Royal Tunbridge Wells Property Market Saw An Unpredicted Late 2016 Boost of 28%

Well, it doesn’t seem like two minutes ago that it was Christmas – and now it’s all over! One cold December morning, after arranging the office’s Christmas cards I thought I would nip out for a quick festive coffee and over-priced mince pie at my favourite local coffee shop the Fine Grind Espresso Bar.  I met an old client of mine in the coffee shop and we got talking about the Royal Tunbridge Wells property market. I had just completed my research for my next blog article and I would like to share with you the parts of the conversation relating to the Royal Tunbridge Wells property market.

He asked me what my thoughts were about the last half of the year in regard to the Royal Tunbridge Wells property market and if there were any great buy to let deals around. In reply I said that, in my view, shrugging off the uncertainty of the initial post Brexit vote, I have seen an increase in supply and a rise in the number of properties selling at the lower to middle end of the market, meaning both first time buyers and buy to let landlords have been returning in the last few months – proof the market is beginning to bounce back.

So let’s look at the numbers ..

In November 2016, according to the three main property portals (Rightmove, Zoopla and OnTheMarket) there were a total of 547 properties for sale in Royal Tunbridge Wells (within 3 miles of the centre of Royal Tunbridge Wells to be exact). In November 2015, there were only 426 properties for sale, a rise of 28%.

When I split it down into bedrooms (note things like building plots and part commercial/part residential etc won’t be in these figures so the numbers below wont exactly match up to those in the above paragraph).

	# Properties on the market in Nov 2015	# Properties on the market in Nov 2016	Per cent Change
5+ Bedrooms	59	83	+41%
4 Bedrooms	76	121	+59%
3 Bedrooms	113	125	+11%
2 Bedrooms	128	162	+27%
1 Bedroom	45	50	+11%

.. and when I looked at type of properties  .. it got even more interesting

Type of Property	# Properties on the market in Nov 2015	# Properties on the market in Nov 2016	Per cent Change
Detached	121	149	+23%
Semi	78	115	+47%
Terraced	33	42	+27%
Flat	152	198	+30%

As the number of Royal Tunbridge Wells properties put up for sale has soared by 28%, homeowners have become more realistic about how much their homes are worth. This increase in homeowners wanting to sell suggests there is renewed confidence in the Royal Tunbridge Wells property market and there are also signs that people are being more realistic about pricing their property.

As you can see, there has been a significant uplift in flats and semi-detached properties, which means there is greater choice for first time buyers and landlords. So with a combination of realistic pricing and more properties on the market – both first time buyers and landlords alike might be able to pick up a few bargains!  

Royal Tunbridge Wells Property Market – Q4 2016 Round Up

Well, wasn’t 2016 been eventful. The ups and downs of Brexit, the Queen’s 90^th, Andy Murray winning Wimbledon, Trump, Bake Off to Channel 4 and something close to the hearts of every buy to let landlord and homeowner in Royal Tunbridge Wells ... the Royal Tunbridge Wells property market.

So, let’s look at the headlines for the Royal Tunbridge Wells property market...

In the last month, Royal Tunbridge Wells property values rose by 2.08%, leaving them, year on year 12.5% higher, whilst interestingly, Royal Tunbridge Wells asking prices are down 2.0% month on month. All three statistics go to show the Royal Tunbridge Wells property market has recovered well after the summer lull, which was worsened by the uncertainty surrounding the EU vote back in June. Irrespective of all the issues, the average value of a Royal Tunbridge Wells home now stands at £495,100.

Generally, Royal Tunbridge Wells asking prices continue to hold up well, as asking prices are 4.7% higher year on year. At this time of year, asking prices tend to drop on the run up to Christmas and locally, they have dropped by 2.0% this month (November 2016), although this still compares well with last year’s drop in Royal Tunbridge Wells asking prices, as we saw asking prices drop by 1.1% in November 2015.

Now it’s true to say, after chatting with fellow property professionals in Royal Tunbridge Wells, all of us have seen the number of property sales fall slightly, suggesting a slowing market, but it is very early days and it could be the time of year. Also, the numbers are limited, so it’s interesting to take note from a recent survey by the Royal Institution of Chartered Surveyors, stating new buyer enquiries and new instructions are falling at the same rate, suggesting that there will not be a downward pressure on property values.

Looking at the figures for the UK (as we can’t just look at Royal Tunbridge Wells in isolation), property values are generally rising slower than a few years ago, but on a positive note, there's still growth across the UK. You see, slowing property value growth isn't solely Brexit related, but after a number years of double digit rises in property values, affordability has weakened and cooling price growth is widely seen to be a natural correction of the market.

On the other hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.

 So, what will happen in 2017 in the Royal Tunbridge Wells property market?

Some say until we know what type of exit the UK will make from the EU it is hard to evaluate the outcome. Although, I believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Royal Tunbridge Wells) housing market as a whole. As I have mentioned time and time again over the last few months, the biggest issue is demand outstripping supply when it comes to the number of households required to house us all. Royal Tunbridge Wells has an ever-growing population: with immigration (we still have at least two years of free movement from EU members into the UK), people living longer and the fact we need thousands of additional households as the country has nearly 115,000 divorces a year (where one household becomes two households).  These are interesting times ahead!