This interesting question was posed by one of my Northampton landlord’s teenage daughters when they dropped into my offices before the Christmas break (doesn’t that seem an age away now?).
I didn't know the answer off the top of my head, yet
I promised I would find out. So, over the Christmas holidays, I worked out the
total value of all the properties in Northampton and, just for a bit of fun, worked out how much they have gone up in value
since his daughter was born in the autumn of 2010.
In
the last 14 years, the total value of Northampton property has increased by 65%,
or £9.748 billion, to £24,745,931,859 (or £24.745 billion).
Interestingly, the FTSE100 stock market has only risen by 38.5%. When I compared it to inflation (i.e. the UK Retail Price Index), this had risen by 51.1% during the same 14 years.
When I looked deeper into the numbers,
The
average price currently being paid for
a Northampton home stands at £278,571.
(Northampton being, for this exercise, all homes within a 5-mile radius of the town centre and the average price paid in the last three months).
But regular readers of my Northampton property market blog articles know me. I wasn't going to stop there, so I split the property market down into the individual property types in Northampton. The average numbers come out like this.
The Northampton property market reveals
an intriguing dynamic when comparing the total value contributions of different
property types.
· Detached houses have an average value of £445,249 and a total of £8.806
billion.
· Semi-detached
houses, with an average value of £275,311, contribute £7.229 billion.
· Terraced
and townhouses, averaging £230,655, collectively amount to £6.483 billion.
· Apartments,
with an average value of £143,678, still contribute a substantial £2.226 billion.
This
remarkable growth in property values over the past decade and a half reflects
the fundamental strength of Northampton's property market. But what does this
mean for homeowners, homebuyers, and landlords as we move into 2025 and beyond?
The Northampton property market remains underpinned by several key factors that ensure its resilience, even amid broader national and global economic uncertainties. Property ownership continues to be a stable and rewarding long-term investment for Northampton homeowners, buyers and landlords. While market conditions may fluctuate in the short term, history has shown that property values in Northampton tend to weather these ups and downs and emerge stronger over time.
A Growing Rental
Market in Northampton
For
landlords, the rental market in Northampton remains an area of significant
opportunity. Demand for rental properties is robust, driven by population
growth, changing lifestyle preferences, and continued interest in the area from
those seeking a quieter pace of life (compared to major cities). This demand
keeps rental yields steady, offering landlords a reliable income stream and the
potential for capital growth.
As Northampton continues to attract young professionals and families due to its excellent transport links, quality schools, and a sense of community, the appetite for quality rental homes remains strong. For landlords considering expanding their portfolios, now may be an excellent time to explore options in Northampton's semi-detached or terraced housing market (even apartments if the service charge is reasonable), which provides a good balance of affordability and rental potential.
Supply and Demand of
New Homes in Northampton
Another reason for optimism is Northampton's persistent undersupply of new housing. I know some of you will say some parts of Northampton have looked like a building site for months, yet the fact is, we aren't building enough new homes in the town. With demand consistently outstripping supply, property values are thus supported, reducing the likelihood of significant price drops.
Borrowing Costs to Buy
Northampton Homes
Although
interest rates are higher compared to recent years' historic lows, they remain very
manageable by historical standards. For those looking to buy their home in Northampton,
this can still represent an opportunity to secure a mortgage and move up the
property ladder.
Meanwhile,
the Bank of England's continued efforts to stabilise the wider British economy
offers hope that rates may drift
downwards, further boosting buyer confidence. Beyond the financial figures, Northampton
has a lot to offer. Continued investment in local infrastructure, schools, and
public amenities enhances its appeal as a place to live, work, and invest.
As
always, navigating the Northampton property market can be complex. Whether
you're considering buying, selling, letting, or even investing in buy-to-let,
making informed decisions is essential. If you'd like to discuss your property
related goals or have questions about the Northampton property market, I'd be
happy to help. My door is always open for a no obligation chat.
