Leamington Spa & Warwick Property Market Update

Leamington Spa & Warwick Property Market Update

Leamington has always been a town which benefits from its central location, just a short drive from Stratford-upon-Avon, Warwick, Kenilworth and Coventry, Leamington is also well-connected by rail to business hubs including London and Birmingham.

Let’s start with some fun facts

Overall prices have continued to grown by 0.7% since the end of April.

An average price per square foot for property in Leamington is currently between £300 and £400 depending on condition and location.

There has been a shift in the most expensive roads in Leamington, previously held by Northumberland Road and Cloister Crofts

The top 3 best selling streets in Leamington are measured by the proportion of sales in the last 5 years versus the amount of houses in the street.


top the bill Was Gullimans Way at 61% of homes in the road changing hands in the last 5 years
Chapman Close – 58%
Clapham Street –  55%

Watch this video to find out more

Strong local employment is also a major draw, with Jaguar Land Rover and Aston Martin both based nearby, as well as the National Grid, Warwick University and a host of digital media companies.

Streets including Lansdowne Circus, Binswood Avenue and Milverton Terrace, typified by large Georgian and Regency homes, are highly sought after among young professionals and families. Our analysis of listings data shows a gradual rise in the number of properties listed for sale over the last year, particularly at the top end. Leamington’s strong track record of house price growth and the appeal and convenience of town centre living should help underpin prices and activity going forward.

The underlying economic environment also remains favourable, with buyers able to take advantage of historically low interest and mortgage rates.

Having lived in Leamington all of my life, I know why it was voted the happiest town to live in the UK. I love the surroundings, the shops, the countryside, the villages, the restaurants……its such a great place to bring up my family…I will never move out of this area.

So I hope you enjoyed watching this video, and if I can help you answer any further property questions, please call me on the number at the end.

If you need me to answer any other property related questions regarding your home, please call me on 07989 596836.

Visit our blog: https://rugbypropertyblog.co.uk/ to learn more about Rugby Property market or you may listen to our podcast below:

How to sell your home FAST, and for more money

There are 3 principles that work when selling a home – Presentation Price and Promotion. Decisions house sellers make on these principles can avoid underselling their home.

Preparing your home for viewers and making the right choice of estate agent, will not only ensure your property is sold faster, but can potentially add thousands of pounds to its value.

Let’s start with Preparation

Watch this video to find out more

Declutter

  • Get rid of all the excess stuff that has accumulated in every nook and over the year. Use the garage or your loft or give it to a friend
  • People need to imagine what the property would look like if they were living there – so make it easy for them to see all the fantastic living space you’re offering
  • Consider removing any bulky furniture that makes the room feel small and replacing it with smaller furniture into storage or the garage.

A fresh lick of paint

  • Giving your walls a fresh lick of neutral paint will make your home seem lighter and bigger
  • It will enable the viewers to imagine how they would adapt the rooms to their needs
  • It will be easier for the buyers to move in and use the rooms immediately than if the walls were bright purple or lime green
  • Create a good first impression – the garden gate to the front door

Fix and clean

  • Make any minor repairs necessary – holes in walls, broken door knobs, cracked tiles, torn or threadbare carpets. The majority of buyers want to move in without making changes.
  • Clean everything until it sparkles. Get rid of limescale, clean and repair tile grout, get rid of all odors, hang up fresh towels.
  • Moving out to the garden: cut bushes back, clean the patio and furniture of lichen and dirt, and cut the grass. While this doesn’t add much value to your home it makes it more likely to sell as people visualise downtime

Light and airy

  • Mirrors make a room look much bigger and lighter. Consider putting some up, especially in smaller rooms or hallways
  • Clean windows inside and out, and replace any broken light bulbs. Making the place feel light and airy makes rooms feel bigger and the property more attractive
  • Ensure that you have lamps on in any dark corners

Make it look pretty

  • Plants and flowers bring colour, life and light to a room and also smell wonderful. So does that fruit bowl on your kitchen counter

Get the right smells

  • Bad smells are the single biggest turn off for prospective buyers. Don’t just cover them up, fix the source of the smell. Conversely, good smells can make a property feel alluring. Clear drains, wash bins, open windows and air the kitchen from old cooking smells.

Promotion

Only ever choose the agent who can demonstrate the most marketing techniques and tools to attract the highest number of buyers. Afterall, more buyers equal more viewings equals higher bids.

The photo’s need to be professional to showcase your home in the best possible way. Ask the agent to show their examples of photography.

Virtual reality viewings are becoming more popular and floorplans are a must.

One very important marketing tool is video. Ask your agents to show you what videos they have recently promoted. Video is a great way to sell the lifestyle of living at the home to buyers – something pictures and floorplans cant.

In this new age of social media, more and more buyers are locating the property on platforms such as Facebook, Instagram, and LinkedIn. Videos are the new commodity to sell homes – if a picture tells a thousand words, then a video tells a thousand pictures.

  • Showing the property
  • You chose a great estate agent – so let them show the property
  • It’s an agents job to know what things to say and what to highlight – great agents are trained with techniques to deal with objections and extracting offers
  • On the other hand…when buyers are shown homes by the owner, buyers compliment everything! – this is known in the UK as being polite. Owners are often left unnecessarily optimistic and the buyer disappears – never to be found again

Price

  • Choose the agent who can demonstrate the most experience, research, evidence and facts, when it comes to pricing your home. That is the agent who knows the most about your area. There is a wealth of information the agent should be showing you – the homes you are currently competing with – evidence of sold homes in your area – size comparisons – and their own local results.
  • Don’t be romanced by the agent with the highest asking price when it comes to choosing which agent to use.
  • The marketing price of the home is very important as 40% of properties reduce in price according to my local rightmove statistics
  • Rightmove also demonstrates that if a home doesn’t sell in the first 4 weeks, the interest severely drops and often doesn’t sell. The home then reduces its asking price to then create new interest.
  • What happens then is buyers will see that the home has reduced its price and can be forgiven for thinking the home hasn’t sold because of lack of interest or there is something wrong with the home…this is then often reflected in the offers the home and the home sells for less than getting the price right the first time.

So these are all of the tips we can give you for selling your home faster and make it more valuable, thank you for watching the video – Im Brendan Petticrew, reporting for Newman Property Experts

If you need me to answer any other property related questions regarding your home, please call me on 07989 596836.

Visit our property podcast to learn more  below:

Rugby Town – is the housing market depressed or booming?

Rugby Property Market Update

It is always important to understand what is going on in the local housing market. As part of our ongoing service to you, please watch, listen or read our local housing trends in Rugby Town.

We can also have a bit of fun, comparing our area to the UK as a whole.

I’m Brendan Petticrew, author of this blog, based and working out of Rugby – the home of our Newman Property Experts Head Office HUB.

So…..what’s been happening?

Watch this video to find out more

The national average house price of a property across the UK was £226,798 in the year to March 2019, this is 1.4% higher than a year ago. East and West Midlands have climbed above the national average at and increase of 3.9% and 3.2% respectively.

The majority of sales in Rugby during the last year were detached properties, selling for an average price of £368,530. Semi-detached properties sold for an average of £230,656, with terraced properties fetching £188,666.

Rugby, with an overall average price of £263,785, was similar in terms of sold prices to nearby Hillmorton (£268,127), but was cheaper than Bilton (£290,718) and Cawston (£301,108).

Overall sold prices in Rugby (including CV23) over the last year were 8% up on the previous year and 22% up on the 2016 level of £215,938. Prices have risen by 41% over the last 5 years!!!

What type of homes have made up the moving population?

Well – 9% of all transaction were apartments, 21% terraced houses, 33% semi-houses and 38% detached homes (probably because of the new build sites predominantly lead with these type of homes in our area.

So what does it mean for the house prices of the future, well many commentators will point towards what happens in the economy and what happens with the “B” word. I have been working in the industry for the last 25 years and have identified that the main reason that prices keep rising in our areas is the basic principle…..supply and demand. On this day, according to Rightmove, there are only 297 homes in Rugby (not including new build). There are currently 453 homes sold subject to contract – so you can see there are more buyers than sellers.

Lets hope this momentum in the market place continues for you and your biggest investment.

If you need me to answer any other property related questions regarding your home, please call me on 07989 596836.

You may listen to our podcast below:

New Home Building in Rugby 2018 rises to 16.2% above the post Millennium average

Nationally, the number of new homes created in 2018 was 222,194, the highest since 1989. Yet since 2002, the average number of properties built in the UK has only been 146,700 per year. You would think, seeing all the new homes sites around, you could ask are we building too many houses, especially off the back of those impressive 2018 build figures? However, to keep up with the ever-growing population, lifestyles and people living longer, official reports state the Country actually needs 240,000 new homes built every year to just stand still.

It is estimated, by the Chartered Institute of Housing, that the current national backlog of new homes required is in the order of 4.7 million (i.e. because of the bottled-up household formation by younger adults living with parents, shared housing and unaffordability). As a Country, we cannot meet all these needs immediately and it will take time to build up an effectual plan to address these issues.

Looking closer to home, you will also see from the graph below the long-term trend of new homes building (the yellow dotted line) has been going in a downward direction. Although, the 2018 new homes build stats for Rugby are 16.2% above the post Millennium average.

The cure is simple: we need more homes… yet who is going to build (and pay) for them. Some Rugby people will say why can’t the local authority build most of them?

In 2018, 578 new dwellings were created in the Rugby Council area and of those 578; interestingly 23 were Council and Housing Association homes

So, if our local authority had a more ambitious annual target of say an additional 500 homes on top of those figures, where could they be built and how would they be paid for? Of course, there are the normal apprehensions about infrastructure issues such as roads, schools, hospital capacity and doctors’ surgeries but our local authority has a Local Plan and that has the locations of where they envisage the new housing will be built (and the infrastructure that goes with it).

The Tories lifted the cap on what local authorities could borrow to build Council houses in late 2018 meaning Councils could borrow more money to build more Council houses. Let’s say we built those 500 homes a year for the next 5 years in Rugby, that would cost the local authority £375 million to build, which would produce in total £17.4 million in rent. At current interest rates, the interest would be £9.5m per year leaving a surplus of £7.9m for property maintenance and management – meaning the Council houses pay for themselves!

Therefore, what does all this mean for Rugby homeowners and Rugby buy-to-let landlords?

Well, the chances of our local authority getting the full funding for an extra 500 homes a year is slim as there is only so much money to borrow. If every UK local authority got funding for 500 additional homes a year for the next 5 years, an impressive 867,500 homes would be built in those 5 years but that would require the councils to borrow £130.1bn – and Central Government doesn’t have that kind of money for Councils to borrow (more like £10bn to £15bn).

The 4.7million long term housing shortage means house prices will remain strong in the long term (despite blips like Brexit etc). Demand for private rental properties will continue to grow and if you read my recent article on Rugby rents, this can only be good news for Rugby landlords. This attention on the housing crisis by the Government is good news for all Rugby homeowners and Rugby buy to let landlords, as it will encourage more fluidity in the market in the longer term, sharing the wealth and benefits of homeownership for all. However, in the short term, demand still outstrips supply for homes and that will mean continued upward pressures on rents for tenants and stability on house prices.

Rugby Buy To Let Annual Returns Hit 12.18% in Last 10 Years

Many Rugby people ponder the best places to invest their hard-earned savings and the best piece of advice I can give you is to do your homework and speak to lots of people. It depends on your attitude to risk versus reward. Normally, the lower the risk, the lower the reward whilst a higher risk is normally associated with the possibility of higher returns, yet nothing is guaranteed. At the same time, higher risk also means higher possible losses on your investment – yet if one looks at the bigger picture, the biggest threat to investing, predominantly when the investment is made in the short term, isn’t risk but actually volatility.

So where should you invest? Building society, the stock market, gold or property are options. This article isn’t designed to give you advice – just show you how different investments have performed over the last decade.

Let me start with the humble semi-detached house in Rugby … which in 2009 was worth £157,300 … so assuming I bought that property for that figure, then I looked at what if I had invested the same amount of money in a building society, into gold and finally the stock market…

Putting your money into the stock market (FTSE100) would have brought a return of 30.2% on your capital over those 10 years and an average of 3.79% a year in dividends (making an overall increase of 74%).

Gold doesn’t earn interest – yet it has increased in value by 26.9% over the same 10 years whilst putting your money in the building society, the money hasn’t increased in value, but would have earned you interest of 24.46% or the equivalent of 2.21% per year.

Investing in an average semi-detached house in Rugby over the last 10 years has seen the capital increase by 50% (an equivalent of 4.14% per annum) and the income (i.e. the rent) has provided a return, based on the original purchase price, of 116.78% or the annual equivalent of 8.04% … meaning the overall return, based on the original purchase price of an average semi-detached property in Rugby, is 12.18% per annum.

Notwithstanding No.11 Downing Street’s grab at the profits of buy to let landlords by hitting the buy to let sector with several fiscal punishments with a 3% stamp duty level, a decrease in high rate tax relief for landlords and an increase in rate of CGT on residential property profits, the facts remain that ‘bricks and mortar’ is still one of the preeminent and most constant investments available.

The bottom line is, the buy to let investment remains the mainstay of the British property market, serving to support aspiring homeowners as they work to conquer the, sometimes difficult, financial obstacles of home ownership. With Central Government over the last 30 years only paying lip service to address the lack of new homes being built or tackling the affordability on a consequential scale, it is highly probable this will continue for the next 5/10/15 years as there will always be a call for a respectable, and above all, honest buy to let landlords delivering decent housing to those that need it.

Which Rugby Properties are Selling the Best?

Moving home is said to be the third most stressful life event, following a member of your family dying or getting divorced. So it is always best to keep your stress levels down by investigating and doing your homework on both the particular area of Rugby (or nearby conurbations) where you live (i.e. where you are selling) and where you want to search for your next Rugby home. Being mindful of how fast (or slow) the different aspects of the Rugby property market is moving is key.. because it could save you much heartache and many thousands of pounds.

You see, if you know you are selling a property in a sluggish price range and buying in a faster moving price range in Rugby then putting your property on the market first is vital, otherwise you will always find the one you want to buy tends to sell before your property sells – there is nothing worse than pondering over a property only to find that someone else has bought it. Being primed with all the knowledge is key. On the other side of the coin, if you are selling in a fast moving market and buying in a sluggish market .. you can probably get a better deal on the one you are buying.

For buy to let landlords in Rugby, this evidence is particularly critical as purchasing a high-demand property in a well-liked area of Rugby will safeguard a surfeit of availability of tenants, as well as respectable house price growth. 

Being an agent in Rugby, I like to keep an eye on the Rugby property market on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Rugby; be that a buy to let property for a landlord or an owner occupier house.  So, I thought, how could I scientifically split the Rugby housing market into sections, so I could analyse which part of the Rugby property market was doing the best (or the worst).

I took the decision that the preeminent way was to fragment the Rugby property market into roughly four uniform size price bands (in terms of properties for sale). Each price band would have roughly around 25% of the property in Rugby available for sale .. then add up all the sold (stc) properties and see which sector of the Rugby property market was performing best? … And these were the results ..

The best performing price range in Rugby is the lower market up to £200,000 where 61.0% of all property in that price range has a buyer and is sold stc.

 

The best performing price range in Rugby is the lower market up to £200,000 where 61.0% of all property in that price range has a buyer and is sold stc.

The middle to upper range of the property market (£280,000 to £360,000) in Rugby is finding things a little tougher compared to the others. Even though the number of first time buyers in 2018 did increase over the 2017 levels, it was from a low starting point and the large majority of 20 to 30yo’s don’t want to or can’t buy their first home and the local authority has no money to build Council houses meaning an increase in demand as private landlords take up the slack – because everyone needs a roof over their head!

If you would like to pick my brains on the Rugby Property Market – pop in for a coffee or drop me a line on social media or email.

What Has Happened to the Rugby Property Market Since the Last Property Market Crash?

A handful of Rugby landlords and homeowners have been asking me what would happen if we had another property crash like we did in 2008/9?

The UK property crash in 2008/9 caused property prices in the UK to drop by an average of 18.37% in a period of 16 months.

On the run up to the Parliamentary vote on Brexit scheduled for March, a number of people asked what a no-deal Brexit would do to the property market and if there would be a crash as a result. I have discussed in a previous article on the chances of that (slim but always a possibility) … but assuming it happens, it is my opinion the outcome of a no-deal Brexit would be no worse than the country’s 2008/9 credit crunch property crash, the late 1988 property crash, the 1974 property crash, 1951 property crash … I could go on. The British economy would bounce back from the shock of a no-deal Brexit with lower property values and a continued low interest rate environment (together with an additional round of Quantitative Easing) and that would mean we would see a similar bounce back as savvy buyers saw it as a fantastic buying opportunity.

So, let me explain the reasons I believe this…

Many said after the Brexit vote in June 2016, we were due a property crash – but we all know what happened afterwards.

Initially, let’s see what would happen if we did have a crash, how quickly it would bounce back and then finally discuss how the chances of a crash are actually quite minimal.

Therefore, to start, I have initially split down the types of property in Rugby (Det/Semi etc.) and in the red column put the average value of that Rugby property type in 2009. Next in the orange column what those average values are today in 2019.

Now, assuming we had a property crash like we did in 2008, when average property values dropped nationally by 18.37%, I applied a similar drop to the current 2019 Rugby figures (i.e. the green column) to see what would happen to property values by the middle 2020 (because the last crash only took 13/14 months).

…and finally, what would subsequently happen to those same property prices if we had a repeat of the 2009 to 2014 property market bounce back.

Of course, these are all assumptions and we can’t factor in such things as China going pop on all its debt … yet either way, the chance of such a crash coming from internal UK factors are much slimmer than in another of the four property crashes we have experienced in the last 80 years. Why, you might ask?

The seven reasons I believe are these …

1.     The new Bank of England mortgage rules on lending 2014 to stop reckless lending that fuelled that last crash.

2.     Low inflation.

3.     Low mortgage rates (the average Brit’s fixed rate mortgage is currently 2.26% and the variable rate mortgage of 3.07%).

4.     Wage rises are forecast to continue to outgrow inflation.

5.     Unemployment figures dropping to 4% (down from 8.4% in 2011).

6.     The high percentage (67.7%) of all British mortgages being on a fixed rate.

7.     And notwithstanding the distractions of Brexit over the last few years, it cannot be denied that the British economy has slowly and steadily been heading in the right direction for a number of years, built on some decent foundations of a steady housing market (unlike the 1988 and 2008 crashes when the housing market got overheated very quickly on the run up to the crashes).

So as the circumstances are much different to the last two crashes, the chances of a crash are much slimmer. Yet if we do have a crash, for the very same 7 reasons above why the chances of a crash are unlikely, those 7 reasons would definitely contribute to making the ensuing recession neither too long nor substantial in scale.

One final thought for the homeowners of Rugby. Most people when they move home, move up market, meaning in a decreasing market you will actually be the winner, as a 10% drop on yours would be much smaller in £notes than a 10% drop on a bigger property … think about it.

One final thought for the new and existing buy to let landlords of Rugby. Well, the questions I seem to be asked on an almost daily basis by landlords are: –

·      “Should I sell my property in Rugby?”

·      “Is the time right to buy another buy to let property in Rugby and if not Rugby, where?”

·      “Are there any property bargains out there in Rugby to be had?”

Many other Rugby landlords, who are with us and many who are with other Rugby letting agents, all like to pop in for a coffee, pick up the phone or email us to discuss the Rugby property market, how Rugby compares with its closest rivals (Coventry, Lutterworth and Daventry), and hopefully answer the three questions above. I don’t bite, I don’t do hard sell, I will just give you my honest and straight-talking opinion. I look forward to hearing from you.