More Than Eighteen Babies Born for Every New Home Built in the Past Five Years in Tamworth

More than 18 babies have been born for every new home that has been built in Tamworth since 2012, deepening the Tamworth housing shortage.

This discovery is an important foundation for my concerns about the future of the Tamworth property market – when you consider the battle that todays twenty and thirty somethings face in order to buy their first home and get on the Tamworth property ladder. This is particularly ironic as these Tamworth youngsters’ are being born in an age when the number of new babies born to new homes was far lower.

This will mean the babies being born now, who will become the next generation’s first-time buyers will come up against even bigger competition from a greater number of their peers unless we move to long term fixes to the housing market, instead of the short term fixes that successive Governments have done since the 1980’s.

Looking at the most up to date data for the area covered by Tamworth Council, the numbers of properties-built versus the number of babies born together with the corresponding ratio of the two metrics …

 

It can be seen that in 2016, 7.68 babies had been born in Tamworth for every home that had been built in the five years to the end of 2016 (the most up to date data). Interestingly, that ratio nationally was 2.9 babies to every home built in the ‘50s and 2.4 in the ‘70s. I have seen the unaudited 2017 statistics and the picture isn’t any better! (I will share those when they are released later in the year).

Our children, and their children, will be placed in an unprecedented and unbelievably difficult position when wanting to buy their first home unless decisive action is taken. You see it doesn’t help that with life expectancy growing year on year, this too is also placing excessive pressure on homes to live in availability, with normal population growth nationally (the number of babies born less the number of people passing away) accumulative by two people for every one home that was built since the start of this decade.

Owning one’s home is a measure many Brits to aspire to. The only long-term measure that will help is the building of more new homes on a scale not seen since the 50’s and 60’s, which means we would need to aim to at least double the number of homes we build annually.

In the meantime, what does this mean for Tamworth landlords and homeowners? Well the demand for rental properties in Tamworth in the short term will remain high and until the rate of building grows substantially, this means rents will remain strong and correspondingly, property values will remain robust.

If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment. For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01827 425195, you can always email me on  Lorraine@hallandthompson.co.uk

https://www.Tamworthpropertyblog.co.uk

https://www.facebook.com/hallandthompsonestateagents

http://www.youtube.com/channel/UCyF9OUR3g6E8HywCx7tU4DA

https://www.linkedin.com/in/lorrainethompson2/

Tamworth Property Market – Asking Prices Up 10.5% in the Last 12 Months

 

The average asking price of property in Tamworth increased by 10.5% or £24,289 compared to a year ago, with particularly good demand from landlords and home-movers in the first few months of the year. This takes the current average asking price to £254,954, compared with £230,665 this time last year.

The rise in asking prices is being aggravated by buyers jumping into action looking to benefit from potential stamp duty savings (especially first-time buyers) or beat impending mortgage interest rate rises later in 2018. Of the numerous Tamworth buyers starting their property hunting in the usually active spring market this year, many face paying even more than ever for the property of their dreams, although as I mentioned a few weeks ago, there are more properties for sale in Tamworth compared to 12 months ago.

Looking at the different sectors of the Tamworth property market, splitting it down into property types, one can see what is happening to each sector of the market with regard to their average asking prices now compared to a year ago. Firstly, looking at the Pound note amounts …

Interestingly, when one looks at the percentages, the most upward average asking price pressure is in the terraced and semi-detached property type sectors, with both first-time-buyer and second-time-buyer properties at new Tamworth asking price highs.

Now, I must stress this growth in the asking prices of Tamworth property doesn’t mean the value of Tamworth property is going up by the same amount … nothing could be further from the truth.  Only time will tell if the current levels of Tamworth asking prices is a catch-up abnormality after a couple of months of restrained asking price rises in the first few months of 2018, or is it an initial sign that we are in for a better 2018 Tamworth Property market than all of us were expecting at the start of the year?

I believe these asking prices must be viewed with a pinch of salt, as it will be fascinating to see whether Tamworth properties actually sell at these higher asking prices. Just because house sellers (be they owner-occupiers or landlords liquidating their assets) are asking for more money it doesn’t mean buyers will be enthusiastic to part with their hard earned cash. Like my Mum and Dad used to say to me all those years ago, “You can ask … but you might not get”.

Also, Tamworth homeowners and landlords wanting to sell their property need to be aware of progressively strained buyer mortgage affordability and the more those sellers increase asking prices, the more buyers will hit their maximum on the amount they are able borrow on a mortgage.

However, those Tamworth buyers who need a mortgage (be they owner-occupier or landlord), will paradoxically benefit from lower mortgage payments before interest rates rise … maybe another reason for the uplift in the number first time buyers and landlords buying? Only time will tell!

Want to know where those Tamworth buy to let bargains are?  Follow my Tamworth Property Blog or drop me an email because irrespective of which agent you use, myself or any of the other excellent agents in Tamworth, many local landlords ask me my thoughts, opinion and advice on what (and not) to buy locally … and I wouldn’t want you to miss out on those thoughts … would you?

If you want to learn about the Tamworth Property Market , one source for information is the Tamworth Property Blog authored by yours truly at https://www.tamworthpropertyblog.co.uk

https://www.facebook.com/Hallandthompsonestateagents/

https://www.youtube.com/channel/UCyF9OUR3g6E8HywCx7tU4DA

https://www.linkedin.com/in/lorrainethompson2/

http://www.hallandthompson.co.uk

https://twitter.com/hallandthompson

361 First Timer Buyers in Tamworth Bought Their First Home in 2017

A little bit of good news this week on the Tamworth Property Market as recently released data shows that the number of first time buyers taking out their first mortgage in 2017 increased more than in any other year since the global financial crisis in 2009. The data shows there were 361 first time buyers in Tamworth, the largest number since 2006.

I expect in 2018 that this increase of first time buyers will level out and maybe dip slightly as, nationally, figures demonstrate that first time buyer’s average household income was £40,691 and this represented 17.3% of their take home pay. Although, it might surprise readers that it is actually cheaper to buy than it is to rent at the ‘starter home’ end of the housing market. Many of you can remember mortgage rates at 12% … even 15%. Today, at the time of writing this article, I found on the open market, 189 first time buyer mortgages at 95% (meaning only a 5% deposit was required) with 3 year fixed rates from a reputable High Street bank at 2.49% … they even did a 3 year fixed rate 100% mortgage for 2.89%!

Interestingly, looking at the other end of the market, the buy-to-let investment in Tamworth was subdued, with only 74 buy-to-let properties being purchased with a mortgage. However, I must stress, whilst there is no hard and fast data on the total numbers of landlords buying buy-to-let, as HM Treasury believes only 30% to 40% of buy-to-let property is bought with a mortgage. This means there would have been further cash only buy-to-let purchases in Tamworth – it’s just that the data isn’t available at such a granular level.

In terms of the level of mortgage debt in Tamworth, looking specifically at the B77 to B79 postcodes, there has been a steady rise in borrowing over the last couple of years.

This is pleasing to see, as new mortgage debt is created by first time buyers, buy-to-let landlords and home movers themselves, that is being roughly equalled by the amount being paid off with mature mortgaged homeowners in their 50’s and 60’s finally paying off their mortgage.

So, what does all this mean for the Tamworth Property Market?  Well, the stats paint a picture, but they don’t inform us of the whole story. The upper end of the Tamworth property market has been weighed down by the indecision around the Brexit negotiations and rise in stamp duty in 2014, when made it considerably more expensive to buy a home costing more than £1m. The middle part of the Tamworth property market has been affected by issues of mortgage affordability and lack of good properties to buy, as selling prices have reached the limit of what buyers can afford under existing mortgage regulations. The lower to middle Tamworth property market was hit by tax changes for buy-to-let landlords, although this has been offset by the increase in first time buyers.

If you are in the market and selling now and want to ensure you get your Tamworth property sold, the bottom line is you have to be 100% realistic with your pricing from day one and you might not get as much as you did say a year ago (but the one you want to buy will be less – swings and roundabouts?). I know it’s not comfortable hearing that your Tamworth home isn’t worth as much as you thought, but Tamworth buyers are now unbelievably discerning.

So, if you are thinking of selling your Tamworth property in the coming months, don’t ask the agent out a few days before you want to put the property on the market, get them out now and ask them what you need to do to ensure you get maximum value in the shortest possible time. I, like most Tamworth agents, will freely give that advice to you at no cost or commitment to you.

if you would like to read more articles on my thoughts on the Tamworth property Market – please visit the Tamworth Property Market Blog

If you want to learn about the Tamworth Property Market , one source for information is the Tamworth Property Blog authored by yours truly at https://www.tamworthpropertyblog.co.uk

https://www.facebook.com/Hallandthompsonestateagents/

https://www.youtube.com/channel/UCyF9OUR3g6E8HywCx7tU4DA

https://www.linkedin.com/in/lorrainethompson2/

http://www.hallandthompson.co.uk

https://twitter.com/hallandthompson

How to prepare your Tamworth home for photographs

Yes, it is true. A photo speaks a thousand words. Great photos attract buyers whereas poor photos can put buyers off.

At Hall & Thompson, we believe in clear photography that shows off the whole room. Here are a few of our top tips to help you get ready for your photo shoot!

The kitchen

Declutter your workspaces and clear away anything stored on top of kitchen cupboards. Get rid of the bin! Ensure the hob is clean and find a hiding place for the dish drainer and scouring pads.
Why not add fresh flowers or a bowl of fruit. 

The bathroom  

Remove spare toilet rolls, razors and toothbrushes.
Put down the toilet seat, hide shampoo bottles and bath toys. .  Remove grime limescale that has built up and grout.
Display fresh towels.                       

The bedroom’s

Clear away any clutter including anything that is stored on top of wardrobes. Bedside tables should be clear of clutter, ever heard of the term less is more!
Try dressing your bed with nice linen and add a touch of luxury with quality cushions.

General areas

Ensure all curtains and blinds are open. Clean your windows.  Store old shoes in plastic boxes with lids.  De-personalising the house by removing other personal effects, ornaments etc. Tidy away the kids toys and if possible, move pet paraphernalia and litter boxes to a garage or shed. Why not ask a relative or friend to look your pets while viewings are taking place.

Outside your home

Move your car from the drive or house front. Tidy the garden and move the wheelie bins out of sight. Put up hanging baskets to add colour and if you have a garden, plant some seasonal  bedding flowers.

Our team’s favourite tips – How to prepare your home for photos!

Jody's tips
Jody’s tips

Switch on lights.  A lamp can brighten up a  gloomy corner and add atmosphere to a room.  See how lighting transforms a room! Add  bedside lamps to make your bed the focal point of your bedroom. Make sure each room in your house has a purpose. Buyers want to envisage their belongings in your home. Clean up by renting a storage unit for knickknacks, photos, extra furniture and other personal items.

Lorraine's tips
Lorraine’s tips

If you want to use scent to help sell your home, try using a hint of a single-note organic one such as: orange, lemon, vanilla, cinnamon, or cedar.

When you’re in the  estate agency business, you want someone to walk in and want to stay in the house. You want the home to feel familiar and welcoming. Sometimes it may take more than one visit  to decide to buy a home  so you  want to encourage people to feel at ease and want to revisit.

Jackie's tips
Jackie’s tips

Make sure your home feels
warm and inviting when buyers come around.  If it’s chilly outside put your heating on a timer so it switches on an hour before they arrive.  Buyers love the glow of a fire in the winter so if you have a fire, switch that on a few minutes before the buyer is due. Fit brighter light bulbs and mend that broken light switch or socket.

And lastly, make yourself scarce when your agent arrives.

If you would like any help in how to prepare your home for photos, please get in touch. We would love to help. We can create a bespoke plan just for you, which is ultimately designed to help your home attract a buyer easier, and at a better price.

info@hallandthompson.co.uk

http://www.facebook.com/Hallandthompsonestateagents/ww

w.youtube.com/channel/UCyF9OUR3g6E8HywCx7tU4DA

http://www.hallandthompson.co.uk