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Talk to many Locks Heath 20 something’s, where home ownership has looked but a vague dream, many of them have been vexatious towards the Baby Boomer generation and their pushover ‘easy go lucky’ walk through life; jealous of their free university education with grants, their eye watering property windfalls, their golden final salary pensions and their free bus passes.

If you had bought a property in Locks Heath for say £17,000 in first quarter of 1977, today it would be worth £373,612, a windfall increase of 2097.72%.

But to blame the 60 and 70 year olds of Locks Heath for that sort of rise seems a little unfair, with the value of the homes rising like rocket, I don’t believe they can be faulted or made liable for that. A few weeks ago, I discussed in my blog the number of people in the Locks Heath area who have two or more spare bedrooms (meaning they are under-occupying the house). I see many mature members of Locks Heath society, rattling around in large 4/5 bed houses where the kids have flown the nest years ago… but should they be blamed?

We are all just human, and the mature members of UK society have just reacted to the inducements of our property and tax system. The mature generations who joined the property market party in the 1970’s and 1980’s were able to take out huge mortgages protected in the knowledge that inflation would corrode the real value of the mortgage, while wage gains would boost their ability to repay.

Neither do I directly blame the multitude of Locks Heath buy to let landlords, buying up their 10th or 11th property to add to their buy to let empire. They too, are humbly reacting to the peculiar historic inducements of the UK property market.

So, who is to blame?

Well, hyperinflation in the 1970’s meant the real value of people’s mortgages was whipped out (as mentioned above). Margaret Thatcher and Nigel Lawson are also good people to blame with Maggie selling off millions of council houses and Nigel Lawson’s delayed ending of the MIRAS tax relief in 1987; meaning he too can get his share of indignation. The Blair/Brown combo doubled stamp duty in 1997 and again in 2000, which, as a tax on property transactions, precludes a more efficient distribution of the current housing stock. The Government has had plenty of opportunity to change the draconian stamp duty rules to incentivise those mature Locks Heath house movers to downsize.

However, I have started to see over the last few years a change in Government policy towards housing. The new breed of Locks Heath buy to let Landlords that have come about since the Millennium, have had their wings clipped over the last couple of years, with the introduction of new tax rules (meaning it is slightly more difficult to make money out of property unless you have all the national information and Locks Heath property trends to hand).

It’s easy to think the only reason that hundreds of first time buyers have been priced out of the Locks Heath housing market is because of these Landlords. Yet, I believe Landlords have been undervalued with the Locks Heath homes they provide for Locks Heath people. With first time buyers struggling to save for a deposit, if it weren’t for those Landlords buying up those homes over the last 10/15 years, we would have a bigger housing crisis than we have today. Since the global financial crisis of 2008/9, local councils have had to cut services, so certainly didn’t have enough money to build new homes… homes that were provided to Locks Heath by these buy to let Landlords.

One side of the argument is that 300 homes are being bought up by buy to let Landlords each year in the Fareham Borough Council area when otherwise they might have become available to other buyers, the other side of the argument is the current national average deposit is £51,800, which is, by far, the greatest barrier to those wanting to buy their first home. Those homes bought by local buy to let Landlords are not left idle, as they equate to 2,101 of new homes for local people, most of whom who see renting as a better option because of the choice, the simplicity and the flexibility which renting brings.

In the 60’s/70’/80’s, the traditional thoughts that you were a failure unless you owned your own home have now all but disappeared, because if you ask many young people, they would probably say renting was the perfect option for them at certain times of their life.

My research shows that certain types of Locks Heath property are more affordable today than before the 2007 credit crunch.

Roll the clock back to 2007 just before the credit crunch hit which saw Locks Heath property values plummet like a lead balloon and the Locks Heath property market had reached a peak with the prices for Locks Heath property hitting the highest level they had ever reached. Between 2008 and 2010, Locks Heath property values lay in the doldrums and only started to rise in 2011, albeit quite slowly to begin with.

Nevertheless, even though property values have now passed those 2007 peaks my research indicates that Locks Heath property, especially flats/apartments, are now more affordable than they were before the 2008 credit crunch.

Back in 2007, the average value of a Locks Heath flat/apartment stood at £153,592 and today, it stands at £179,588, a rise of £25,996 or 16.9%.

However, between 2007 and today, we have experienced inflation (as measured by the Government’s Consumer Price Index) of 25.97% meaning that in real spending power terms Locks Heath apartments are 9% more affordable than in 2007. Looking at it another way, if the average Locks Heath apartment (valued at £153,592 in 2007) had risen by 25.97% inflation over those 10 years, today it would be worth £193,480 (instead of the current £179,588).

The point I’m trying to get across is that Locks Heath property is more affordable than many people think. Locks Heath first time buyers can get on the ladder as 95% mortgages have been readily available to first-time buyers since 2010.

It really comes down to a choice and if Locks Heath first-time buyers can get over the hurdle of saving the 5% deposit for the mortgage on the property – they will be on to a winner, especially with these ultralow mortgage interest rates, a mortgage can be between 10% and 30% cheaper per month than the rental payments on the same house.

So why aren’t Locks Heath 20 somethings buying their own home?

Back in the 1960’s and 1970’s, renting was considered the poor man’s choice in Locks Heath (and the rest of the Country) – a huge stigma was attached to renting. However, over the last 10 years as a country, we have done a complete U-turn in our attitude towards renting – meaning that many people find renting a better option and a lifestyle choice.

Saving the 5% deposit means going without many luxuries in life (such as holidays, every satellite movie and sports channel, socialising or the latest mobile phone – even if only in the short term) therefore instead of saving every last pound to put towards a mortgage deposit Locks Heath 20 somethings choose to rent.

There is no denying the simple fact that over the next 10 to 15 years, the people who choose to rent instead of buy in Locks Heath will continue to rise.

Therefore, everyone in Locks Heath has a responsibility to ensure that an adequate number of quality Locks Heath rental properties are safeguarded to meet those future demands. Interestingly, what I have noticed though over the last few years are the expectations of Locks Heath Tenants on the finish and specification of their Locks Heath rental property.

I have perceived that in the past, what a Tenant wanted from their Locks Heath rental property was moderately unassuming because renting a property was only a short-term choice to fill the gap before jumping on the property ladder. Before the millennium, wood chip wall paper and twenty-year-old kitchen and bathroom suites were considered the norm.

However, Locks Heath Tenants’ expectations are becoming more discerning as each year goes by. I have also noticed the length of time a Tenant remains in their Locks Heath property is becoming longer (and this was backed up recently by stats from a Government Report), although I have noticed a tendency for many Locks Heath Landlords not to keep the rental payments at the going market rates – maybe a topic for a future article for my blog?

The bottom line is this… Locks Heath Landlords will need to be more conscious of Tenants needs and wants and consider their financial planning for future enhancements to their Locks Heath rental properties over the next five, ten and twenty years – e.g. decorating, kitchen and bathroom suites etc etc ..

The present-day and future situation of the Locks Heath private rental property market is important, and I frequently liaise with Locks Heath buy-to-let investors looking to spread their Locks Heath rental-portfolios. I also enjoy meeting and working alongside Locks Heath first time Landlords to ensure they can navigate through the minefield of rental voids, the important balance of capital growth and yield and ensuring the property is returned back to you in the future in the best possible condition.

Well, the fallout from the recent Budget is still continuing.  I was chatting to a couple of movers and shakers from the Locks Heath area the other day, when one said, “There isn’t enough land to build all these 300,000 houses Philip Hammond wants to build each year”.

…and if you read the Daily Mail, you would be forgiven for thinking the Country was at bursting point…

… or is it?

It was 60 years ago the first satellite was launched (Sputnik).  All the Superpowers have used them to take high definition pictures of each other for decades, but now satellites and their high-powered cameras are being used for more peaceful purposes.  The European Environment Agency (EEA) have been taking high definition pictures of the UK from outer-space to give us a focused picture of what every corner of the Country really looks like… and the findings will come as a surprise.

As my blog readers know, I always like to ask the important questions relating to the Locks Heath property market.  If you are a Locks Heath Landlord or Locks Heath homeowner, this knowledge will enable you to make a more considered opinion on your direction and future in the Locks Heath property market.  Like every aspect of all economic life it’s all about supply and demand, because over the last twenty or so years there has been an imbalance in the British (and Locks Heath) housing market.  With demand outstripping supply it means that the average value of a property in Fareham has risen by 344.41%, taking an average value from £64,400 in 1995 to £286,200 today.

Using the information from the EEA and data crunched by Sheffield University with their Corine-Land Cover project, I posed them a few questions about the local area, interesting questions I would like to share with you…

1. What proportion of the whole of Fareham is built on?

41.88%

That surprised you, didn’t it!  In the study, land classified as ‘urban fabric’ defined has land which has between 50% and 100% of the land surface is built on, (meaning up to a half might be gardens or small parks, but the majority is built on).

2. How much land is intensively built on locally?

Of that amount mentioned above, how much of it is high-density urban fabric? (i.e. where 80% to 100% is built on – still leaving 20% for gardens)  Less than 0.1%  – again I bet that surprised you!

3. So how is the land used locally?3. So how is the land used locally?

• Sports Facilities 1.98%
• Industry  2.83%
• Pastures 18.39%
• Arable Farmland 28.72%

…the rest being made up of various other minor types such as airfields and forests, etc.

Locks Heath and the surrounding areas are greener than you think!  In fact, I read that property covers less of the UK than the land revealed when the tide goes out.  The assumption that vast bands of our local area have been concreted over doesn’t stand up to inspection. However, the effect of housing undoubtedly spreads beyond its actual footprint, in terms of noise, pollution and roads.

Now I am not suggesting for one second we concrete over every inch of the locality, but the bottom line is we, as a country, are growing at a quicker rate than the households we are building.  I appreciate the emotional effect of housing is greater than other land use types because most of us spend the vast majority of our time surrounded by it.  As Brits, we live our lives driving along roads, walking on footpaths and working and living in buildings meaning we tend, as a result, to considerably overemphasise how much of it there is.

The bottom line is Locks Heath people and the local authorities are going to have to put their weight into building more homes for people to live in.  There is going to have to be some give and take on both sides, otherwise house prices will continue to rise exponentially in the future and Locks Heath youngster’s won’t be able to buy their own Locks Heath home, meaning Locks Heath rents and demand for private rented accommodation in Locks Heath can (and will) also grow exponentially.