“How
much would it cost to buy all the properties in Royal Tunbridge Wells?”
This fascinating question was posed by the 11-year-old son of
one of my Royal Tunbridge Wells landlords when they both popped into my offices
before the Christmas break (doesn’t that seem an age away now!). I thought to
myself, that over the Christmas break, I would sit down and calculate what the
total value of all the properties in Royal Tunbridge Wells are worth … and just
for fun, work out how much they have gone up in value since his son was born
back in the autumn of 2005.
In the last 11 years, since the autumn of 2005, the total value of
Royal Tunbridge Wells’ property has increased by 55% or £3.64 billion to a
total of £10.26 billion. Interesting, when you consider the FTSE100 has only
risen by 30.78% and inflation (i.e. the UK Retail Price Index) rose by 37%
during the same 11 years.
When I delved deeper into the numbers, the average price
currently being paid by Royal Tunbridge Wells households stands at £446,688.…
but you know me, I wasn’t going to stop there, so I split the property market
down into individual property types in Royal Tunbridge Wells; the average numbers
come out like this ..
|
Royal Tunbridge
Wells Property Market
|
|||
|
Average Value of a
Detached Property
|
Average Value of a
Semi-Detached Property
|
Average Value of a
Terraced/Town House Property
|
Average Value of an
Apartment
|
|
£683,378
|
£445,952
|
£310,231
|
£293,582
|
... yet it got even more fascinating when I
multiplied the total number of each type of property by the average value. As
detached houses are so expensive, when you compare them with the much cheaper
terraced/town houses and apartments, you can quite clearly see how valuable
detached properties are in terms of total pound note value, when compared to
the value of the terraced/town houses and apartments.
|
Total Value of all
the Royal Tunbridge Wells Detached Properties
|
Total Value of all
the Royal Tunbridge Wells Semi-Detached Properties
|
Total Value of all
the Royal Tunbridge Wells Terraced/Town House Properties
|
Total Value of all
the Royal Tunbridge Wells Apartments
|
|
£3,402,539,062
|
£2,841,606,144
|
£1,422,719,366
|
£2,597,613,536
|
So, what does this all mean for Royal
Tunbridge Wells? Well as we enter the unchartered
waters of 2017 and beyond, even though property values are already declining in
certain parts of the previously over cooked Central London property market, the
outlook in Royal Tunbridge Wells remains relatively good as over the last five
years, the local property market was a lot more sensible than central London’s.
Royal Tunbridge Wells house values
will remain resilient for several reasons. Firstly, demand for rental property
remains strong with continued immigration and population growth. Secondly, with 0.25 per cent interest rates,
borrowing has never been so cheap and finally the simple lack of new house
building in Royal Tunbridge Wells not keeping up with current demand, let alone
eating into years and years of under investment – means only one thing – yes it
might be a bumpy ride over the next 12 to 24 months but, in the medium term,
property ownership and property investment in Royal Tunbridge Wells has always,
and will always, ride out the storm.
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