slight uplift is probably down to an additional 600 sales fall thru because f the stamp duty changes. The 7 year Long Term weekly Average is 24.2% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022. Agents lost 5.8% of their sales pipeline in Oct’24 (up from 5.6% in Sept ‘ 24).

· Net Sales - 17k this week (117.8k last week). 13% higher than the same week 45 in 2023, 69% higher than the same week 45 in 2022 & still 17.3% higher YTD in 2024 compared to YTD 2023.

· % of Homes exchanging vs homes unsold - Of the 1,317,167 UK homes that left UK Estate Agents books since the 1st Jan 2024, 705,848 of them (53.59%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 611,319 (46.41%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid.  

· UK House Prices - As explained in the show, the £/sqft figure foretells and predicts the Land Registry 5 months in advance with an accuracy rating of 92%. Final October figures saw a slight jump in this important metric to £346/sq.ft. For comparison - Sept’s £339/sq.ft, August’s £338/sq.ft, and July at £341/sq.ft. This means house prices are slightly growing.

· Resi Sales Stock on the Market (Monthly Stat) : 725k at end of October (up from 724k at end of Sept). For comparison, Oct ’23 - 664k, Oct ’22 - 523k,  Oct ’21 - 425k, Oct ’20 - 681k, Oct ’19 - 652k

· Resi Sales Sold STC Pipeline (Units) (Monthly Stat): 505k at end of October. For comparison, Oct ’23 - 401k, Oct ’22 - 483k,  Oct ’21 - 528k, Oct ’20 - 548k, Oct ’19 - 372k

If you would like to chat about our local property market, feel free to call us on 01604 626 626 or drop us a line at northampton@belvoir.co.uk

Northampton Properties Selling in 35 Days

 

Are you a Northampton homeowner or landlord? Are you thinking of selling your home or property in early 2025?

Then, in this article, let me show you how long it will take, on average, to find a buyer for your Northampton home and how long solicitors will take to get you moved.

Independent research from Denton House Research shows that in the last 12 months, looking at every UK estate agent’s 1,064,223 sales agreed and 816,299 exchanges, on average, it has taken 73 days from the property coming on the market to become sold subject to contract, up from 67 days for the 12 months ending in June 2024.

Then, it has taken 113 days from the sale being agreed to completion (completion is when the keys and monies are sorted), an improvement on the 117 days for the 12 months ending June 2024. The journey is a long one and not guaranteed as nationally, only 53.6% of UK homeowners who placed their homes on the market in 2023/4 have sold and moved (the remaining 46.7% coming off the market unsold).

 

Step 1 – Finding Your Buyer

The first step is to engage an estate agent (naturally, we’re here to assist) who will work with you to develop a pricing and marketing strategy tailored to attract the right buyer for your situation.

Recent independent data reveals that, over the last three months, a property in Northampton has taken an average of 35 days to reach an agreed sale (Sold Subject to Contract). However, as I’ve discussed in my recent articles, the Northampton property market is far from uniform; it’s more like a fly’s eye, with countless small, distinct micro-markets.

Reflecting on this independent research—which focuses exclusively on Northampton—it’s fascinating to observe how these different price segments (or micro-markets) are currently performing when we look at the average time it takes to secure a buyer in the Northampton area. The average time to find a buyer in the last 3 months in Northampton for those properties that have agreed a sale on them is as follows …  

 

(Northampton centre plus a 5-mile radius).

Under £100k - 43 days

£100k to £200k - 33 days

£200k to £300k - 31 days

£300k to £400k - 39 days

£400k to £500k - 42 days

£500,000 to £1m - 62 days

over £1m - 90 days

Then, I analysed the same statistics and determined which price band had the highest ratio of properties sold (STC).

·       Under £100k - 44 sales agreed (SSTC) - 3.31% of the properties Sold STC in Northampton in the last 3 months

·       £100k to £200k - 294 sales agreed (SSTC) - 22.14% of the properties Sold STC in Northampton in the last 3 months

·       £200k to £300k - 574 sales agreed (SSTC) - 43.22% of the properties Sold STC in Northampton in the last 3 months

·       £300k to £400k - 247 sales agreed (SSTC) - 18.60% of the properties Sold STC in Northampton in the last 3 months

·       £400k to £500k - 100 sales agreed (SSTC) - 7.53% of the properties Sold STC in Northampton in the last 3 months

·       £500,000 to £1m - 65 sales agreed (SSTC) - 4.89% of the properties Sold STC in Northampton in the last 3 months

·       over £1m - 4 sales agreed (SSTC) - 0.30% of the properties Sold STC in Northampton in the last 3 months

 

So, you’ve secured a buyer. What happens next?

Selling your property in Northampton brings challenges and involves coordination with a diverse group of professionals. This can result in notable differences in the timeline for completing one Northampton property sale compared to another.

 

Step 2 - Instruct Solicitors (and Mortgage Broker)

We can recommend top solicitors to assist with your Northampton sale. As the seller, your solicitor will start preparing the initial legal documents for your property (with your input) and then forward them to your buyer's solicitor.

 

Step 3 – Legal Work and Survey

After receiving the paperwork, your buyer's solicitor will request local searches from the local authority or land registry to ensure no planned developments, like roads or airports, are impacting your property. These searches can take a few weeks to return, during which the buyer's solicitor may raise questions with your solicitor. Simultaneously, a surveyor will inspect the property to confirm it's structurally sound and valued correctly for the purchase.

 

Step 4 – Exchange of Contracts

Once the mortgage, survey, and legal work are cleared of any issues, both buyer and seller sign the contracts, leading to the "Exchange of Contracts" between solicitors. At this stage, the buyer pays a non-refundable deposit, legally committing both parties to the sale. But wait—there’s still one step to go!

 

Step 5 – Completion 

Completion is when the money and keys are transferred. Typically, this takes place one to two weeks after exchanging contracts (although, since the lockdown, completion can occur on the same day as the exchange). At this point, the buyer's solicitor sends the purchase funds to the seller's solicitor, and once they are received, the keys are handed over to the buyer.

 

In Northampton, it currently takes 35 days to find a buyer (Step 1) and 116 days

from instructing solicitors (Step 2) to completion (Step 5)

 

In summary, you should anticipate waiting five to six months from the day the 'For Sale' board goes up to the day you move out.

 

If you're considering selling your home in Northampton, or you’re a Northampton landlord looking to sell a buy-to-let property with tenants in situ, feel free to reach out. I’d be happy to have an informal, no-obligation conversation to help you secure a good price with minimal hassle. Drop me a message or give me a call.

HOUSING COMPLETIONS SINCE THE 1950’S

 

The story of UK housing completions over the last 70 years is a tale of shifting responsibilities and changing priorities. As this chart shows, local authorities played a leading role in building new homes during the 1950s and 1960s, particularly in the form of council houses.  

However, from the late 1970s onwards, this role diminished significantly, largely due to policy changes and funding cuts. In their place, housing associations emerged, attempting to fill the gap in social housing, but even they rely heavily on government funding to meet their goals. 

Meanwhile, private enterprises have maintained a steady contribution to housing completions, yet it's clear they alone cannot meet the government’s ambitious target of 300,000 new homes per year. To reach numbers comparable to those seen in the mid-20th century, a significant scale-up is required, but who will be responsible for this surge? Who will pay for it? 

Both housing associations and local authorities depend on government resources, and with limited funding, it's uncertain whether they can rise to the challenge.

This raises a pressing question for us locally. If Northampton is to play its part in meeting these targets, where should these new homes be built? We face a complex balancing act between preserving green spaces, ensuring infrastructure can cope, and providing the quality housing our community needs. 

So, I ask: if we must build more homes in Northampton, where should they go?

Northampton Property Market Review: The November 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 626 626. Let's explore the potential of your Northampton property together.

Northampton Buy-to-Let is Dead Long Live the Northampton Buy-to-Let Landlord

 

Future legislation and the recent Budget have stirred considerable anxiety among landlords. The Chancellor's decision to increase the additional Stamp Duty Land Tax (SDLT) from 3% to 5% for landlords purchasing additional properties initially suggested a grim outlook for the buy-to-let sector. This move, coupled with the introduction of the Renters' Rights Act, which proposes to abolish Section 21 and effect a landlord database, poses new challenges for Northampton landlords but also opens doors to new opportunities. Despite these hurdles, deeper market insights reveal reasons for optimism among property investors.

 

Taxation Changes: Assessing the Impact 

The Tory and now Labour government's policy changes towards the buy-to-let market have targeted the buy-to-let sector to cool what is perceived as an overheated property market. By raising the SDLT, the government intends to redirect investment opportunities towards first-time homebuyers priced out of the market. Although this policy aims to level the playing field, it has raised concerns among investors about shrinking profit margins and the overall attractiveness of buy-to-let investments.

Despite these concerns, maintaining the current (lower) capital gains tax rates has provided a buffer, easing investor anxiety and stabilising the investment climate. However, many Northampton landlords remain cautious, aware that the stability of these rates can change as part of broader fiscal adjustments.

 

The Renters' Rights Act: A New Renters Standard

The proposed Renters' Rights Act will abolish Section 21 evictions, which have allowed landlords to terminate tenancies without fault. This change aims to offer greater security to tenants and ensure fair treatment across the housing sector. While this is a positive step for tenant rights, it requires landlords to adopt more rigorous property management and dispute resolution strategies, potentially increasing the cost and complexity of property management. 

Moreover, the act will likely introduce stricter property standards and tenant engagement protocols. These regulations will compel landlords to improve the quality of their offerings and engage more transparently and effectively with their tenants. This shift could drive smaller or less committed landlords out of the market, potentially leading to a consolidation of property ownership within more professional hands.

 

Market Resilience: Northampton's Buy-to-Let Sector

Despite the challenges posed by increased taxation and regulatory changes, the buy-to-let market in Northampton remains resilient. Rental demand in the town continues to grow, driven by its attractive location, relatively affordable housing compared to major urban centres, and its appeal among various demographics, including young professionals, families, and retirees.

An analysis of local rental data over the past five years shows stability and increased rental prices, suggesting that the market can absorb the impacts of taxation changes without a dramatic downturn.

 

The average rent in Northampton in 2024 was £1,103 per month, a 27.5% increase from £865 per month in 2019.

 

Meanwhile, the number of Northampton rental properties on the market has dropped by 20.8%, from 5,938 in 2019 (Jan to Oct 2019) to 4,702 in 2024 (Jan to Oct 2024). (Also, don't forget that national house prices have risen by 25.7% in the last five years!).

One might say that’s all well and good, but what will this extra 2% stamp duty cost the average Northampton landlord? The average price of a Northampton buy-to-let property in 2024 is £185,600, meaning…

 

The average Northampton landlord will only need to pay an additional £3,712, which is only 3.4 months' rent.

 

Adapting Strategies for Landlord Success in Northampton

To navigate this evolving landscape successfully, landlords in Northampton may need to consider several strategic adjustments:

 

• Diversification: Landlords can spread risk and tap into varying demand streams by diversifying their Northampton property portfolios to include a mix of residential types and targeting different tenant demographics.
• Reduction of Rent Arrears: A study by Denton House Research a couple of years ago showed that landlords who don't use a letting agent to find them a tenant have a 272.5% greater chance of that tenant being two or more months in arrears (compared to those landlords who do use a letting agent).
• Enhanced Tenant Relations: Prioritising tenant satisfaction and retention can lead to longer tenancies, reducing turnover costs and maintaining steady rental income streams.
• Rent Protection: The removal of Section 21 will mean Northampton landlords will only have Section 8 to remove tenants if they aren't paying their rent or being antisocial. This could mean that if the tenant decides they don't want to move, there could be a good 6 to 9 months of no rent (if not more). Therefore, you must take on rental insurance.
• Proactive Compliance: Staying ahead of 170+ pieces of legislation and 400+ regulatory orders to ensure your properties meet or exceed the required standards can prevent legal issues and attract Grade A tenants in a competitive market.

 

Final Thoughts for Northampton Landlords

While the initial outlook for buy-to-let investments in Northampton might seem daunting due to recent legislative and fiscal changes, the underlying market dynamics suggest a different narrative. The demand for quality rental properties will likely remain strong, providing opportunities for landlords willing to adapt to the new conditions. By adopting thoughtful strategies and leveraging the intrinsic strengths of Northampton's property market, landlords can continue to thrive.

The evolution of the buy-to-let market in Northampton is not a signal of decline but rather an invitation to innovate and improve. As the sector matures, those who navigate these changes effectively will likely emerge stronger, proving that the buy-to-let market in Northampton is not dying but evolving.

 

UK Property Market Weekly Update for the ending Sunday, 3rd November 2024 (week 44)

 

· Listings (New properties coming on to the market)  - 28.6k UK listings this week (week 44), an expected drop of 1.5k from last week. 8.1% higher 2024 YTD than 2023 YTD.

· % of Resi Sales Stock being reduced (Monthly): 13% of Resi sales stock was reduced in the last month. 14% last month and long term 5 year average 10.6%.

· Total Gross Sales - 24k UK homes sold stc this week (Week 44), 6.9% lower than last week.  17% higher than the same standalone week (week 44) in 2023. Also, 7.4% higher than 2017/18/19 YTD levels & 14.8% higher than 2023 YTD levels.  

· Sale Thru rate (Monthly): UK Estate Agents sold 16.11% of their Resi sales stock in Oct ’24. Sept ‘ 24 was 14.79%. 2024 average is 15.86% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in  mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs - Agents lost 5.8% of their sales pipeline for the month (up from 5.6% in Sept ‘ 24). For the week 44, Sale Fall Thrus (as a % of Gross sales Agreed) increased slightly to 25.9% (up from 24.6% last week). The 7 year Long Term weekly Average is 24.2% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022.

· Net Sales - 17.8k this week (19.5k last week). 17% higher than the same week 44 in 2023, 54% higher than the same week 44 in 2022 & still 17.4% higher YTD in 2024 compared to YTD 2023. 

· % of Homes exchanging vs homes unsold - Of the 1,295,604 UK homes that left UK Estate Agents books since the 1st Jan 2024, 693,669 of them (53.54%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 601,935 (46.46%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid.  

· UK House Prices - As explained in the show, the £/sqft figure foretells and predicts the Land Registry 5 months in advance with an accuracy rating of 92%. Final October figures saw a slight jump in this important metric to £346/sq.ft. For comparison - Sept’s £339/sq.ft, August’s £338/sq.ft, and July at £341/sq.ft. This means house prices are slightly growing.

· Resi Sales Stock on the Market (Monthly Stat) : 725k at end of October (up from 724k at end of Sept). For comparison, Oct ’23 - 664k, Oct ’22 - 523k,  Oct ’21 - 425k, Oct ’20 - 681k, Oct ’19 - 652k

· Resi Sales Sold STC Pipeline (Units) (Monthly Stat): 505k at end of October. For comparison, Oct ’23 - 401k, Oct ’22 - 483k,  Oct ’21 - 528k, Oct ’20 - 548k, Oct ’19 - 372k

 

If you would like to chat about our local property market, feel free to call us on 01604 626 626 or drop us a line on northampton@belvoir.co.uk

 

Where do the Country's Veterans live?

 

This Remembrance Sunday, we pause to honour the courage and sacrifice of those who served in the Armed Forces, defending the freedoms we hold dear. It's a moment to reflect on the deep gratitude we owe to those who made the ultimate sacrifice, as well as to acknowledge the veterans among us who have selflessly served.

Across the UK, the percentage of households with a veteran living within varies by region, a testament to the breadth of service. Here’s how it breaks down by area:

 

• South West: 10.1%
• North East: 8.8%
• Wales: 8.1%
• East Midlands: 7.9%
• South East: 7.8%
• Yorkshire & Humber: 7.5%
• East Anglia: 7.0%
• North West: 6.9%
• Scotland: 6.7%
• West Midlands: 6.5%
• London: 2.8%

 

As we observe Remembrance Day, let's take a moment to remember and thank every veteran, and those who sadly never returned, for their bravery and dedication. Each household marked here represents lives shaped by service and sacrifice, a reminder of the commitment that underpins our communities.

 

How well is your region performing when it comes to EPC?

 

This infographic provides a snapshot of the percentage of homes across twelve UK regions that have achieved the best Energy Performance Certificate (EPC) ratings of A, B, or C. 

EPC ratings measure a property’s energy efficiency, with A being the most efficient. The data reveals a substantial variation in energy-efficient homes across the UK.

 

Ranked in order, the regions with the highest proportion of top-rated homes are as follows:

1. London: 50.2%

2. South East: 48.8%

3. East Anglia: 47.5%

4. South West: 45.8%

5. North East: 45.7%

6. East Midlands: 44.3%

7. North West: 43.7%

8. Scotland: 43.4%

9. West Midlands: 41.8%

10. Wales: 40.4%

11. Yorkshire & the Humber: 39.5%

12. Northern Ireland: 18.5%

 

With early data hinting that homes with higher EPC ratings may fetch slightly higher prices, these figures could become increasingly relevant for homebuyers and sellers.  

While it is still early days, these initial statistics suggest a possible premium for energy-efficient homes, which may encourage both buyers and sellers to consider EPC ratings more closely. 

However, this trend is in its infancy, and further data is needed to confirm a strong link between EPC ratings and property values. If you have any questions about the Northampton property market, feel free to pick up the phone on 01604 626 626.

 

UK Property Market Weekly Update for the week ending Sunday, 27th October 2024

 

Listings (New properties coming on to the market)  - 30k UK listings this week (week 43), an expected drop of 2.5k from last week. 7.5% higher 2024 YTD than 2023 YTD.

· % of Resi Sales Stock being reduced: 14% of Resi sales stock was reduced in the month (long term average 10.6%) 

· Total Gross Sales - 25.8k UK homes sold stc this week (Week 43), 0.9% lower than last week.  24% higher than the same standalone week (week 43) in 2023. Also, 8% higher than 2017/18/19 YTD levels & 14.8% higher than 2023 YTD levels. 

· Sale Thru rate: (NEW MONTHLY STAT) : UK Estate Agents sold 14.79% of their Resi sales stock in Sept ’24. 2024 average is 15.83% & the 7 year long term average is 17.9% per month - yet don’t forget that was only in  mid/late 20%’s in the crazy years of 20/21/22).

· Sale fall-throughs - Agents are lost 5.5% of their sales pipeline for the month. For the week 43, Sale Fall Thrus (as a % of Gross sales Agreed) dropped slightly to 24.6% this week. The 7 year Long Term weekly Average is 24.2% and it was 40%+ in the two months following the Truss Budget in the Autumn of 2022.

· Net Sales - 19.5k this week (19.5k last week). 27% higher than the same week 43 in 2023 & still 17.4% higher YTD in 2024 compared to YTD 2023. 

· % of Homes exchanging vs homes unsold - Of the 1,257,497 UK homes that left UK Estate Agents books since the 1st Jan 2024, 672,347 of them (53.47%) exchanged & completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 585,150 (46.53%) were withdrawn off the market, unsold. In essence you a flip of the coin chance of actually selling, homeowners moving and the estate agent getting paid. 

· UK House Prices - Final September figures suggest a slight jump in this important metric to £340/sq.ft. For comparison - August’s Figures for the Sale Agreed £/sq.ft was at £338/sq.ft, and July at £341/sq.ft. This means house prices are stable.

If you would like to chat about our local property market, feel free to call us on 01604 626 626 or email us at northampton@belvoir.co.uk

 

The Hidden Trap of Overpricing Your Home in Northampton's Property Market

 

In an age of sensational headlines, the UK property market—particularly in Northampton—often finds itself misinterpreted.

While we cannot ignore the challenges of higher mortgage rates and shifting buyer preferences, it is vital to appreciate the broader context to understand what's happening in the Northampton property landscape.

The UK housing market is currently at a junction, characterised by its lowest house price growth in 12 years and a rising number of homes for sale. Higher mortgage rates have made a sizable dent in market activity, affecting everything from buyer demand to the volume of property sales.

Don't get me wrong; Northampton properties are still selling (21.7% more Northampton homes sold per month in 2024 compared to 2023), but not at the rate or level they were in 2021.

Therefore, correctly pricing your Northampton property for sale cannot be underestimated. Let me explain the reasons behind the current state of play nationally and, finally, the exact story of what is happening now (and in the future) in Northampton.

 

The Importance of Correctly Setting an Asking Price for Your Northampton Home

Putting your Northampton home on the open market at an asking price that is too high can considerably deter potential buyers and limit the number of people who come to view it. Buyers always have a budget in mind, and if your property is priced above comparable homes in your area, it's likely to be filtered out of search results and ignored.

Even if your property gets some attention, the inflated price can signal that you're not serious about selling or unwilling to negotiate. This can result in your home languishing on the market, which could necessitate future price reductions.

Over time, buyers will begin to be suspicious that something must be wrong with your property, irrespective of its high price.

Thus, setting a realistic, market-aligned asking price for your Northampton home is vital for attracting a broader pool of qualified buyers and facilitating a quicker, more lucrative sale with a higher chance of actually moving home.

Remember, looking at an independent analysis by TwentyEA and Denton House Research of the 1.1m house sales in the whole of 2023, if the property sells (Sold STC) within the first 25 days of it going on the market, the chances of that sale agreed exchanging and completing (i.e. you moving) is 94%, while if it takes more than 100 days to achieve a sale (often because the initial asking price has been set too high and time is wasted), the chances of that sale subsequently exchanging and completing drops to 56%.

 

The Impact of More Homes for Sale

The UK property market looks promising. Nationally, this year the number of properties sold (STC) was 1,045,620 (to the end of October), 8% higher than the same sales figure to the end of October 2023 (when it was 912,919).

However, there are 724,312 properties for sale in the UK, which is 9.4% higher than at the same time in October 2023, when it was 662,829. It must also be remembered that the figure was 506,614 in October 2022 and 438,005 in October 2021.

There are 65.4% more homes for sale in the UK today compared to 3 years ago.

 

Just Only Half of all UK Homes Put on the Market, Sell and Move

Since 1^st January 2024, of the 1,222,925 homes that left UK estate agents' books, 654,081 (53.5%) exchanged and completed contracts (meaning the homeowner moved and the estate agent got paid). The remaining 568,844 (46.5%) were withdrawn from the market, unsold. In essence, you have a flip-of-the-coin chance of selling, and homeowners moving.

 

Focus on Northampton

In 2021, there were an average of 617 new Northampton properties coming onto the market and 594 Northampton homes sold (STC) each month. The average number of homes for sale in 2021 was 1,898.  

In 2022, there were an average of 654 new Northampton properties coming onto the market and 502 Northampton homes sold (STC) each month. The average number of homes for sale in 2022 was 1,921.

In 2023, there were an average of 695 new Northampton properties coming onto the market and 464 Northampton homes sold (STC) each month. The average number of homes for sale in 2023 was 2,629.    

2024 YTD, there has been an average of 731 new Northampton properties coming onto the market and 564 Northampton homes sold (STC) each month. The average number of homes for sale in 2024 was 2,744.

The volume of properties for sale in Northampton has increased by 44.6% over the past three years. While this surge in available properties hasn't significantly impacted house prices, it is likely the main reason Northampton house price growth has been kept in check.

With more Northampton homes on the market, local buyers now have greater choices and can be more discerning. This often leads to balanced negotiations, and so can moderate rapid house price increases. This dynamic ultimately benefits buyers and sellers, balancing the market and providing fair value across transactions.

Northampton = NN1-NN7.

 

The Costly Trap of Overvaluing: How It Could Affect Your Northampton Property Sale

Starting with a realistic asking price is the most sensible approach if you want to sell your property in Northampton. Overpricing (or, as it's called by some over valuing), where the asking price is set too high, may be tempting, but it often leads to challenges that can delay your sale. Once a property is listed, it has a single chance to captivate buyers as a new instruction—bringing excitement and immediate interest. Miss that window with an overinflated price, and your dream home could slip through your fingers while you wait for a sale that never comes.

In Northampton, we’re seeing an increase in properties priced way above their actual market value—a trend often driven by estate agents focused more on the number of listings than on making actual sales. This approach can harm many Northampton homeowners, initially setting their hopes high with a lofty price, only to later reduce it after losing valuable time and reducing the chances of actually selling their home and moving (as discussed above). This can be disheartening for many homeowners looking to move, especially if it means missing out on another property they have their eye on.

Research from Which reveals that properties priced correctly from the outset sell faster and often achieve a better final price than those that start high and then undergo reductions. Overpricing by as much as 10 to 20% of your property’s actual value can leave it lingering on the market, losing the early buyer attention that often results in successful sales.

Further complicating the issue is that some estate agents incentivise their staff to prioritise listing properties rather than selling them, pushing prices not in line with the market. With the Northampton property market stabilising, setting a realistic price has become even more crucial in attracting serious buyers and ensuring a timely sale.

 

Outlook for the Northampton Property Market

While dramatic house price rises aren't anticipated in Northampton’s immediate future, there’s no significant drop expected either (for more, see my previous articles). Demographic and economic shifts—such as an ageing population, more flexible work arrangements, a strong labour market, and sustained immigration—could contribute to renewed market activity in the coming years. Additionally, base rates are expected to dip below 3.5% by the end of 2025, likely impacting buyer behaviour more noticeably next year.

The British property market faces some challenging conditions, with effects of the budget still to be seen and those fuller mortgage rates affecting affordability. However, the trend of above inflation pay rises that we have seen in the Country over the last 12 months could make homeownership more accessible for many more people in the medium to long term. However, combined with a potential drop in mortgage rates in 2025, wages continuing to outstrip inflation and demographic shifts, these changes could encourage an even healthier and more balanced property market in the next 12 months?

Understanding these trends helps both Northampton buyers and sellers make more informed decisions. Though the market may seem under strain now, Northampton homeowners who set realistic asking prices will be in a strong position as the market looks to become more accessible in the near future. 

If you're in Northampton and considering a move, reach out for a free, no-obligation valuation or market appraisal of your home. I aim to get the best possible price for your property, with advice tailored to give you the greatest chance of a successful sale in today's market.

What is October's Average £ per Square foot?

 

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

The average property presently in is on the Northampton market for £255 per square foot, a figure representing the current heartbeat of Northampton’s property market.

Last month it was £257 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.