Wednesday, 18 September 2019

Royal Tunbridge Wells Property Market Update Summer 2019

The foundations of the Royal Tunbridge Wells Property Market over the summer have continued to be principally sound; yet the existing political macroclimate means that the critical element of consumer confidence has been reduced and that is triggering some potential Royal Tunbridge Wells property buyers and Royal Tunbridge Wells house sellers to falter slightly and hang fire making any firm decisions on property.

With record low interest rates at 0.75%, low unemployment rates of 3.8%, and decent mortgage availability (even those with low deposits - there were 224 mortgage deals available on the day of writing this article where only a 5% deposit was required and 5 main stream lenders that would offer 100% no deposit mortgages), Royal Tunbridge Wells buyers have a lot going in their favour, aside from the perceived political uncertainty. 

Interestingly, Rightmove have stated there are more properties for sale today in the Country, than at any time since 2016, and Royal Tunbridge Wells follows that trend. Even with that in mind, property values have remained reasonably stable as The Land Registry has just released its House Price Index for Royal Tunbridge Wells and the surrounding locality and it makes very interesting reading.

Overall, property values in the Royal Tunbridge Wells area are 3% lower than a year ago as the average property value in Royal Tunbridge Wells now stands at £493,900.

When I looked at the types of Royal Tunbridge Wells’ properties, a slightly different picture appeared ..

·     Royal Tunbridge Wells Detached homes dropped by 2.3%
·     Royal Tunbridge Wells Semi-detached homes dropped by 2.2% 
·     Royal Tunbridge Wells Terraced/Town-House dropped by 2.8%
·     Royal Tunbridge Wells Flats/Apartments dropped by 4.7%

and splitting down the types of Royal Tunbridge Wells into property types ..

·     Royal Tunbridge Wells Detached £846,100
·     Royal Tunbridge Wells Semi-Detached £459,700
·     Royal Tunbridge Wells Terraced/Town-House £388,700
·     Royal Tunbridge Wells Flats/Apartments £282,300

Yet, Royal Tunbridge Wells Property Market Blog readers will know I always like to measure the health of the Royal Tunbridge Wells property market not only by house prices but transaction levels as well ..

1,128 properties were sold in the last year in Royal Tunbridge Wells,
 lower than the 10-year average of 1,386 properties per annum

Considering the uncertainty the Country has been through in the last three years with the ‘B’ word issue, I don’t think that’s too bad and shows the underlying resilience of the Royal Tunbridge Wells property market.

Now looking forward towards the end of the year .. how will Royal Tunbridge Wells’ house values change under the new Prime Minister?

Royal Tunbridge Wells buy-to-let landlords and Royal Tunbridge Wells first-time buyers seem to be sustaining their preceding activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Royal Tunbridge Wells homes on the market, which not only offers them greater choice, but aids with their negotiations. The suggested Stamp Duty changes made me look at previous Stamp Duty changes in the last decade and their effects have been rather short term.

That means those selling their homes in Royal Tunbridge Wells need to be realistic with their pricing, and, as most sellers also buy a property, what you might lose on your sale you will make up on the purchase.  

BoJo, Brexit … to be honest are all short-term distractions from the long-term issues of the UK and Royal Tunbridge Wells property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply, meaning irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices will always in the medium to long term remain stable and increase.

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