Tamworth Road … the road where people move the most in Tamworth!

Many folks say moving home is the most stressful thing.Moving home is like someone (and that someone is usually you and you are the cause of this devastation) has collected all your worldly goods, put them into brown boxes and into a lorry making your whole life look like a Amazon delivery van, only to spend the next six months unpacking it all, whilst unable to find important things like your bank cards, ‘those’ shoes or special jewellery!

We wish we could be instantly transported like in Star Trek “Beam me up Scotty to a blissful moved in state”.  Yet the week you move, it’s like an episode from the original 1960’s series Star Trek, when the crew had a transporter accident with an ion-storm sends Kirk and Spock into an alternate reality, where the caring Federation is the merciless Terran Empire, and the USS Enterprise is a warship and chaos eschews!!!

Star Trek aside, when you decide to move and before the stress of living out of cardboard boxes for months descends; first you trawl the portals (Rightmove/Zoopla/On The Market) to find a new house, which out of the hundreds of properties available to buy, you will probably only view around four or five of them, for no more than 20 minutes each. Then, you will arrange a second viewing of one or two of those initially viewed properties for the estate agency industry stated average of 30/45 minutes maximum (fascinating when you think most people take hours to decide what clothes or shoes to buy but minutes to spend hundreds of thousands of pounds on their next home!).  Then you put your property on the market with an estate agent, find a buyer for your Tamworth property, agree a price for both, then instruct solicitors. The property becomes sold ‘subject to euphuism’ … sorry ‘contract’ … as solicitors and surveyors and mortgage companies pick holes in the paperwork, threatening to wreck the chain at any moment, whilst you can’t get too attached to the property you want to purchase in case the sale falls through … phew – stressful or what??!!

Is it worth it? Worth the stress? The brown cardboard boxes? Well many Tamworth people think so.

In the last 12 months, 629 families have sold and moved home in Tamworth (B77)

Yet the question I want raise is … do people on certain streets in the B77 postcode move more often than others? Well, the answer might surprise you. I looked at the Land Registry for the all the property sales going back 23 years (to 1995) in the B77 postcode whilst also calculating the average value of a property on a particular street/road (to see if there was a correlation between price and moving). So initially looking at the top 10 streets in the postcode, in terms of pure out and out house sales, Tamworth Road is the winner with an average of 22.17 house sales per year (since 1995) as on the graph below.

And to look at the bigger picture, the table below shows the top 25 streets, with the average value of a property on that street.  As you can see, there is no correlation between the average value of a property and the number of times a property gets sold on that street.

Street Average Value of a Property
On that Street/Road
Average Number of
Properties Sold per Year (since 1995)
Tamworth Road £175,855 22.17
Celandine £181,733 11.04
Furness £145,066 10.52
Peel Drive £174,471 10.00
Kettlebrook Road £134,067 9.70
Glascote Road £158,820 8.57
Hockley Road £169,509 8.43
Sycamore £144,656 8.17
Grazier Avenue £172,175 7.30
Brambling £149,886 7.09
Ascot Drive £255,583 7.09
Emberton Way £263,000 7.00
Moor Lane £130,773 7.00
Foxglove £160,665 6.70
Loughshaw £156,628 6.65
Watling Street £134,811 6.78
Lindisfarne £234,523 5.87
Goldsborough £146,119 5.91
Amington Road £153,416 5.87
Wilnecote Lane £161,259 5.61
Quince £138,920 5.57
Greenheart £160,455 5.43
Grassholme £142,813 5.48
Broadlee £253,987 5.30
Valley Drive £204,703 5.13

However, I still felt the information wasn’t telling the whole story … some roads in Tamworth have many more properties on than others, so I wanted to then compare the average number of properties sold by the actual number of properties on that street, to find out the streets whose owners proportionally moved (or sold more often) than the rest of the locality.

In the next article, (and I promise I won’t mention Star Trek again), I will answer that question in great depth … and the results should (as they did me) certainly raise an eyebrow. The question is … do you live on one the top 25 Tamworth most saleable streets in Tamworth (B77)?  

Come back to my Tamworth Property Blog for the next articleto find out!

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

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Tamworth Property Market: Is Sell to Rent the new Buy to Let?

It doesn’t seem two minutes ago that it was 90 degrees Fahrenheit in the shade (32 degrees Celsius for my younger readers), hosepipe bans looked likely and it was simply too hot to sleep at night, yet early indications were, that as the temperatures soared, the Tamworth property market appeared to be doing the reverse and was already starting to cool down.

8.49% less people moved home in the Tamworth area in the first part of 2018, when compared to the average number of people moving home (in the same time frame) between 2014 and 2017

The average number of households who sold and moved locally between 2014 and 2017 in the winter and spring months was 82 homes a month.. yet in the same time frame in 2018, only 75 (on average) sold and moved.

So, what is the issue? Many have cited Brexit as the issue – but I think its deeper than that.

Brexit seems to be the “go to excuse” for everything at the moment – my neighbour even blamed it for the potholes! Anyway a few weeks ago, I was out for a family get together in another part of the UK when one of my extended family said that they were planning on buying their first home this autumn most of those present said they were stupid to do so because of Brexit. Nonetheless, half an hour later, another distant cousin said to the same family crowd that they were planning to sell their home; to which most said they were also daft to do so because of Brexit.

Both sides of the argument can’t be right! So, what exactly is happening?

Well if you have been reading my blog on the Tamworth property market over the last few months, I have been discussing the threats and opportunities of the current state of fluidity in the Tamworth property market, including the issue of OAPs staying in homes that are too big for them as their children have flown the nest, interest rates, inflation, lack of new homes being built and the long term attitude to homeownership.. yet I have noticed a new trend in the last few months.. the emergence of the ‘sell to renter’.

Sell to Renter?

I have seen a subtle, yet noticeable number of Tamworth homeowners that have been selling their Tamworth homes, renting and wagering that, in the next few years, the Tamworth property market will tumble by more than what they spend on their short-term rental home, before they buy another Tamworth home in a couple of years i.e. a ‘sell to renter’. This type of ‘sell to renter’ is mostly predominant at the middle to upper end of the Tamworth property market – so I’m not too sure if it will catch on in the main ‘core’ market?

So, what does this all mean for Tamworth homeowners and Tamworth Buy To Let landlords?

Well, in the short term, demand for middle to upper market Tamworth rental properties could increase as these ‘sell to renters’ demand such properties. I would however give a note of caution to Tamworth landlords buying in this sector of the Tamworth property market as yields in this sector can be quite low. However, for homeowners of middle to upper market Tamworth properties, you might have less people wanting to buy your type of property, as some buyers are turning to renting?

Like I have always said, Tamworth properties are selling if they are realistically priced (realistic for the market – not a rose-tinted version where someone will pay 10% over the odds because everyone has access to the market stats with the likes of Rightmove and Zoopla!).

P.S Notice the spike in the graph, where the number of property sales jumped to 164 in the month of March 2016? That was all the Tamworth buy to let landlords snapping up buy to let properties before the stamp duty rules changed!

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Tamworth Home Owners Are Only Moving Every 20 Years (Part 1)

As I mentioned in a previous article, the average house price in Tamworth is 6.75 times the average annual Tamworth salary. This is higher than the last peak of 2008, when the ratio was 6.21. A number of City commentators anticipated that in the ambiguity that trailed the Brexit vote, UK (and hence Tamworth) property prices might drop like a stone. The point is – they haven’t.

Now it’s true the market for Tamworth’s swankiest and poshest properties looks a little fragile (although they are selling if they are realistically priced) and overall, Tamworth property price growth has slowed, but the lower to middle Tamworth property market appears to be quite strong.

Scratch under the surface though, and a different long-term picture is emerging away from what is happening to property prices. Tamworth people are moving home less often than they once did. Data from the Office of National Statistics shows that the number of properties sold in 2016 is again much lower than it was in the Noughties. My statistics show…

 

The Total Number of Property Sales Per Annum in the Tamworth

Borough Council Area Since 1995

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
1,236 1,358 1,569 1,543 1,673 1,642 1,543 1,756 1,480 1,566 1,331
                     
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
1,667 1,629 833 682 616 711 716 834 1,061 1,003 1,084

 Even though we are not anywhere near the post credit crunch (2008 and 2009) low levels of property sales, the torpor of the Tamworth housing market following the 2016 Brexit vote has seen the number of property sales in Tamworth and the surrounding local authority area level off to what appears to be the start of a new long term trend (compared the Noughties).

Interestingly, it was the 1980’s that saw the highest levels of people moving home. Nationally, everyone was moving on average every decade. Even though it was during the Labour administration of the late 1970’s where the right to buy one’s council house started, it was the Housing Act of 1980 that that really got council tenants moving. Thatcher’s Tory government financially encouraged council tenants to buy their council-rented homes – for which countless then sold them on for a profit and moved elsewhere. The housing market was awash with money as banks were allowed to offer mortgages as well as the existing building societies, meaning it made it simpler for Brits to borrow even more money on mortgages and to climb up the housing ladder.

But coming back to today, looking at the property sales figures in the Tamworth area since 2010/11, a new trend of number of property sales appears to have started. Interestingly, this has been mirrored nationally. The reasons behind this are complex, but a good place to start is the growth rate of real UK household disposable income, which has fallen from 5.01% a year in 2000 to 1.68% in 2016. Also, things have deteriorated since the country voted to leave the EU as consumer price inflation has risen to 2.7% per annum, meaning inflation has eaten away at the real value of wages (as they have only grown by 1.1% in the same time frame).

With meagre real income growth, it has become more difficult for homeowners to accumulate the savings needed to climb up the housing ladder as the level of saving has also dropped from 4.26% of household income to -1.11% (i.e. people are eating into their savings).

Next week I will be discussing how these (and other issues) has meant the level of Tamworth people moving home has slumped to once every 20 years.

If you enjoyed reading my article, feel free to take a look my other online resources below:

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