How the 23.3% Saleability Drop in the Royal Tunbridge Wells Property Market Might Impact Your 2024 Home Moving Plans

The Tunbridge Wells housing market, like many others, has experienced a notable shift in 2023. 

The percentage of home sales agreed and moved (completed) compared to those withdrawn from the market unsold has decreased relative to 2022.

Looking at independent data for the Tunbridge Wells area (TN1 to TN4) …

 In 2022, 64.7% of properties that left the books of Tunbridge Wells estate agents agreed a sale, exchanged contracts, and the owners moved home

(1,776 Tunbridge Wells area properties exchanged and completed vs 966 properties that withdrew from the agent’s books, unsold).

In 2023, 49.6% of properties that have left the books of Tunbridge Wells estate agents agreed a sale, exchanged contracts, and the owners moved home

(1,123 Tunbridge Wells area properties exchanged and completed vs 1,142 properties that withdrew from the agent’s books, unsold up to the 20th December 2023), meaning there has been a …

23.3% proportional reduction in the saleability of

Tunbridge Wells homes between 2022 and 2023

It's interesting to compare that with the South East regional and national stats for both years.

In the South East, 63.46% of properties were exchanged, completed, and moved in 2022, compared to 47.54% in 2023, a drop of 25.1%. Nationally, 65.55% of properties were exchanged, completed and moved in 2022 compared to 52.39% in 2023, a decline of 20.1%.

This could raise concerns among local homeowners and potential sellers. As a seasoned estate agent in Tunbridge Wells, I have observed these trends closely and offer insights into this phenomenon and strategies to enhance your home's saleability in 2024.

Understanding the Dip in Saleability in Tunbridge Wells

Economic Influences: much like the rest of the UK, Tunbridge Wells has been subject to financial pressures such as inflation and Bank of England interest rate increases. These factors have affected buyer affordability, leading to a more cautious approach to home purchasing.

Market Saturation and Buyer's Market: 2023 saw a surge in Tunbridge Wells properties on the market. This increase changed the Tunbridge Wells property market from a strong seller's market to a balanced market or even a buyer's market in some parts of Tunbridge Wells throughout 2023, where the availability of choices led to a more selective purchasing behaviour.

Changing Buyer Preferences: In Tunbridge Wells, buyer preferences have evolved. There's a growing demand for properties that offer flexible living spaces, energy efficiency, and modern amenities, which not all available homes meet.

Local Economic and Social Factors: Tunbridge Wells’ local economic and social developments, such as job market shifts and community developments, have also played a role in influencing the housing market dynamics.

Six Tips to Maximising Your Tunbridge Wells Home's Saleability in 2024

Tunbridge Wells properties are still selling, yet not at the rate they were in 2021 and 2022.

Just under 5 out of 10 local people in 2023 have sold and moved (i.e., the 49.6% figure mentioned above). If you want to avoid being in the 5 out of 10 Tunbridge Wells people who were unable to sell and move this year, there are some things that you can do to stack the cards in your favour. 

To start with, the saleability levels in Tunbridge Wells in 2023 are very similar to the saleability rates between 2014 and 2019.  

1. Strategic Pricing: Understanding the local market is critical. Homes priced correctly from the outset are more likely to attract serious buyers. This requires a deep understanding of the local market trends, something a knowledgeable estate agent can provide.

 

2. Tailoring to Buyer Preferences: Align your Tunbridge Wells home with current trends. This could mean investing in creating flexible work-from-home spaces, upgrading energy systems, or modernising key areas like kitchens and bathrooms. However, before you start spending tens of thousands of pounds on this, please do pick up the phone so I can give you the best advice for the type of property you own in Tunbridge Wells. I have lost count of the number of times I've seen a homeowner spend money on the wrong things without advice, only to find the money they spent did nothing for the value of their home nor made it more saleable. 

 

3. Effective Marketing: Utilise a comprehensive marketing strategy that includes high-quality photography, possibly virtual tours, and leveraging online social media and portals. As experts in the Tunbridge Wells property market, we can target the correct demographic and present your home in its best light.

 

4. Preparing for Viewings: First impressions matter. Ensure your home is well-presented, clean, and decluttered. We can offer personalised advice on the presentation of your home to appeal to potential buyers.

 

5. Flexibility and Negotiation: Be prepared for negotiation and show flexibility in terms of viewing times and conditions of sale. This approach can make your property more appealing compared to others on the market.

 

6. Capitalising on Local Knowledge: The unique charm and amenities of Tunbridge Wells should be highlighted. As a local market expert in the town, I can help showcase these aspects effectively to potential buyers.

The decrease in the saleability rate reflects broader economic trends and evolving buyer preferences. However, with the right approach and strategies, selling your home in 2024 can be a realistic and successful endeavour. 

By understanding the market, pricing strategically, aligning with buyer preferences, and utilising effective marketing and presentation techniques, you can significantly enhance your chances of a successful sale. 

As a Tunbridge Wells property market expert, I offer more than just transactional advice; I provide insights into what makes our local Tunbridge Wells market tick. By partnering with a knowledgeable estate agent, you can confidently navigate these challenging times and maximise your chances of a successful home sale in 2024.

is Buy-To-Let Ethical?

​The Changing Landscape of Royal Tunbridge Wells’ Housing Market:

Exploring the Ethical Dimensions of Buy-to-Let Investment.

 The town of Tunbridge Wells has witnessed a profound transformation in its housing landscape over the last few years, and the surge in private renting has led to significant debates about the morality of the buy-to-let market. 

Let us look at the current statistics compared to 40 years ago to show the seismic shift. Looking at our local authority area of Tunbridge Wells Council. 

9,268 Tunbridge Wells Households are in the Private Rented sector now, representing 19.22% of all homes in our local authority area. 

Interesting when we compare this to the 1981 numbers for Tunbridge Wells. 

In 1981, 5,762 Tunbridge Wells Households were in the Private Rented Sector, representing 16.59% of all homes in the local authority area.

This has started prompting discussions about the role of the Baby Boomer Generation in exacerbating the housing crisis and the ethical implications of the buy-to-let phenomenon. 

This article delves into the factors contributing to Tunbridge Wells' housing challenges, examines the generational economic imbalance, explores the history of housing policy, dissects the impact of financial deregulation, and evaluates the moral questions surrounding the buy-to-let market. 

Generational Imbalance and Economic Disparities

The housing crisis in Tunbridge Wells has ignited a debate over whether the Baby Boomer Generation, aged between 59to 76, bears responsibility for the present situation. Born after World War II, this generation experienced unparalleled economic growth and prosperity during the 1970s and 1980s, benefiting from improved education, government subsidies, rising property prices, and technological advancements. However, critics argue that the success of Baby Boomers has contributed to a generational economic imbalance, leaving their children struggling with soaring rents and burdensome mortgages.

A Glimpse into the Past of the Tunbridge Wells Property Market

To comprehend Tunbridge Wells' current housing challenges, one must trace the key events that shaped its housing market. The mass construction of council housing during the 1950s and 60s, followed by the selloff of many council houses in the 1980s under Margaret Thatcher's Government, is blamed by many for their role in altering the market dynamics.  

To give you an idea of the number involved …

7,029 Tunbridge Wells Households are now in the Social Housing sector (Council Houses & Housing Association), representing 14.58% of all homes in our local authority area.

Interesting when we compare this to the 1981 numbers for Tunbridge Wells. 

In 1981, 8,163 Tunbridge Wells Households were in the Social Housing sector, representing 23.51% of all homes in ourlocal authority area.

As you can see, the numbers are not seismically different, are they? So, what are the other issues that caused this? 

The early 1990s witnessed skyrocketing interest rates (15% at one point), leading to widespread repossessions in Tunbridge Wells (and the UK as a whole). This was one of the catalysts that contributed to the underlying housing crisis of today.

Financial Deregulation and Buy-to-Let Investments

Another catalyst was risky lending practices in the UK and USA. In the early 2000s, UK Banks started introducing 100% mortgages and even riskier lending practices, with Northern Rock lending 125% mortgages (and we know what happened to them). 

All this lending was built on the back of ‘derivative swaps’ between all the world's banks (they would sell the debts (i.e. mortgages) between each other to make money). 

The problem was that many of these derivatives contained lots of safe, low-risk low-profit mortgages and some high-risk profitable ‘sub-prime’ USA mortgages. This had been caused by a change in the law in the USA in the mid-1990s with the easing of lending rules in the US through the Community Reinvestment Act in 1995, which allowed for sub-prime lending.

So, when the money markets started getting cold feet in 2007 because the banks didn’t know if their derivatives had a small or large number of high-risk sub-prime mortgages, the banks stopped lending to each other (because they were worried they wouldn’t be paid back as many of these sub-prime mortgages were defaulting in 2006/7 and being repossessed).

This had a ripple effect on the UK's housing market. The UK banks had much smaller funds to lend out (because they could borrow money from the money markets for the reasons above), so they stopped lending to high-risk UK borrowers (i.e. 95% first-time buyers), whilst at the same time they increased lending to lower-risk landlords with buy-to-let mortgages with a 25% deposit and a stable income.

Millennials and the Buy-to-Let Controversy 

The millennial generation, born between the mid-1980s and late 1990s, has been particularly affected by the surge in buy-to-let investments. These young adults, shaped by the digital revolution, need help entering the property market due to competition with buy-to-let landlords. Critics often portray Tunbridge Wells landlords as greedy individuals capitalising on the housing crisis, exacerbating the sense of social despair among millennials. However, as I wrote in the Tunbridge Wells property blog a few weeks ago, 64% of Tunbridge Wells landlords are not increasing their rents. (If you want to read that article – click here 

Role of Property Developers and Housing Shortage

In response to the growing housing demand, property investors have stepped up, acquiring dilapidated properties and repurposing them into habitable homes. This has provided a partial solution to the shortage of available housing, particularly for those who rely on rental properties provided by landlords and property developers. 

Ethical Dimensions of Buy-to-Let Investments

The ethical considerations surrounding the Tunbridge Wellsbuy-to-let market are complex and multifaceted. On the one hand, Tunbridge Wells buy-to-let landlords have filled a void in the Tunbridge Wells housing market, providing much-needed shelter to many Tunbridge Wells tenants. On the other hand, concerns arise regarding exploitative practices by a handful of rogue landlords and the potential commodification of a basic human need – shelter.

The bottom line is, as the population of Tunbridge Wells grows, there needs to be more properties being built for everyone to have a decent roof over their head. The rogue landlords of Tunbridge Wells need to be put out of business. Finally, tenants should expect a more regulated rental market (which they have achieved over the last few years), with greater security for tenants, where they can rely on good decent Tunbridge Wells landlords providing high standards for their safe and modernised home. 

Addressing the Crisis and Moving Forward

To alleviate Tunbridge Wells' housing crisis, a multifaceted approach is necessary. Fairer regulations for landlords, enhanced tenant protections, and incentivising property development could contribute to a more balanced housing market. Exploring innovative models from European countries, where renting is more prevalent, could provide insights into creating a system that ensures decent and affordable housing.

Final Thoughts

Tunbridge Wells' housing market has undergone substantial changes over the years, with the rise of private renting and the proliferation of buy-to-let investments playing a pivotal role. The generational economic imbalance and ethical concerns associated with the buy-to-let market have sparked passionate debates about the responsibility of different generations and the moral implications of housing as an investment. 

As Tunbridge Wells continues to grapple with housing challenges, collaborative efforts between policymakers in local and central Government, developers, Tunbridge Wells landlords, and tenants are essential to creating a housing landscape that is fair, ethical, and accessible to all.

So, my final question is to you, the reader of this article. 

Only you can decide if buy-to-let is immoral, but let me ask this question first.

If these Tunbridge Wells buy-to-let landlords had not taken up the slack and provided 3,506 extra homes in the last 40 years for people in the area, where would these tenants be living now?

During the height of council house building in the 1950s, UK local authorities were building, on average, around 147,000 council houses a year. In the last decade, UK local authorities have only averaged building around 1,400 council homes a year.

It would cost Tunbridge Wells Council £445.3m to build all those 3,506 buy-to-let homes today that local landlords have funded themselves 

(a figure that assumes the council build on land they own).

That building sum would take up 100% of our local authority's budget for the next eight to ten years.

All this conjures up many questions such as: 

•  Is the buy-to-let practice immoral or in fact necessary? 
• Should, as recently voiced, landlords be restricted to one rental property each?  
• What would our housing landscape be like without rented accommodation? 
• Of the 9,268 Tunbridge Wells households that are in private rented accommodation, how many of those have little or no option other than to rent, so where would they be if there was no private rented sector? 

These are my thoughts; tell me yours!

 

What Was the Average Royal Tunbridge Wells House Price in 1952?

​

Well, what a weekend the Jubilee was. Street parties, gatherings in the park, the purple bunting, egg and cress sandwiches, union jack flags, cheese and pineapple on cocktail sticks, and let's not forget the trifle – the Platinum Jubilee Party.  And no decent party is worth its salt without a game or a quiz.

So, if you have post-Jubilee blues, let me ask you, how much was the average Tunbridge Wells house worth in 1952?

To start with, let me look at what a property is worth today in Tunbridge Wells.

The average price paid for a property in the Tunbridge Wells area in the last 12 months was £531,440. 

Now, let's go back to 1952. Sir Winston Churchill was the Prime Minister, Newcastle won the FA Cup, London was covered in the Great Smog, free prescriptions on the NHS ended (it cost 1 shilling or 5p in new money), and King George IV, at the age of 56 passed away on the 6th February, meaning Princess Elizabeth became the Queen - as for housing…

The average price of a Tunbridge Wells home in 1952 was £4,339.

This means Tunbridge Wells house prices are 121 times higher since 1952. 

Yet over the last 70 years, the country has been subjected to 4.5% per annum inflation.

The 1952 Tunbridge Wells home is equivalent to £83,448 today when adjusted for inflation.

This means Tunbridge Wells house prices have increased by 504.8% in real terms since 1952.

So, does that mean house prices are more expensive today compared to 1952?

In 1952, the average annual male wage was £452, 8 shillings and 1 pence, meaning the average Tunbridge Wells house was 9.59 times the average wage. Today the average home is 8.85 times the average wage.

Yet let us not forget the average mortgage payment in 1952 was £11 per month. The average Brit earned £34 per month, meaning 32.3% of the household income was going on mortgage payments, whilst nationally today, according to the Nationwide, it stands at 28%. 

It's cheaper, in real terms, to buy a property in 2022 than in 1952.

 And that’s the point, some things in ‘real terms’ (real terms being true spending power of the money after taking into account wages, costs and inflation) were more expensive and some cheaper 70 years ago. For example, in 1952, petrol was equivalent (in today’s inflation-adjusted prices) to £1.02 per litre, a pint of beer £2, half a dozen eggs £2.20, cheddar cheese £2.40 per 500g, a basic radio £430, a Hoover £530 and a 12-inch TV £1,600.

So back to property, the Queen’s reign has seen some amazing house price rises in the UK, yet that growth hasn’t always been in constant upwards direction as we have had a couple of dips along the way.

We had a house price crash in 1990, when the average value of a Tunbridge Wells property dropped from £130,582 to £108,147 in 1996, only for them to start rising again.

 

Tunbridge Wells saw another house price crash between 2008 and 2009, and the average house price dropped from £390,627to £333,015 in a year.

 

So, what else has changed about property and housing since the Queen came onto the throne?

 

In 1952, only 32% of people owned their own home, whilst 50% of people rentedfrom a private landlord and 18% rented a council house.

 

By the time of the Silver Jubilee in 1977, 56% of people owned their own home, with 12% of people privately renting and 32% rented from the council.

 

Come the Golden Jubilee in 2002, 70% of people owned their own home, with 11% of people privately renting and 19% rented from the council.

 

Today, 63% of people own their own home, 20% of people privately rent and 17% rent from the council.

 

So, to conclude, as we look forward into the 21st century, I am sure the property market will be totally different again in 70 years. 

 

I hope you enjoyed reading this article and do share it with your friends if you find it interesting.

 

PS for all you Rightmove fans, the average Tunbridge Wells apartment in 1952 was worth £2,388, and a terraced home in Tunbridge Wells could be bought for on average £3,557.