Why Does it Still Take 124 Days to Buy a Royal Tunbridge Wells House?

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As an experienced Tunbridge Wells estate agent, I have seen many homeowners frustrated by how long it takes to buy and sell their property and complete the sale. 

 

In this article, I will explain why buying and selling a home locally takes so long and how you can speed up the home-buying process.

 

One of the main reasons why it takes so long to sell a house is the conveyancing process. 

 

Conveyancing refers to the legal process of transferring property ownership from the seller to the buyer, which is the time between the offer being accepted and the completion of the sale.

 

In the last 12 months, it has taken 125 days on average from the time an offer is accepted to the completion of the sale

(up from 117 days in 2021).

 

125 days or just under 18 weeks is a long time on anyone's calendar!

 

This can be frustrating for everyone as their life is on hold for over four months, waiting for the conveyancing (and mortgage) to get sorted.

 

The problem with the conveyancing process is that it needs to be fit for purpose in the 21st Century.

 

Many blamed local authorities for taking too long to complete their searches (a vital part of the conveyancing process), often taking up to seven or eight weeks to complete in 2021. 

 

However, the national average in the last nine months has now dropped to two weeks (although there are some local anomalies) ... and it still takes just as long to sort the conveyancing out.

 

So let me look at the local stats first, then discuss what can be done.

 

In the last 12 months, it has taken 124 days on average from when an offer is accepted to the completion of sale (up from 118 days in 2021).

 

Interestingly, it only took an average of 54 days from putting the home on the market to agreeing on the offer – although anecdotal evidence is suggesting that figure is getting higher for the most recent sales in the last quarter.

 

(Tunbridge Wells is TN1 to TN4).

 

So, what are the issues?

 

Firstly, the number of annual property sales nationally has increased by 50% in the past decade, up from 803,800 in 2012 to over 1,263,440 in 2022. That means more work for conveyancing firms. 

 

However, the number of conveyancing firms decreased by 10% in that period, meaning the number of conveyancing cases a solicitor was dealing with increased from an average of the early 40’s at the end of 2012 to the late 70’s by 2022. 

 

To speed up the conveyancing process,

here are five things that should help.

 

To start, a good estate agent should value your property accurately, price it correctly, and market it effectively to attract the right buyers. They should also be able to manage the conveyancing process effectively, ensuring that everything runs smoothly and quickly.

 

The second is the greater adoption of technology to increase efficiency in the conveyancing process. This could include standardised online sellers' information packs, digital logbooks, automated Land Registry and local authority searches, and electronic platforms to share information between estate agents, conveyancing lawyers, mortgage brokers, surveyors, buyers and sellers. These innovations could speed up the buying and selling process, reduce the workload on conveyancers and allow for a smoother and faster completion of sales.

 

Thirdly, by choosing the right conveyancer/solicitor.

 

Tunbridge Wells homeowners can reduce the timescales for getting to exchange and completion.

 

Fourth, the government has started intervening (for good, for once). One massive issue is ensuring the relevant ‘material information’ prospective home buyers need to know about a property is available up front when the property is marketed. This information will undoubtedly speed up the sales process and reduce sales falling through.Trading Standards are implementing a 3-stage strategy for the disclosure of 'material information' on the property when it comes onto the market. Part A was implemented in 2022, and Parts B & C will follow soon.

 

Finally, as a homeowner, you can also do several things to speed up the transaction.

 

When buying a Tunbridge Wells property, there are several steps you can take to speed up the conveyancing process.

 

To start with, instruct your conveyancer/solicitor before making an offer on the property (if you need any advice on choosing a conveyancer/solicitor in drop me a line), so they can conduct anti-money laundering checks and be ready to start work. It's also essential to arrange your mortgage as soon as possible (again, we can help with that if need be), so you can complete your full mortgage application without delay and avoid potential hold-ups. 

 

Other steps to speed up the conveyancing process include instructing your conveyancer/solicitor to order your Local Search as soon as possible, paying for your survey promptly, and getting your home paperwork (such as planning etc.) in order. It's also a good idea to use the estate agent and ask for regular updates from your conveyancer and estate agent so you're fully informed about your sale's progress. Lastly, don't delay answering queries and nudging people along, as this can help speed up the conveyancing process.

 

Overall, taking these steps and being proactive can ensure a smoother and faster conveyancing process when buying a property.

 

To conclude, the Tunbridge Wells (and UK) housing market has seen a surge in transactions, placing more significant pressure on the system, resulting in longer timescales to sell a property. 

 

However, by adopting new technologies and choosing the right estate agent and conveyancer/solicitor, homeowners can reduce the time it takes to sell their property and get to completion. 

 

Please let me know your thoughts on this crucial property matter.

 

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.

What Landlords Need to Know about Void Periods

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Success as a landlord doesn’t just centre around what you do when your property is tenanted. How you manage your rental when it’s empty is also crucial.

All landlords have to contend with void periods – they’re an inevitable part of having a buy-to-let.

So, it’s wise to budget for the costs associated with void periods and take precautions to stop them dragging on.

That’s because when your property is empty, not only will you be missing out on rent, you’ll also have to cover the mortgage and utility bills (you’ll need to heat your property to some degree to prevent the pipes from freezing and condensation). And then there’s the thorny issue of council tax.

A few years ago, many local authorities gave landlords a one-month grace period on paying council tax on empty properties. But many cash-strapped councils have since scrapped this policy, while others only offer a partial discount.

Given that void periods can be costly, it’s imperative that landlords carefully manage them and keep them to a minimum. Here are tips on how to do both.

Managing void periods

- Set some cash aside to cover costs when your property is empty.

- Check the rules on council tax and vacant properties in your local area so you can budget.

- When your tenant serves notice, use this time wisely to carry out any improvement works.

- Include rent protection in your landlord insurance.

- Check your insurance cover; some policies become invalid if the property is empty for more than 30 days. If your property looks set to be vacant for a significant period, you may need to take out unoccupied property insurance.

How to prevent unnecessarily lengthy void periods

- Be aware that it might take longer to find good tenants if your property is vacant around the Christmas period, as it’s quiet and difficult to arrange viewings.

- Maintain your buy-to-let to a high standard all year round. Don’t put off maintenance or repair work.

- Be a responsive landlord. Happy tenants are likely to stay longer.

- If you’re time-poor, use a letting agent to manage the property and reduce tenant turnover.

Contact us to learn more about our property management services.

#rentalproperty #tunbridgewellslandlords #landlordtips #tunbridgewells

7 Top Tips for Buy-To-Let in Tunbridge Wells

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If you're considering investing in buy-to-let property in Tunbridge Wells, it's important to understand the area’s  property market and know what to look for in a potential investment. 

 

Here are some top tips to help you get started on your buy-to-let journey.

 

One. Research the Market

Before investing in buy-to-let property in Tunbridge Wells , it's crucial to research the property market. Look at the rental demand, average rental prices, and property prices in the area. You should also consider the location of the property and whether it is in a desirable area for renters. A lot of this information is published in my other property blog posts.

 

Two. Choose the Right Property

When choosing a property to invest in, think about the type of tenant you want to attract. For example, if you're targeting young professionals, look for properties that are close to transport links and local amenities. If you're targeting families, look for properties with multiple bedrooms, close to good schools, and a garden.

 

Three. Calculate Your Costs

When investing in buy-to-let property, it's important to calculate all your costs. This includes the purchase price, stamp duty, legal fees, and any renovation costs. You should also factor in ongoing costs such as mortgage payments, tax, insurance, and maintenance costs.

 

Four. Consider Your Financing Options

There are several financing options available for buy-to-let investors. You can use a traditional mortgage, a specialist buy-to-let mortgage, or even cash if you have the funds available. It's important to research each option and choose the one that best suits your financial situation.

 

Five. Choose a Good Letting Agent

A good letting agent can make all the difference when it comes to managing your buy-to-let investment. They can help you find tenants, manage the property, and deal with any issues that may arise. It's important to choose a reputable letting agent with experience in the local market.

 

Six. Stay on Top of Regulations

As a buy-to-let investor, you need to be aware of the 170+ laws and regulations that apply to your property. This includes the safety regulations for gas and electrical appliances, as well as the legal requirements for tenancy agreements and deposits. It's important to stay on top of these regulations to avoid any legal issues.

 

Seven. Expect the Unexpected

It's important to be prepared for the unexpected when investing in buy-to-let property. This could include unexpected repairs or difficult tenants. It's vital to have a contingency plan in place and to set aside some funds for unexpected expenses.

 

Investing in buy-to-let property can be a great way to generate passive income and build long-term wealth. However, it's important to research the local Tunbridge Wells market, choose the right property, and stay on top of regulations to ensure a successful investment.

 

If you would like the articles on the property market to be sent to you via email, do send me your email address, otherwise follow me on social media.

 

Cautious Optimism in the Royal Tunbridge Wells Property Market

As the British and Tunbridge Wells property market navigates the ongoing economic turmoil, many Tunbridge Wells homeowners and landlords may feel uncertain about the future.

However, up-to-date data suggests that the 2023 property crash predicted by the many newspapers and the usual clickbait doom-mongers in the lead-up to Christmas on social media, may not be as bad as initially thought, and there are reasons to be cautiously optimistic.

According to property website Rightmove, the average asking price of a home for sale in the UK rose by just £14 in February.

While this might sound like cause for concern, asking prices remaining flat rather than falling could be seen as a positive sign for the year ahead. Remember that they are only what people are asking (and not necessarily achieving).

So, what exactly is happening in the Tunbridge Wells property market?

Well, it all starts with realistic pricing.

Thankfully, most Tunbridge Wells sellers are heeding their estate agents' advice and being more realistic on price, helping maintain market stability.

If you are realistic with pricing, the property should sell.

The time it takes to get a property to sale agreed upon has increased nationally from 21 days in the summer of 2022 to around 50 days in Q1 2023.

Additionally, despite the turbulent economic conditions, buyer demand is rising. Rightmove also reported in the national press that the number of people contacting estate agents has increased by 11% in the last two weeks compared to the same period in 2019.

The number of sales agreed upon has also rebounded.

Nationally, from 1st January to the 19th February 2023,

134,886 properties had been sold subject to contract in the UK.

Not a good figure when I compare it with the same year-to-date sale agreed figures from the last couple of years.

2022 - 173,607 properties sold stc

2021 - 193,607 properties sold stc

But the last couple of years have been extraordinary for the UK property market and should be taken with a pinch of salt in some respect. We must compare 2023 with more normal years, like 2017/18/19/20. This tells a different story.

2020 - 151,694 properties sold stc

2019 - 143,504 properties sold stc

2018 - 138,665 properties sold stc

2017 - 134,503 properties sold stc

The picture looks similar when we look closer to home in Tunbridge Wells.

In Tunbridge Wells (TN1/2/3/4), in the first seven weeks up to the 19th February 2022, 289 properties sold subject to contract.

This year, from the exact 1st January to the 19th February timeline, 207 properties have sold stc, which is lower, yet in the same ballpark as 2017, 2018 and 2019

Yet it is all terrific selling a house (subject to contract); it is still only sold subject to contract, meaning the sale could fall through (as it is not legally binding).

As an agent who likes to delve deeper into statistics, I considered the 'net property sales'. (Net Property Sales being the gross number of properties sold that week less the sale fall throughs in the same week).

In the three months leading up to the Mini-Budget in September 2022, there was an average of 17,801 ‘net property sales’ per week in the UK. That dropped by 34.7% two months after the Autumn Mini-Budget to an average of 11,624 ‘net property sales’ per week in the UK.

In the last five weeks, that has rebounded to 17,050

‘net property sales’ per week.

And when you consider the average for the same five weeks in 2017/18/19 was 18,330 'net property sales' per week, we are close to what many considered a normal market.

Improving market conditions has been supported by a reduction in average mortgage rates. Homebuyers taking out a five-year fixed-rate mortgage with a 15% deposit can expect a rate of 4.39% (correct at the time of writing with HSBC), down from an average of 6.1% in early October. This reduction in mortgage rates may have contributed to the recent increase in buyer demand.

These positive signs in the market have led some experts to suggest that a ‘softer landing’ for the UK property market than initially expected could be on the horizon.

The combination of sellers being more realistic on price and an improving picture of the number of agreed-upon sales suggests a more positive outlook for the property market.

I advise Tunbridge Wells homeowners coming to market in the upcoming spring season to use their agent's expertise and get the price right the first time to find the right buyer more quickly. If you do wish to chance a higher asking price, only do so for no more than two weeks. If you haven't sold by then, take the agent's advice and realign your asking price.

169 Tunbridge Wells homeowners have realigned their

asking prices since 1st January 2023.

While it's true that some first-time buyers may still be priced out of their original plans and may need to look for a cheaper property, save a bigger deposit, or factor higher monthly mortgage repayments into their budgets, there is still cause for optimism.

There is still a considerable demand for buying property in Tunbridge Wells - renting is becoming increasingly unattractive for many people as rents are increasing by double digits percentages.

It is important to remember that purchasing a property always involves a trade-off between what one desires and what is affordable, regardless of the market conditions. For example, while a four-bed detached house may be out of reach, a larger and older three-bed semi-detached property may be a more realistic option (and probably have similar square footage).

Tunbridge Wells landlords looking to invest in buy-to-let homes – now may be a good time, as rising rents could offer attractive returns.

Of the 277 properties let in Tunbridge Wells since the 1st January 2023, the average rent achieved has been £1,422 per month. This is a significant drop in the number of properties let in the same first seven weeks of the years of 2017/18/19 and a massive increase in rents.

Finally, the newspapers will be full of news about house price drops in the coming months. All the indexes report house sales where the sale agreed price was offered nine to eleven months ago and completed (i.e., monies and keys handed over) three or four months ago. This peculiar time lag means the house price data is nearly a year old before publication.

So, if you decide to buy a home on that information, you are using old property data. In late 2021/early 2022, there were 30+ viewings per property, and people paid way over the asking price to secure a property. Now there is more 'normality' in the Tunbridge Wells housing market; today's prices are also more normal (at or slightly below the realistic asking price). So yes, the house price indexes will show a reduction in house prices. The newspapers will say house prices are crashing, yet when it is explained I have above ... whilst it is not a newspaper clickbait title - it is the truth and it’s more of a return to more 'normal house prices'.

So, prepare for clickbait newspaper headlines of a house price crash (because ‘bad news sells newspapers’ as the saying goes).

Also, prepare for the doom-mongers to quote the bad news of the earnings-to-house prices ratio at one of its highest levels ever.

Earnings-to-house price ratios are a poor measurement of health in the UK property market. Instead, I believe Nationwide's measure of first-time buyer mortgage payments as a percentage of take-home pay is better (as it is actual pound notes out of actual pay packets).

The Nationwide measure of first-time buyer mortgage payments as a percentage of take-home pay has grown for first-time buyers from 30.4% in Q4 2021 to 39.4% in Q4 2022 … a

massive rise! Yet mortgage interest rates have dropped since then (so that percentage will fall). Also, to give some context, let us not forget that percentage in 1989 was 48.4%.

Ultimately, Tunbridge Wells homeowners and landlords should decide, based on their unique circumstances, rather than being swayed by newspaper headlines or general market trends. Anyone uncertain about the property market's future should contact me for my opinion, advice and guidance.

50% of Royal Tunbridge Wells house sellers in 2022 had only been in their old home on average 5 years and 24 weeks

The share of Brits moving each year has been declining since the late 1980s (when at one stage, people moved every eight years), yet since the pandemic's beginning, something has appeared to upset that trend.

Newspaper stories and social media posts painted a picture of homeowners moving from the city centres to its suburbs, from the suburbs to the towns and countryside around the UK. Areas like the Cotswolds and coastal towns around the country got swamped by the race for space, significantly affecting housing markets (including Tunbridge Wells).

But how many Brits moved? And how long had they been in their homes before they moved?

In Great Britain, there are 28.3 million households, of which 19.3 million are owner-occupied and 4.43m owned by private buy-to-let landlords.

There is £7,035 trillion of residential property in private hands.

Eight years before the initial lockdown in 2020, an average of 79,646 properties were sold each month in the UK, meaning just under a million UK households move home annually.

Therefore, in those 8 years, the average British homeowner moved every 20 years and 4 months.

So, what uplift was there in people moving home after the first lockdown in 2020?

In 2021 and early 2022, an average of 102,021 people moved home monthly, taking the average move time to once every 16 years. So even though there was an uplift in people moving home, it was nothing like the 1980s.

It shows that in the 21 st Century, once you have succeeded in buying a property you can call home, there isn't much enthusiasm to move again.

What is happening in the Tunbridge Wells property market now?

We love our homes in Tunbridge Wells, but most of us (including myself) still want to better our lives with a larger house, better area etc., which typically requires us to climb up the Tunbridge Wells property ladder.

Yet, with Tunbridge Wells house prices having risen by 432.4% in the last 25 years, the cost of going up the next rung on the Tunbridge Wells property ladder has become prohibitive.

Everyone remembers back to the 1980s, when we had an upbeat booming property market as a backdrop, and British homeowners moved home every eight years; so now, with the average move time in the mid to late teens (in years), this equates to each homeowner only moving around three to four times in their adult lifetime.

Or could it be something else?

We all know the phrase, “lies, damn lies and statistics.

The home moving statistics above hide some great details about the British property market.

When British homeowners get into their 50s, 60s and beyond, their inclination to move home drops like the proverbial stone.

The average time a homeowner without a mortgage moves home is 24 years and 27 weeks (and just over 7 out of 10 outright homeowners, i.e. without a mortgage, are 65 or older).

Homeowners with a mortgage tend to be younger to middle-aged.

Homeowners with a mortgage move on average every 10 years and 11 weeks.

So, whilst I cannot determine which house seller has a mortgage and which doesn't, I can look at how quickly people move home in Tunbridge Wells.

Therefore, I have taken a look at the last 50 property sales in Tunbridge Wells and found some interesting results.

The average Tunbridge Wells homeowner had only been in
their home on average 13 years and 18 weeks before they sold.

Yet the devil is in the detail.

There appears to be a two-speed Tunbridge Wells property market …

50% of Tunbridge Wells house sellers in 2022 had
only been in their old home on average 5 years and 24 weeks.

Then, let's split the findings into quarters.

• Top 25% fastest Tunbridge Wells homeowners in 2022 moved on average after 3 years & 26 weeks
• The following 25% of fastest Tunbridge Wells homeowners in 2022 moved on average after 7 years & 16 weeks
• The next 25% of Tunbridge Wells homeowners in 2022 moved on average after 16 years & 0 weeks
• Whilst the 25% slowest Tunbridge Wells homeowners in 2022 moved on average after 26 years & 3 weeks

When looking at the properties that fall into the slower time bands (i.e., the ones that don’t move/sell so often), they tend to be the larger properties where the homeowners have lived often for 30 or 40 years.

Maybe, the one lesson from these statistics is that once homeowners get into their 60’s and 70’s, their tendency and inclination to move home declines significantly.

This means the homes on the lower rungs of the Tunbridge Wells property ladder are selling

quickly (as younger aged homeowners occupy them) ... yet once Tunbridge Wells people

tend to get older, their tendency to move diminishes.

This obstructs the younger generation of Tunbridge Wells homeowners from wanting to buy

the bigger Tunbridge Wells properties these mature Tunbridge Wells homeowners live in.

What is holding the older generation back from selling and downsizing to free up family

homes for families that desperately need them? Some will be apathy, and some will be

wanting to hold on to the homes they brought their families up in, yet the bottom line is …

as a country, we must reconsider how we can encourage (not force) older homeowners to sell their large homes to release them to the younger families that desperately need them.

Some recent articles I have written suggested tax breaks, yet the government doesn't have the money to give massive tax breaks.

One thing I do know we, as a country, have seen (and will continue to see) a lot of demographic change together with an increasingly ageing population, so it’s not just about how many households we build but whether we are constructing the right kind of homes for the older generation?

Thought-provoking times are ahead for the Tunbridge Wells property market!

If you have a Tunbridge Wells property to sell in the coming months or years and want to know how this and other factors will affect you and your property ... without obligation, don't hesitate to call me.

Royal Tunbridge Wells Property Market Update:February 2023

• With the Bank of England raising interest rates and inflation high, what is happening in the Tunbridge Wells property market
• Are properties selling in Tunbridge Wells? And if so, what is selling?
• What will happen to the value of your Tunbridge Wells home?
• Read the article to find out what is happening to the Tunbridge Wells property market.

Now that February is here, the Tunbridge Wells (and British) property market is full of mixed messages.

 

Whilst the Bank of England increased the base rate nine times in 2022, meaning they are now at 3.5% (3% higher than 12 months ago), mortgage rates are now dropping. 

 

The local property market rocketed over the last few years because of the imbalance of the number of properties for sale versus the demand, with many more people looking to move home than there were properties available. 

 

Now, as we are over the first month of 2023, we are experiencing a steadier housing market, where homebuyers have the time and opportunity to ensure they find the right home for them. 

 

The days of 50 viewers per property on the first weekend of marketing, frenzied buyers outbidding each other by increasing their offers by tens of thousands of pounds over the asking price has become the exception and not the norm.

 

I often get asked my thoughts on the Tunbridge Wells property market (hence these blog articles) and at this time of year, I get asked my forecast for the year ahead.

 

The one big thing I have noticed is the imbalance of what is coming on the market for sale versus what is selling.

 

For example, 38.2% of properties that came on the market nationally in November and December 2022 had an asking price of £250,000 or less, yet 45.6% of the properties sold subject to contract since 1^st January 2023 have been £250,000 or less. 

 

That doesn't sound like a lot, yet it makes a massive difference to the property market.  

 

However, it’s very easy to look at national averages, regional averages and, of course, local averages. Yet the property market is just one market nationally, as there isn't just one property market.

 

However, the same pattern is seen in the higher-priced properties. These higher-priced properties are selling more slowly than the lower-priced properties. Therefore, the need for those larger properties to be more realistic in price is paramount to stand out from the crowd, especially with the next point.

 

Evidence suggests there is a growth of buyers, who are looking to find a home before putting theirs onto the market. This was unthinkable last year, yet as the property market returns to normality, this will be seen more and more.

 

What are my thoughts?

 

Firstly, the time scale of how long it will take to sell a Tunbridge Wells home.

 

I expect to see the time it takes to sell a Tunbridge Wells home increase from 55 days in 2022 to a more 'normal' housing market of around 70 days.

Secondly, the imbalance of the property market. 

 

A greater number of larger homes are coming on the market because (as mentioned recently in a previous blog post) of the higher number of mature homeowners looking to downsize. This is because these larger homes have become much more expensive to heat, and as many of the occupants are on fixed incomes with their pensions, they are downsizing to cut costs.

 

Thirdly, that brings me to talk about energy efficiency. 

 

Many buyers have started to ask about a property's Energy Performance Certificate (EPC) rating. I recommend to homeowners considering moving in the spring or summer to have an EPC done on their property now, as there may be points that could easily be rectified and improved from one EPC rating band to another. 

 

This would mean you will get a lot more interest and a better price for your property. If you need any help or guidance in organising an EPC on your property (even if you are not selling for six/twelve months), do not hesitate to me give me a call.

 

So, what is happening in the property market in terms of new properties (aka new listings) and what is selling?

 

91 properties have sold (STC) in the Tunbridge Wells area since 1^st January 2023.

(Tunbridge Wells being TN1/2/3/4).

However, it's essential to look at what is selling, and the most active price range is the £400k to £500k range, where 18 properties have been sold subject to contract (representing 19.7% of sales).

Looking at what is coming onto the market in the same time frame … 

145 properties have come onto the market in the Tunbridge Wells area since 1^st January 2023.

Interestingly, the price range with the most listings is the £400k to £500k range. 

 

This means Tunbridge Wells is bucking the national trend (mentioned above) where nationally, the lower to middle property market is where the sales are, but the properties coming onto the market are slightly higher in price, yet it’s the same in Tunbridge Wells.

 

Any homeowners with properties in price ranges that aren’t selling so well need to be ‘on point’ to stand out from the crowd regarding their marketing, be spot on regarding their pricing (compared to the growing competition of other larger homes for sale) and now more than ever, their EPC rating (especially if they are on the cusp between two EPC bands).

 

Before I conclude, you might wonder why I have not mentioned house prices.

 

Well, what will happen to Tunbridge Wells house prices in 2023 is something I am not sure of.

 

(Yes, I know that level of frankness is strange coming from an estate/letting agent). 

 

I know the prices being achieved for homes in the spring of 2022 (when everyone was out bidding each other) are not being achieved today. It all depends how you look at it. 

 

Are local house prices dropping or are they just returning to normal? I would say the latter. 

 

However, looking at house prices as a ‘bellwether’ for the health of the property market has flaws.  

 

Many economists and property market commentators believe transaction numbers (the number of properties sold) give a more accurate and truthful indicator of the property market's health than just house values alone. 

 

The reason is three-fold. 

 

Firstly, most people also buy a home when they sell their own, so if property values drop by 10% or rise by 10% on the one you are selling, it will do the same on the one you are buying - meaning to judge the health of a property market on house prices is very one dimensional.  

 

Secondly, as most people move up market when they do move home, if the price of the one they’re selling might not be as much as they would've achieved in 2022 (if they drop), the price that they will pay on the one they want to buy will be lower. Thus, it will cost them less to move upmarket!

 

E.g. Last year, your Tunbridge Wells home was worth £400,000, and the one you wanted to buy would have been £750,000. Let’s say local house prices did drop 10% in 2023 (which I don’t know if they will); your home would be only worth £360,000. Yet the one you want to buy would now be worth £675,000. So last year, it would have cost £350k to move, but if house prices drop 10%, the move would cost £315k, saving you £35,000.

 

Third and finally, moving home is a human thing. Property habitually delivers a robust emotional connection with homeowners - a connection that few would attribute to their other investments like their stock market investments or building society savings passbook.  

 

Moving home could be described as a human journey, moving from one chapter of one’s life to another. 

 

Therefore, when people do move home, it shows they are moving forward in their lives, which gives a great indicator of the property market's health.

 

It’s going to be an interesting year for the 2023

Tunbridge Wells property market.

 

My opinion. Do what is suitable for you, your family and your finances. 

 

Ignore the newspapers and look at the facts in hand and if you want a frank chat about the Tunbridge Wells property market, irrespective of whether you want to sell or not, call me. I might not tell you what you want to hear, but I will tell you what you need to hear.