Unveiling the Secrets of Royal Tunbridge Wells' Housing Market: Insights from the 2021 Census

The property market is one of the most important economic indicators, as it can significantly impact the prosperity of both the local and national economy.

Recently, new data from the Census 2021 has become available that sheds light on seldom discussed areas of property, such as the types of properties Tunbridge Wells has, together with how we live in and use our homes.

This data could be of interest to all people. However, it should be fascinating to homeowners and landlords, as it can help them make informed future decisions about buying, selling and renting property.

Furthermore, comparing the data to the national statistics can provide a broader perspective and a better understanding of how we live in our homes in Tunbridge Wells.

In this report, I will analyse seven measurements from the new Census data to assess the town's housing stock and provide valuable insights for potential buyers and sellers.

The seven metrics I have selected provide essential information about the town's demographics, housing types, and tenure.

1. Population and households of Tunbridge Wells.

Knowing the population of a town is essential for a variety of reasons. First and foremost, it helps us understand the demographic makeup of Tunbridge Wells. This information is crucial for local authority officials and businesses as they decide where to allocate resources and how to serve the community's needs (like whether we need to build more new homes, for example).

Looking at demographics allows for better long-term planning and development (and for savvy buy-to-let Tunbridge Wells investors to spot opportunities years in advance).

Additionally, population data can help identify trends and changes in the community over time (I will revisit this in future articles where I will discuss the growth of Tunbridge Wells over the last few decades and what that means for the property market and long-term house prices). Finally, having accurate population figures is necessary for allocating government funding and resources, making it critical for our town's overall health and well-being.

The population of Tunbridge Wells currently stands at 51,200 in 22,200 households.

2. The age profile of the people who live in Tunbridge Wells.

The age profile of a town's population provides valuable insights into the local property market. For example, suppose the town has a large population of retirees. In that case, it is more likely to have a higher demand for bungalows or sheltered accommodation. In comparison, a town with a large student population may have more demand for shared accommodation. Knowing the age profile of the town's population is crucial for targeting the right buyers and understanding the potential market for different types of properties.

16.2% of Tunbridge Wells' population is 65 years and over, compared to the national average of 18.4%.

Again, I will delve into this in more detail in my articles on the Tunbridge Wells property market in the coming months.

3. Tunbridge Wells household composition - one-person households vs family households.

Understanding household composition is crucial for predicting the demand for different properties. For example, if the town has a large population of single people, there may be more demand for one-bedroom apartments or studios. However, if the town has many families, there may be more demand for three or four-bedroom houses and schools.

32.7% of Tunbridge Wells households are one-person households (compared to 30.2% nationally), and 62.7% of Tunbridge Wells households are single-family households (compared to 63.0% nationally).

The remainder is made up of shared accommodation etc.

4. Tunbridge Wells accommodation types - house or apartment.

Knowing the accommodation type is critical in understanding the local property market's demand and supply. For example, if the town has many apartments, it may indicate that the town has a higher demand for properties with lower maintenance costs or land is too expensive to build houses on. Conversely, if the town has a higher than the national (or regional) average number of houses, it may indicate that it has more families looking for larger properties.

61.3% of the homes in Tunbridge Wells are houses (compared to the national average of 77.9%).

5. Number of bedrooms in Tunbridge Wells.

The number of bedrooms is another crucial factor that affects the local property market. Knowing the average number of bedrooms in the town can help predict the demand for different property types. For example, if the town has many four or five-bedroom properties, it has more affluent buyers looking for larger properties.

• 19.2% of Tunbridge Wells homes are one-bed households (11.4% nationally)
• 29.9% of Tunbridge Wells homes are two-bed households (27.1% nationally)
• 27.4% of Tunbridge Wells homes are three-bed households (40.4% nationally)
• 23.5% of Tunbridge Wells homes are four-bed or more households (21.1% nationally)

6. Occupancy rating for Tunbridge Wells bedrooms - whether a property is under- occupied or overcrowded.

Knowing the occupancy rating for bedrooms is critical in understanding the local property market's demand and supply. For example, if the town has many under-occupied properties, it could indicate people living in homes too big for their daily needs.

32.4% of Tunbridge Wells homes have two or more spare bedrooms (compared to the national average of 42.7%).

7. Tenure of Tunbridge Wells households - whether owned outright, owned with a mortgage, social housing or privately rented.

Understanding households' tenure is essential in understanding the local property markets' demand and supply. For example, if the town has a high number of households in social housing, it may indicate that there is less demand for private rental properties. Conversely, if the town has an increased number of households owning properties outright, it usually suggests that there are more older homeowners (compared to younger homeowners)

• 28.9% of Tunbridge Wells households own their home without a mortgage (compared to 32.8% nationally)
• 31.9% of Tunbridge Wells households own their home with a mortgage (compared to 29.7% nationally)
• 13.7% of Tunbridge Wells households live in social housing (compared to 17.1% nationally)
• 25.5% of Tunbridge Wells households live in private rented accommodation (compared to 20.4% nationally)

So, what is all this telling us?

The seven metrics discussed in this article on Tunbridge Wells provide valuable insights into the town's demographics and the future of Tunbridge Wells’ property market's demand and supply.

As a local estate agent, having a deep understanding of these metrics can help me better target potential buyers, predict the demand for different types of properties and provide valuable insights and advice to Tunbridge Wells house sellers, buyers and buy-to-let landlords.

If you are considering moving home in 2023 and want to know how this data will affect your buying or selling decisions, please do not hesitate to contact me for a personalised no- obligation no-cost consultation.

I am here to help you make informed decisions and find your dream property in this thriving town of Tunbridge Wells.

Royal Tunbridge Wells Homeowners Pocketed £341k Each in the Last 20 Years

 

• The average house price in Tunbridge Wells has increased by 176.9% to £533,000 in the last 20 years, a profit of £340,500

• That means, when adjusted for inflation in those two decades, Tunbridge Wells house prices have risen in real terms by 104.8%

• What does this mean for existing Tunbridge Wells homeowners and first-time buyers trying to get on the Tunbridge Wells property ladder?

Since 2001, UK average house prices have risen by an astonishing 187.2% across the UK, while in London the figure is 247.6%.

Looking back at the people that bought in those first few years of the new Millennium, few of those buying or selling property in 2001 could have forecast the massive financial impact that their decision then would have on the rest of their lives.

In those years, there have been winners and losers, where some local buyers have made hundreds of thousands of pounds and renters in the area have paid out tens of thousands of pounds and yet been unable to buy their first home – but life is often not as simple as that, so in this article I wanted to discuss the matter further.

The average house price in Tunbridge Wells has increased by 176.9% to £533,000 in the last 20 years, a profit of £340,500.

Now of course these are average prices and don’t take inflation in to consideration.

Yet even when adjusted for inflation, Tunbridge Wells house prices have still risen by 104.8% in the last 20 years.

Characteristically, the longer a homeowner has owned their property, the larger the gain when they sell. Yet most of these profits are never seen by homeowners. It has never been money in the bank unless you sell up and downsize or move somewhere cheaper. Instead, these gains are re-invested back into the housing market when they buy their next home.

So, whether the gains are banked or tied up in their bricks and mortar, it looks like all the homeowners are in the driving seat.

What about all the first-time buyers, priced out of the market and unable to get on to the property ladder?

Are the young of Tunbridge Wells losing out again?

Reading the newspapers you would think so, yet nothing could be further from the truth. In fact …

It’s 22.8% cheaper today to buy a house in Tunbridge Wells compared to 2007

That isn’t a typo!

In 2002, 28.4% of a first-time buyer’s household income went on the mortgage payments. Today, that figure stands at 37.7%, yet in 2007, it was 48.8% ... hence why it’s cheaper today!

Of course, for most young Tunbridge Wells potential first-time buyers, the other largest barrier to home ownership is the matter of raising an adequate deposit.

Rising rents (and future energy prices) won’t help and will in fact make this problem worse, giving ambitious first-time buyers not much left at the end of the month to save a deposit for their first home.

With soaring house prices, this means the amount Tunbridge Wells renters need to save for their deposit is growing year on year.

For these annoyed renters, there is the unpleasant irony that if they could only get on the housing ladder, they would find themselves better off. They would spend a lower proportion of their monthly take home pay on keeping a roof over their heads.

Some people in the press have suggested the older generation, with all the equity tied up in their homes over the last 20 years, should release some of the money and give it to their children or grandchildren to help them on the ladder, maybe?

Reports in the press have also described many homeowners in their 60’s (and older) changing their plans to move home. Many were planning to downsize, to release the tied-up equity in their home. That equity would either be used to invest in the bank to produce an income for them and/or to help their children (sometimes even grandchildren) on to the property ladder.

Yet with the interest paid by banks and building societies on any lump sum being very low, to many mature homeowners it hardly seems worthwhile making the move to downsize. This means many younger would-be first-time buyers are missing out on help from the Bank of Mum and Dad (or the Bank of Grandad and Grandma) with their deposit.

However, the problems caused by low interest rates could also be their saviour.

Many older homeowners have turned to equity release, thus allowing them to get hold of a share of the equity amassed in their property, in exchange for a tax-free lump sum of cash.

Cash that could be used to help with deposits for their children/grandchildren?

The mature homeowner then stays in their larger family home and helps their family buy a property.

Whilst I am not a mortgage adviser (and you must take proper advice from a qualified mortgage broker), equity release mortgages don’t have end dates and the interest payments are rolled up (until you pass away). This means that there aren’t any monthly payments.

The interest rate you pay is normally fixed for the mortgage and because interest rates are so low, that means the debt shouldn’t balloon up. And should you decide to sell in a few years’ time, you just pay back the capital, redemption fee and the small amount of interest accrued.

Now of course, that does mean there will be less for your offspring to inherit when you pass away.

Equity release mortgages though have had some bad press recently. In the past they were unregulated and pricey. Yet today, there is more protection for borrowers.

One answer to the growing interest debt is to pay part or all the monthly mortgage interest charged, yet you must have the income for that.

You also need to take advice on how the equity release will affect your liability for nursing home fees and inheritance tax. Also, if only one person in your home is the owner of the property, if that homeowner dies, the partner who is not on the mortgage (because only owners can go on a mortgage) won’t have any rights to stay in the family home.

Finally, if you are planning to move, don’t just compare the interest rate, but the redemption charge for early repayment – some of them can be very high.

My advice – take professional advice and speak to your family and involve them. Yes, we have all built up some amazing equity in our homes, and yes, there is potential to help the younger generations with that wealth. Just go in with your eyes open and know all the facts, all the pros and all the cons – then decide what is best for you with all that information to hand.

What are your thoughts, as a mature Tunbridge Wells homeowner or a first-time buyer, on this? It would be good to hear from you.