I had a very interesting conversation the other day with a Locks Heath resident.  He is a Locks Heath homeowner, retired and mortgage free.  He stated how un-affordable Locks Heath’s rising property prices were and that he worried how the younger generation of Locks Heath could ever afford to buy.  He went on to ask if it was right for Landlords to make money on the inability of others to buy property and if, by buying a buy to let property, Locks Heath Landlords are denying the younger generation the ability to buy their own home.

Whilst doing my research for my many blog posts on the Locks Heath Property Market, I know that a third of 25 to 30 year olds still live at home.  It’s no wonder people are kicking out against buy to let Landlords; as they are the greedy bad people who are cashing in on a social woe.  In fact, most people believe the high increases in Locks Heath’s (and the rest of the UK’s) house prices are the very reason owning a home is outside the grasp of these younger would-be property owners.

However, the numbers tell a different story.  Looking at the age of first time buyers since 1990, the statistics could be seen to pour cold water on the idea that younger people are being priced out of the housing market.  In 1990, when data was first published, the average age of a first time buyer was 33, today it’s 31.

Nevertheless, the average age doesn’t tell the whole story.  In the early 1990’s, 26.7% of first-time buyers were under 25, while in the last five years just 14.9% were.  In the early 1990’s, four out of ten first time buyers were 25 to 34 years of age and now its six out of ten first time buyers.

Although there are also indications of how un-affordable housing is, the house price-to-earnings ratio has almost doubled for first-time buyers in the past 30 years.  In 1983 the average Locks Heath home cost a first-time buyer (or buyers in the case of joint mortgages) the equivalent of 3.0 times their total annual earnings, whilst today, that has escalated to 6.1 times their income.

Again, those figures don’t tell the whole story.  Back in 1983, the mortgage payments as percentage of mean take home pay for a Locks Heath first time buyer was 31.2%.  In 1989, that had risen to 78.6%.  Today it is 38.6%… and no that’s not a typo… 38.6% is the correct figure.

So, to answer the gentleman’s questions about the younger generation of Locks Heath being able to afford to buy and if it was right for Landlords to make money on the inability of others to buy property?  It isn’t all to do with affordability as the numbers show.

And what of the Landlords?  Some say the government should sort the housing problem out themselves, but according to my calculations, £18bn a year would need to be spent for the next 20 or so years to meet current demand for households.  That would be the equivalent of raising income tax by 4p in the Pound.  I don’t think UK tax payers would swallow that.

So, if the Government haven’t got the money who else will house these people?  Private Sector Landlords and thankfully they have taken up the slack over the last 15 years.

Some say there is a tendency to equate property ownership with national prosperity, but this isn’t necessarily the case.  The youngsters of Locks Heath are buying houses, but buying later in life.  Also, many Locks Heath youngsters are actively choosing to rent for the long term, as it gives them flexibility – something our 21^st Century society craves more than ever.

For more articles like this and all of the latest Buy to Let Deals please visit The Locks Heath Property Blog.

There are 23.36 million properties in England and Wales with 64% being owner occupied and 36% being rented either from a private landlord, local authority or housing association.

Over nine out of ten of those English and Welsh owner-occupied properties are a whole house or bungalow.  Now, most people would assume they would be freehold – however, of those renting nearly half of rental properties, 44% to be precise, lived in other leasehold apartments and flats.

It might be wise to quickly explain the difference between freehold and leasehold.  When someone owns the freehold of a property they own it outright, including the land it is built on, whilst with a leasehold property the leaseholder owns the property for the length of their lease agreement.  Leaseholders must pay the person who owns land (the freeholder) ground rent and other fees.  When the leasehold ends ownership returns to the freeholder, although the leaseholder can extend the lease or they can buy the freeholder out, but there are rules and regulations with regards to doing that.

Therefore, it would be safe to assume that houses are freehold and flats are leasehold wouldn’t it…..?  Not necessarily!  Most houses are freehold but some might be leasehold, usually through shared-ownership schemes.  But more and more new homes builders are selling houses on a leasehold as well.  The protection of the law afforded to leaseholders who own a flat is massive, but sadly lacking to leasehold houses sold privately.

Looking specifically at the figures for Locks Heath, at the last count in SO31 there were 19,768 properties.  Since 1995, 21,209 properties in SO31 have changed hands and have been sold.  Looking further at those 21,209 transactions in SO31 since 1995, using data from Land Registry and solicitors practice My-Home-Move, 10.56% have been leasehold (lower than the national average of 15%).

However, I am concerned about a few new homes builders selling new houses (not flats – houses) as leasehold.  There has been a growing (yet small) trend for new-build houses to be sold as leasehold in recent years.  While not all house builders use this model, those that do maintain it helps make developments financially viable.

The issue comes when builders sell the freehold separately to an investment company without informing the lease holder  – which they are legally allowed to do without telling the leaseholder.  In England and Wales the “right of first refusal” to buy the freehold is written in law to leaseholders of flats i.e. the freeholder must offer it to the leaseholders of all the flats of the building first), but not leaseholders of houses.

This is the point I am trying to get across.  If you are buying a new home and it is a house (i.e. not a flat) please check very carefully indeed whether its freehold or leasehold.  If it is a leasehold, whilst you do have rights, they are not as strong as for those people buying a leasehold flat.  I appreciate I am only talking about a very small percentage of the property market, but potentially this could end up costing thousands of pounds to those affected.

In Locks Heath, of the 17,423 households, 5,718 homes are owned without a mortgage and 8,190 homes are owned by a mortgage.  Many homeowners have made contact with me asking what the General Election will do to the Locks Heath property market?  The best way to tell the future is to look at the past.

I have looked over the last five general elections and analysed in detail what happened to the property market on the lead up to and after each general election.  Some very interesting information has come to light.

Of the last five general elections (1997, 2001, 2005, 2010 and 2015), the two elections that weren’t certain were the last two (2010 with the collation and 2015 with unexpected Tory majority).  Therefore, I wanted to compare what happened in 1997, 2001 and 2005 when Tony Blair was guaranteed to be elected/re-elected versus the last knife edge uncertain votes of 2010 and 2015 in terms of the number of houses sold and the prices achieved.

Look at the first graph below comparing the number of properties sold and the dates of the general elections.

It is clear, looking at the number of monthly transactions (the blue line), there is a certain rhythm or seasonality to the housing market.  That rhythm/seasonality has never changed since 1995 (seasonality meaning the periodic fluctuations that occur regularly based on a season – i.e. you can see how the number of properties sold dips around Christmas, rises in Spring and Summer and drops again at the end of the year).

To remove that seasonality, I have introduced the red line.  The red line is a 12 month ‘moving average’ trend line which enables us to look at the ‘de-seasonalised’ housing transaction numbers, whilst the yellow arrows denote the times of the general elections.  It is clear to see that after the 1997, 2001 and 2005 elections, there was significant uplift in number of households sold, whilst in 2010 and 2015, there was slight drop in house transactions (i.e. number of properties sold).

Next, I wanted to consider what happened to property prices.  In the graph below, I have used that same 12-month average, housing transactions numbers (in red) and yellow arrows for the dates of the general elections but this time compared that to what happened to property values (pink line).

It is quite clear none of the general elections had any effect on the property values.  Also, the timescales between the calling of the election and the date itself also means that any property buyer’s indecisiveness and indecision before the election will have less of an impact on the market.

So finally, what does this mean for the landlords of the 2,104 private rented properties in Locks Heath?  Well, as I have discussed in previous articles (and just as relevant for homeowners as well) property value growth in Locks Heath will be more subdued in the coming few years for reasons other than the general election.  The growth of rents has taken a slight hit in the last few months as there has been a slight over supply of rental property in Locks Heath, making it imperative that Locks Heath landlords are realistic with their market rents.  But in the long term, as the younger generation still choose to rent rather than buy, the prospects, even with the changes in taxation, mean investing in buy-to-let still looks a good bet.  If you want to read more about the Locks Heath property market – then why not visit The Locks Heath Property Blog for more information.

This was a question posed to me on social media a few weeks ago, after my article about our mature members of Locks Heath society and the fact many retirees feel trapped in their homes.  After working hard for many years and buying a home for themselves and their family, the children have subsequently flown the nest and now they are left to rattle round in a big house.  Many feel trapped in their big homes (hence I dubbed these Locks Heath home owning mature members of our society, ‘Generation Trapped’).

So, should we force OAP Locks Heath homeowners to downsize?

Well in the original article, I suggested that we as a society should encourage, through building, tax breaks and social acceptance that it’s a good thing to downsize.  But should the Government force OAP’s?

Well, one of the biggest reasons OAP’s move home is health (or lack of it)

Looking at the statistics for Locks Heath (includes Warsash and Whiteley), of the 5,841 Homeowners who are 65 years and older, whilst 3,730 of them described themselves in good or very good health, a sizeable 1,636 home owning OAPs described themselves as in fair health and 475 in bad or very bad health.

8.13% of Locks Heath home owning OAP’s are in poor health

But if you look at the figures for the whole of Fareham Borough Council (not just Locks Heath), there are only 807 specialist retirement homes that one could buy (if they were in fact for sale) and 415 homes available to rent from the Council and other specialist providers (again- you would be waiting for dead man’s shoes to get your foot in the door) and many older homeowners wouldn’t feel comfortable with the idea of renting a retirement property after enjoying the security of owning their own home for most of their adult lives.

My intuition tells me the majority ‘would be’ Locks Heath downsizers could certainly afford to move but are staying put in bigger family homes because they can’t find a suitable smaller property.  The fact is there simply aren’t enough bungalows for the healthy older members of the Locks Heath population and specialist retirement properties for the ones who aren’t in such good health… we need to build more appropriate houses in Locks Heath.

The Government’s Housing White Paper, published a few weeks ago, could have solved so many problems with the UK housing market, including the issue of homing our aging population.  Instead, it ended up feeling annoyingly ambiguous.  Forcing our older generation to move with such measures as a punitive taxation (say a tax on wasted bedrooms for people who are retired) would be the wrong thing to do.  Instead of the stick – maybe the Government could use the carrot tactics and offered tax breaks for downsizers.  Who knows, but something has to happen.

Come to think about it, isn’t the word ‘downsize’ such an awful word?  I prefer to use the word ‘decent-size’ instead of ‘down-size’- as the other phrase feels like they are lowering themselves, as though they are having to downgrade themselves in their retirement (and let’s be frank – no one likes to be downgraded).

The simple fact is we are living longer as a population and constantly growing with increased birth rates and immigration.  So, what I would say to all the homeowners and property owning public of Locks Heath is… more houses and apartments need to be built in the Locks Heath area, especially more specialist retirement properties and bungalows.  The Government had a golden opportunity with the White Paper – and were sadly found lacking.

And a message to my Locks Heath property investor readers whilst this issue gets sorted in the coming decade(s)… maybe seriously consider doing up older bungalows.  People will pay handsomely for them – be they for sale or even rent?  Just a thought!

According to the Land Registry’s latest House Price Index for Locks Heath and the surrounding locality, the value of apartments/flats are rising at a faster rate than terraced/town houses, semi-detached properties and even detached property.

Values of apartments in Locks Heath have increased by 6.27% over the past year, which is proportionally 26% more than the Locks Heath average rise of 4.98%.  The last time flats/apartments in Locks Heath out performed all the other types of property, by such a gulf, was back in the winter of 2005/6.  For comparison, the other property types performed as follows:

Detached homes rose by 4.89%

Semi-detached homes rose by 4.76%

Terraced/Town-Houses rose by 4.53%

This moderately increasing rate of property value growth is opportune – but no one should confuse it with a strong and vigorous healthy Locks Heath property market.  Instead, it is somewhat an indicator of the long-lasting lack of property on the market.  In fact, I have spoken about the lack of homes for sale in Locks Heath on a number of occasions in my Locks Heath Property Blog and, whilst it isn’t as bad as it was 12 months ago, choice is quite limited for buyers.

The average property value in Locks Heath now stands at £330,200.

When split down into property types:

Locks Heath Apartments at £171,800

Locks Heath Detached at £411,300

Locks Heath Semi-Detached at £273,900

Locks Heath Terraced/Town-House at £228,000

So why have Locks Heath apartments performed so well, and is it just a Locks Heath thing?

When I scrutinised the figures for the rest of the UK, it appears that apartments are pacemakers in the clear majority of the country.  Of the 379 local authority areas in the UK, the value of apartments is rising faster than detached, semi-detached and terraced houses in 320 of them.

So, should Locks Heath apartment owners be getting out the Champagne?  Well, I would keep it on ice as the Land Registry figures are notorious for short term fluctuations.  It’s hard to have faith in the fact that Locks Heath house values rose rapidly last month given that, in the last six months, the Land Registry has frequently made downward revisions to their first published House Price Index figures.

Thankfully, the bigger picture from the Council of Mortgage Lenders (CML) stated that home buying activity last month was up 2% over the same month in 2016 – not bad as we have had the Autumn, Winter and now Spring since the Brexit vote.  The CML stated first time buyer’s levels of affordability was being squeezed and that the average amount borrowed by those first-time buyers dropped slightly last month, but the overall amount borrowed (by all buyers) was an impressive 12% higher than the same month in 2016.

So what next for the Locks Heath Property market?  I believe the uplift in the values of apartments is a short-term blip.  The real issue is with the way wage growth might not keep up with inflation as the effects of 2016 exchange rate sucks in inflation (meaning real wage growth stagnates).  This will mean buyer demand growth will be curtailed and with property values already so full, I believe a renewed hastening in house price growth is unlikely.

I believe we are starting to return to the housing market we saw in the mid 1990’s…. Steady demand, steady supply – nothing silly when it comes to house price growth.  Therefore, I believe, with what is happening around us, this isn’t a bad thing at all.  HMS Locks Heath Property Market…. “Nice and steady as she goes”, says the Captain!

So all cards up in the air!  A general election will be on the books, but one thing is for sure… whoever gets the job to deal with Brexit has a hard job on their hands (I’m just glad its not me!).  As it currently stands, by not assuring the rights of EU citizens in the UK, Theresa May has wasted an opportunity to give peace of mind to our EU co-workers working and living in Locks Heath (and the rest of the UK).  No.10 Downing Street’s point of view is that in promising the rights of EU citizens in the UK, it will postpone the same guarantee to the 1.5 million UK citizens living in the other nations of the EU.

Putting aside the politics for one second, the simple fact is now Article 50 has been triggered, we have two years to make a deal with the EU; otherwise it will be a ‘hard Brexit’. Now you might not think a hard Brexit will affect you in your home in Locks Heath… but nothing could be further from the truth.

Of the 110,125 people who are resident in the Fareham Borough Council area, 103,937 were born in the UK, 1,607 were born in EU countries from West Europe and 405 were born in EU countries from the former Soviet States in East Europe (the rest coming from other countries around the world).

The rights of these EU citizens living in the Locks Heath area are not guaranteed and will now be part of the negotiation with Europe.  It is true a lot of our EU next door neighbours in Locks Heath will have acquired rights relating to the right to live, to work, to own a business, to possess a property, the right to access health and education services and the right to remain in a UK after retirement… yet those acquired rights are up for negotiation in the next two years.

So, what would a hard Brexit do to the Locks Heath property market?

Well a hard Brexit could mean the nuclear option when it came to the Locks Heath housing market.  It could mean that every EU citizen would have to leave the UK.

In the Fareham Borough area, 1,252 of the 1,607 Western European EU citizens own their own home and (so they would all need to be sold) and 233 of the 405 Eastern European EU citizens rent a property, so again all those rental properties would all come on the market at the same time.

Hard Brexit and mass EU Migration would mean c. 700 properties being dumped onto the housing market in a short period of time, meaning there would be a massive drop in Locks Heath property values and rents, causing negative equity for thousands of Locks Heath homeowners and many buy-to-let landlords would be out of pocket.

While there is no certainty as to what the future will hold, both UK expats in the EU and EU citizens in the UK rights will no longer be guaranteed and will be subject to bilateral renegotiation.

All I ask is that the politicians are sensible with each other in the negotiations.  A lot of the success of the Locks Heath (and UK) property market has been built on high levels of homeownership and more recently in the last 10/15 years, a growth of the rental sector with lots of demand from Eastern Europeans coming to Locks Heath (and the surrounding area) to get work and provide for their families. Many Locks Heath people have invested their life savings into buying a buy to let property.

Much will depend on what is politically realistic.  Unilateral knee-jerk reactions and measures caused by a hard Brexit would not only likely cause major disruption or suffering to the 3 million EU citizens living in the UK, but also everyone who owns property in the UK. Politics aside – a hard Brexit is in no one’s interests.

The Locks Heath Property Market is a very interesting animal and has been particularly fascinating over the last 12 years when we consider what has happened to Locks Heath rents and house prices.

There’s currently much talk of what will happen to the rental property market following Brexit. To judge that, I believe we must look what happened in the 2008/9 credit crunch (and what has happened since) to judge rationale and methodically, the possible ramifications for long-term investors in the Locks Heath property market.  You see, an important yet overlooked measure is the performance of rental income vs house prices (i.e. the resultant yields over time).  In Locks Heath (as for the rest of Great Britain), notwithstanding a slight drop in 2008 and 2009, property rentals have been gradually increasing.

The income from rentals has been progressively increasing over the last 12 years.  Today, they are 22.6% higher than they were at the beginning of 2005.  In fact, over the last five years, the average growth has been 2.4% per annum.  From a Landlord’s point of view, increase in average rental income is not to be sneered at.  However, the observant readers will be noting that we are ignoring an important factor – our friend inflation.

Turn the clock back to 2005, and we have a property being rented for say £900 a month and that is still being rented at £900 a month today, in the Spring of 2017.  While the Landlord is not getting any less income, this £900 is no longer worth as much.  Let me explain…. In 2005 £900 may have bought a two-week 4* holiday in Italy.  Yet, holidays have increased in line with inflation (which has been 38.5% since 2005), so our holiday would cost today £1,246 (£900 + 38.5% inflation = £1,246).  Therefore the Landlord could no longer afford the same holiday, even though they are receiving the same amount in pound notes from their rental property.

This means when we compare rents in Locks Heath to inflation since 2005, Locks Heath Landlords are worse off today when they receive their monthly rental income, than they were in 2005 by 15.9% in real terms (rents increased by 22.6% since 2005, less the 38.5% inflation since 2005 – net affect 15.9% drop)

However, rental income is not the only way to generate money from property as property values can increase.  Although in the short term cash flows are diminishing, many Locks Heath Landlords may be content to accept that for a colossal increase in capital value.

Property values in Locks Heath have risen by 42.8% since 2005

This equates to a reasonably healthy 3.57% per annum increase over the last 12 years.  Even more interesting that this includes the 2008/9 property crash, this will make those Locks Heath Landlords and investors feel a little better about the information regarding rents after inflation.

Moving forward, the prospects of making easy money on buy to let in Locks Heath have diminished, when compared to 2005.  Last decade making money from buy to let was as easy as falling off a log – but not anymore.

It would be true to say, my rental income verses property prices study does lead to noteworthy thoughts.  I am often asked to look at my Landlord’s rental portfolios, to ascertain the spread of their investment across their multiple properties.  It’s all about judging whether what you have will meet your needs of the investment in the future.  It’s the balance of capital growth and yield whilst diversifying this risk.

If you are investing in the Locks Heath property market do your homework and do it well.  While some yields may look attractive, there are properties in many areas that do not have the solid essentials in place to sustain them.  If you are looking for capital growth, you might be surprised where the hidden gems really are.  Take advice, even ask your agent for a portfolio analysis.  The clear majority of agents in Locks Heath will be able to give a detailed analysis of past and anticipated investment opportunity on your portfolio.  However, if they can’t help – well, you know where I am, the kettle is on!

For more thoughts on the Locks Heath Property market – visit the Locks Heath Property Blog

It might surprise you that it isn’t always the poshest villages around the Fareham Borough or the swankiest Locks Heath streets where properties sell and let the quickest. Quite often, it is the ones that have the best transport links.  I mean, there is a reason why one of the most popular property programmes on television is called Location, Location, Location!

As an agent in Locks Heath, I am frequently confronted with queries about the Locks Heath property market, and most days I am asked “What is the best part of Locks Heath and the surrounding villages to live in these days?”.  Now the answer is different for each person – a lot depends on the demographics of their family, their age, schooling requirements and interests etc. Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport – of which the railways are very important.

Official figures recently released state that, in total, 955 people jump on a train each and every day from Swanwick Train station.  Of those, 475 are season ticket holders.  That’s a lot of money being spent when a season ticket, standard class, to London is £5,424 a year.

So, if up to £2.58m is being spent on rail season tickets each year from Swanwick, those commuters must have some impressive jobs and incomes to allow them to afford that season ticket in the first place.  That means demand for middle to upper market properties remains strong in Locks Heath and the surrounding area and so, in turn, these are the type of people who are happy to invest in the Locks Heath buy to let market – providing homes for the Tenants of Locks Heath.

The bottom line is that property values in Locks Heath would be much lower if it wasn’t for the proximity of the railway station and the people it serves in the suburb

And this isn’t a flash in the pan.  Rail is becoming increasingly important as the costs associated with car travel continue to rise and roads are becoming more and more congested.  This has resulted in a huge surge in rail travel.

Overall usage of the station at Swanwick has increased over the last 20 years.  In 1997, a total of 246,319 people went through the barriers or connected with another train at the station in that 12-month period.  However, in 2016, that figure had risen to 695,136 people using the station (that’s 1,910 people a day).

The juxtaposition of the property and the train station has an important effect on the value and saleability of a Locks Heath property.  It is also significant for Tenants – so if you are a Locks Heath buy to let investor looking for a property the distance to and from the railway station can be extremely significant.

One of the first things house buyers and Tenants do when surfing the web for somewhere to live is find out the proximity of a property to the train station.  That is why Rightmove displays the distance to the railway station alongside each and every property on their website.

For more thoughts on the Locks Heath Property market please visit The Locks Heath Property Blog.

The next five years will see an interesting change in the Locks Heath property market.  My recent research has concluded that the rent private tenants pay in Locks Heath will rise faster than Locks Heath property prices over the next five years, creating further issues to Locks Heath’s growing multitude of renters.  In fact, my examination of statistics forecasts that ..

By 2022, Locks Heath rents will increase by 23%, whereas Locks Heath property values will only grow by 17%.

Let me explain why I have come to those conclusions:

Over the last five years property values in Locks Heath have risen by 33.3%, whilst rents have only risen by 16.3%.

Throughout the last few years, and compounded in 2016, Tenant demand for rental properties continued to go up whilst the Press predicted some Landlords expect to reduce their portfolios in the next couple of years.  Meaning that Locks Heath Tenants will have fewer properties to choose from, which will push rents higher.  In fact, talking to fellow property professionals in the area, there appears to be a shortage of new rental properties coming on to the Locks Heath lettings market.

Landlords have some intriguing challenges ahead of them in the coming years, most notably that the Tory’s have changed the taxation rules for Landlords in the way buy to let properties are to be taxed.  On top of that, there is the ban on letting agent fees which is still to come into force (probably in 2018).  When that happened in Scotland in 2012 Scottish letting agents passed on those fees to their Landlords, who in turn increased the rent they charged to their Tenants.

All I would say to Theresa May and Philip Hammond is that they must be wary about indicating both red and green lights at the same time to the private rented sector.  They can’t expect the armies of small private Landlords to continue to house around a fifth of the population and then tax the hell out of them.  They didn’t invest in buy to let as a charity or to satisfy any philanthropic urges.  Something has to give – and that will be significant rent rises over the coming few years (and before anyone gives me any derogatory comments about Landlords… if it wasn’t for Landlords buying all these buy to let properties over the last 15 years, I am not sure where everyone would be living today – because most of the Council houses were sold off in the 1980’s).

With the challenges ahead, with the ‘B’ word (that’s budget if you wondered!), house price inflation will be tempered over the coming five years in Locks Heath.  As I have discussed in previous articles, the number of properties on the market in Locks Heath remains close to historic lows, which is both good as it keeps houses prices relatively stable, yet not so good as it impedes choice for buyers… and hence why I believe property values in Locks Heath will only be 17% higher in five years’ time.

Whilst on the other side of the coin, with the challenges facing Landlords and the significant shortage of new homes being built, Locks Heath people still need somewhere to live.  If those people aren’t buying houses and the local authority aren’t building council houses in there thousands (because they have no money), with the average rent for a Locks Heath rental property currently standing at £882 per month…

Over the next five years, I predict the average rent in Locks Heath will rise to £1,085 per month

These are interesting times.  There is still money to be made in buy to let in Locks Heath – Locks Heath Landlords will just need to be smarter and more savvy with their investments.  If you are looking for such advice and opinion to help you meet those investment goals, one place you can find more information is The Locks Heath Property Blog.

2017 has started with some positive interest in the Locks Heath property market.  Taking a snap shot of the Locks Heath property market for the first quarter of 2017, the picture suggests some interesting trends when it comes to the number of properties available to buy, their asking prices and what prices properties are actually selling for.

Let us first consider the number of properties for sale (in SO31), compared to 12 months ago:

Next, Locks Heath asking prices, compared to the same as a year ago, are 6% lower.

With that in mind, I wanted to look at what property was actually selling for in Locks Heath. Taking my information from the Land Registry, the last available six months property transactions for SO31 show an interesting picture (note the Land Registry data is always a few months behind due to the nature of the house buying process and so November 2016 is latest set of data). The price shown is the average price paid and the number in brackets is the number of properties actually sold.

	Jun-16	Jul-16	Aug-16	Sep-16	Oct-16	Nov-16
Detached	£464,355 (31)	£478,659 (37)	£422,293 (35)	£453,431 (16)	£430,550 (19)	£437,247 (18)
Semi Detached	£303,590 (20)	£284,340 (11)	£293,600 (24)	£300,904 (12)	£301,417 (18)	£286,606 (9)
Terraced	£314,856 (16)	£324,617 (21)	£225,801 (18)	£251,390 (15)	£280,353 (17)	£237,496 (14)
Flat	£169,638 (21)	£170,818 (11)	£231,992 (13)	£194,386 (14)	£183,525 (18)	£159,781 (8)
All	£330,305 (88)	£369,175 (80)	£321,188 (90)	£304,526 (57)	£301,047 (72)	£307,205 (49)

So what does all this mean for the property owning folk of Locks Heath?

Well, with more property on the market than a year ago and asking prices 6% lower, those trying to sell their property need to be mindful that buyers, be they first timers, buy to let landlords or people moving up the Locks Heath property ladder, have much more price information about the Locks Heath property market at their fingertips than ever before.

Those Locks Heath people who are looking to sell their property in 2017 need to be aware of the risks of over pricing their property when initially placing it on the market. Over the last 12 months I have noticed the approach some Estate Agents take is to suggest an inflated asking price to encourage the homeowner and secure the property to sell on their books.  The down side to this is that when offered to the market for the first time, buyers will realise it is overpriced and won’t waste their time asking for a brochure.  They won’t even view the property, let alone make an offer.  So when the price is reduced a few months later the property has become market stale and continues to be ignored.

Whilst the Locks Heath property market has an unassailable demand for property – there is one saying that always rings true –

As long as the property is being marketed at the right price it will sell.

If you want to know if your Locks Heath property is being marketed at the right price, send me a web link and I will give you my honest opinion.