47.6% More Royal Tunbridge Wells Properties on the Market in Last 20 Months:

​

How Tunbridge Wells Home Sellers are Navigating the Storm

In recent months, in certain parts of the country, the British property market has exhibited signs of cooling. 

As a result, homeowners selling their homes face increasing competition from more homes on the market.

The increase in mortgage rates has played a pivotal role in this cooling, taking a toll on potential buyers' incomes, thereby lowering affordability and demand. 

The consequence? Some previously buoyant regions, especially in the South, have experienced price corrections.  

As the market faces this colder front, local factors like the availability of reputed schools, amenities, and public services remain paramount for those looking to buy. 

The Overpricing Trap

In a tougher property market, a common strategy by some agents is to suggest you put your property on the market at an inflated price, only to encourage the homeowner to drop it months later. 

Large estate agencies have the resources to allow many listed homes to remain unsold, whereas smaller agencies rely heavily on consistent sales. Hence, the latter often propose more realistic prices to ensure they get the house sold. 

I have encountered countless Tunbridge Wells homeowners being advised to list their property at an elevated price despite their reservations. Over time, with sparse viewings and no genuine offers, they drop the asking price. The original overestimation meant a prolonged waiting period and they lost homes they wanted to buy. People like to think they are level-headed and wise to such tricks. 

So why does this happen? Remember, greed can take over when an estate agent says they can get you an extra £30k than another agent. That is why estate agents do it.

Of course, it's tempting to price your Tunbridge Wells home ambitiously. While testing the waters with a slightly higher price tag is understandable (we do it often at our agency), refusing to adjust the asking price after the first few weeks if there is no substantial interest could be a costly mistake.  

An overpriced home can stagnate on the market, leading potential buyers to assume there's something wrong with it. The longer it sits unsold, the more it becomes stigmatised.

A lack of early interest regarding viewings should be a clear signal; if there are no serious inquiries and/or offers within the first few weeks, it's imperative to reconsider the asking price. By being responsive and proactive, Tunbridge Wellshome owners can avoid the pitfalls of a stale listing and increase their chances of a successful sale and move.

So why is it so much of an issue now? 

47.6% More Tunbridge Wells Homes are on the Market Today than 20 Months Ago

 2021 was an exceptional year for people moving home. Therewere more buyers than sellers, meaning the number of properties on the market in Tunbridge Wells was reduced. Looking at the numbers… 

The number of properties on the market on 1st January 2021 in the Tunbridge Wells area (TN1 to TN4) was 1,130, but by 31st December 2021, that had reduced to 653.

By the 31st December 2022, that had increased to 701 homes for sale, a rise of 7.4% in only 12 months. 

It has continued to rise and today stands at 964 properties for sale, a rise of 47.6% in 20 months.

With the average number of sales per month in the Tunbridge Wells area 20.3% lower per month in 2023 than in 2021, with greater supply (47.6% more properties for sale) and that slightly lower demand (i.e., sales down 20.3%) … getting your asking price right is vital. 

Determining the Right Price 

Buyers and sellers can arm themselves with information about the Tunbridge Wells property market. Many online platforms provide data about sold property prices in specific areas, giving Tunbridge Wells homeowners a benchmark. Additionally, the time properties spend on the market can provide insights into an agent's efficiency (again the portals like Rightmove and Zoopla show you this). 

When selling, obtaining valuations from multiple agents and critically analysing them is vital. It's crucial to ensure that agents provide evidence to back their valuations, enabling homeowners to make informed decisions.

Rethinking the Selling Strategy

The Tunbridge Wells property market tends to shift collectively, much like boats carried by the same tide. Things are okay if you're not faced with financial losses and can manage an upgrade. Many assume continuous gains are certain when selling your home, but the real profit materialises only when you part with your final property. You may not even realise this profit directly, but it could be used later for elderly care expenses or as a legacy for your family.

Once a property is listed, attention to its online journey is essential. The initial four weeks provide insights into whether your property is priced correctly, gauged by the number of web views on the portals, actual viewings of your property and offers received.

Yet, deciding to reduce the listing price is more than just about attracting buyers; personal timelines and goals play a significant role. For instance, one might ponder: Is there a deadline by when the property must be sold? Can waiting a few months make a difference? These considerations help in making informed decisions on price adjustments.

However, it's beneficial to consider independent or boutiqueagents, like our agency in Tunbridge Wells, in a challenging market. They often tend to offer a more authentic experience and realistic valuations.  

Finally, one strategy employed by some savvy Tunbridge Wells home sellers is to list their property at a slightly lower price to spark more interest and drive up offers. 

Switching Agents or Going Online? 

With a slow property market, one’s patience can wear thin. If you are considering switching agents, sellers should evaluate the current agent's efforts and communication frequency. Another option is multi-agency agreements. However, this approach has recently declined due to associated higher fees.

With their fixed fees and remote operations, online agencies seem like an attractive option. Yet, their one-size-fits-all model can fail to capture the nuances of individual properties, making them less effective in slower property markets.

Renting as an Alternative

Renting out unsold properties is gaining traction where rent is rising. However, prospective landlords should tread carefully, considering growing mortgage interests, tax restrictions, and tenant-related challenges. Again, if that is a potential option for you, do give our agency a call.

Final Thoughts

The current Tunbridge Wells property market is complex. The recent freeze by the Bank of England base rates is a welcome pause. It won’t turn the Tunbridge Wells property market into a frenzy like the stamp duty holiday did in mid-2020, yet it is a welcome respite.

With the right strategies and awareness, Tunbridge Wellshome sellers can effectively navigate these waters, ensuring their property finds the right buyer at the right price.

If you are a Tunbridge Wells property owner, and this article has sparked any questions, do not hesitate to give the office a call.

​1 in 3.9 Royal Tunbridge Wells Homes are in the Private Rented Sector: Problem or Opportunity?

The Resilient Growth of Tunbridge Wells’ Private Rented Sector with a Decade of Opportunities Amid Challenges

As Tunbridge Wells strides into the future, the burgeoning private rented sector has continued to house many of its residents.

The decade-spanning 2011 to 2021 saw a significant surge in the private rented sector, a testament to the enduring appeal and viability of the Tunbridge Wells property market. This growth has unfolded amidst a backdrop of housing challenges, underscoring the pivotal role of private landlords in bridging the housing gap.

In 2011, 21.4% of homes in Tunbridge Wells were in the private rented sector, and in 2021 it had risen to 25.5%.

That means 1 in 3.9 Tunbridge Wells homes are in the private rented sector.

A glance at the housing trajectory reveals a stark reality: the public sector, notably local councils, has been markedly lagging in meeting the housing demand. Over the last two decades, the UK has witnessed a notable shortfall in council house construction (an average of 1,630 for the whole UK per year (that's not a typo!)), compared to 144,910 per year in the private sector.

That is particularly interesting when we look at the averages for the 1950s, 60s and 70s when, on average, 160,570 council houses were built per year compared to 147,960 private sector homes per year. 

The shortfall in council housing has inadvertently propelled the private rented sector to the forefront, making it an indispensable player in Tunbridge Wells’ housing market.

This growth has been a beacon of hope for many; forTunbridge Wells landlords, it's a realm of investment with promising returns, while for Tunbridge Wells tenants, it avails the crucial roof over their heads in a market where buying a home remains a distant dream for many. 

Landlords have found a fertile ground in Tunbridge Wells to nurture their investment portfolios. The town has demonstrated resilience. Although some landlords have chosen to exit the market recently, the demand for rental properties remained robust. The persistent demand underscores the inherent value proposition that Tunbridge Wells holds for both seasoned and aspiring landlords.

However, the blossoming of the Tunbridge Wells private rented sector has its shades of concern.

For tenants, the dream of homeownership is further away as Tunbridge Wells house prices have continued to soar over the last few years (although they have eased recently), making the rental market the only viable option for many. 

It doesn’t help Tunbridge Wells tenants that rents in Tunbridge Wells have risen by 29% since 2016.

Although renting offers flexibility and fewer responsibilities compared to homeownership, the desire for a place to call one’s own is a sentiment that resonates deeply among many Tunbridge Wells tenants.

Amidst the unfolding narrative, we are conscientious letting agents deeply attuned to the market dynamics and the needs of both landlords and tenants. Our expertise in the Tunbridge Wells property market has enabled us to cultivate a harmonious landlord-tenant ecosystem that is not only financially rewarding for landlords but also empathetic to the housing needs of tenants.

The comparative analysis, enriched by statistics, paints a favourable picture of Tunbridge Wells’ private rented sector growth, making it a compelling choice for existing and potential landlords.

The journey of a landlord is one laden with both promise and challenges. The landscape of buy-to-let investments is ever-evolving, and navigating it requires a blend of market insight, foresight, and a trusted partner who understands the local terrain. 

As we look ahead, the horizons are promising for those keen on exploring the opportunities nestled within Tunbridge Wells’ private rented sector.

We invite existing landlords and those nurturing the idea of delving into the Tunbridge Wells rental market to engage with us. Our doors are always open for insightful discussions about making informed investment decisions in a market ripe with potential.

The narrative of the past decade is a telling compass of the potential returns ahead. Being a landlord is a long-term commitment and should not be influenced by short-term market fluctuations. For many landlords, the initial investment is not only about quick returns but also about long-term benefits, such as property appreciation and consistent rental income. Even with rising mortgage rates, the increasing rental demand suggests rents could surge by around 20% to 25% in the coming four or five years, a potential benefit for landlords. 

Moreover, long-term appreciation can offer significant returns when it comes to selling properties, especially considering the leveraged nature of property investments. Even in challenging times, holding onto properties aligns with the foundational reasons many entered the buy-to-let market. Tunbridge Wells landlords play a crucial societal role, filling the gap left by insufficient social/council housing.  

In essence, while entering the Tunbridge Wells buy-to-let market might be daunting now, those already invested should think carefully before exiting.

In Tunbridge Wells, the private rented sector is more than just a market; it’s a community where every landlord’s investment catalyses the broader social good, and every tenant’s satisfaction is a badge of honour we wear with pride. 

Your journey in the Tunbridge Wells rental market is not just a business venture; it's a voyage of impact, and we are here to ensure it's rewarding.