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The rental market has seen significant changes and law introductions over the past year with the two big changes being the introduction of the tenant fee ban and deposits being capped to a maximum of five weeks rent. With Scotland having had these laws for the past few years and the outcome so far being of increased rental prices, we were also finding both concerned landlords and tenants. Tenants concerned due to the potential of higher rental prices and landlords concerned that deposits and other fees not covering potential losses. Having now had 6 months or so getting accustom to the changes, we thought it was a good time to review what (if any) impact on the Ipswich rental market there has been.
So the average rental price in Ipswich was £650 per calendar month in 2018. Over 2019 this has risen to £659pcm. This takes into account every property type and room rental prices. So overall this is a small increase of 2% which is very much inline with market predictions, good news for tenants that there is no knee jerk reaction from landlords or agencies in regards to prices. It will however be interesting to see how this continues over the course of the year as more rental properties become available and are re-let.
It’s also interesting to see that when you take the room rental prices out of the equation that the average Ipswich rental price is £707pcm. The national average is £773pcm so Ipswich is well under in respect of this, however a large reason for this can be contributed to areas such as London, Cambridge and Bristol where exorbitant rental prices are paid.
In short, no visible reaction to the fee ban or deposit cap have been noticed in Ipswich property as yet. We will continue to review this and update Ipswich landlords and tenants as more data comes through. We also hold lots of rental data for specific properties by type, number of bedrooms and areas, so if you are an Ipswich landlord or tenant with more specific questions then please do feel free to contact us.
It’s a much discussed topic within the Ipswich property industry – what’s the most expensive road in Ipswich to live on? Well here’s our 2020 update.
|1) Purdis Farm Lane||£834,471 (-£20,952)|
|2) Beechwood Drive||£799,118 (+£13,695)|
|3) Purdis Avenue||£786,347 (+£35,674)|
|4) The Avenue||£753,881 (+£130,816)|
|5) Graham Road||£724,607 (+£76,698)|
|6) Kingsfield Avenue||£682,854 (+£75,457)|
|7) Paget Road||£671,857 (+£75,693)|
|8) Elton Park||£657,754 (+£51,165)|
|9) Broughton Road||£645,033 (+£76,304)|
|10) North Close||£620,485 (+£52,587)|
The 2020 Results:
Again for 2020, the top 3 properties in Ipswich all lie off the popular Bucklesham Road with Purdis Farm Lane, Beechwood Drive and Purdis Avenue all unchanged in the top 3. Interestingly, Purdis Farm Lane is the only street on the list to see a decrease in average value. This can largely be attributed to only one house selling in 2019 at £760,000 (still not to be sniffed at) which is significantly lower than the 2019 average of £855,423.
Streets in a Christchurch park location feature heavily again and have seen the biggest increases. The Avenue and Paget Road both move up a place with The Avenue boasting the biggest increase with a 21% jump. The streets within a quarter mile of the park saw on average an increase of 15.1%.
2019 was an unpredictable market that was short in confidence in certain areas. What this did mean however is that the popularity and desire for these established Ipswich roads meant an increase in sold prices and demand which explains the average increase being significantly higher than the national average.
Overview & Comment
Purdis Farm Lane contains substantial sized properties which all used to be part of the original farm, offer picturesque views whilst still being easy accessible to the town centre. Being in a desirable east of Ipswich location with excellent A12/14 access, the properties are some of the most sought after in the town.
Unsurprisingly over half of the properties on the list are within a quarter of a mile from Christchurch Park. These roads contain pretty period houses with generous plots with the vast majority being 4 bedrooms plus. With easy access to the town centre, popular local pubs & shops and Ipswich school, the area has long been a desirable part of Ipswich. All of the top 10 rank particular low for crime rates for Ipswich also.
Interestingly some of the street names that instantly pop into mind don’t feature. Anglesea Road, Rushmere Road & Gainsborough Road all fail to make the list. The main reason for this is the variety of property on those streets – i.e. smaller flats/apartments which have a lower value than the larger detached properties on those streets and therefore bring the overall average value down.
The east side of Ipswich has a higher average value in comparison to the West as well. The top 10 in the West side of town is over £100,000 less in comparison to its east side peers. The reason for this? School catchments is the general consensus here. Copleston and in particular Northgate High school are the most popular in the town due to their consistently high ofsted ratings. With both of those schools also having very popular feeder schools, the knock on effect is of families wishing to move into the area to try and secure places. As families grow the need for larger housing is naturally there however people don’t wish to upset schooling by moving out of area, therefore looking to buy bigger in the area, hence the higher values in the east. The east of Ipswich also has some of the larger employers easily accessible, Ipswich Hospital, BT at Martlesham and the Port of Felixstowe all within a 20 minute drive.
Is this likely to change in the future? Evidence would suggest not as over the course of the past 50 years the most expensive streets have seen very little change. The only real change was when the Albany development (again within ¼ of Christchurch Park) was built with Berkley Close and Carlton Way (£518,781 & £514,249 respectively) charging into the top 20 and in the top 10 within the IP4 postcode. It would seem more likely that new developments in existing popular areas are more likely to enter the top 10 opposed to a more general shift. Indeed, it will be interesting to see how the “Northern Fringe” impacts the desirability, will there more be more expensive roads in the area or will the additional 5,000 plus houses put buyers off and we do finally see a shift? Time will tell.
To find out where you’re street ranks then please feel free to contact us.
With a turbulent year in terms of the property market and consumer confidence in general, we’ve had a lot of Ipswich landlords ask us our views on the current market state and future predictions of the Ipswich housing market. With Brexit, a general election and news reports fluctuating with different views on the state of the housing market, it’s very difficult to cut through and see how the market is doing locally. Landlords in particular are becoming less secure about whether or not now is a good time to invest.
We thought it would be a good idea to review how Ipswich is performing in regards to buy to let which will help you make a more informed decision. To do this we’re looking at house prices and rental growth specifically. In other words looking at the basic yield over a medium to long term period. Firstly looking rental growth, it makes for very good reading;
|Area||Rental Growth 2019|
The south east as always features very high on the annual rental growth list. Performing exceptionally well again, and in good news for landlords and would be investors, is Ipswich with growth close to 4.5% and second in the whole country. This is not only a fantastic sign in terms of continued growth on your investment, it’s only improving your yield every year. In a bank account you’re stuck at the same rate for however long your tied into or review.
The next step is to look at the average house price over the course of the year;
So despite market ups and downs national and local, where the market has fluctuated by 4.7% in terms of positive and negative growth, the Ipswich housing market has ultimately risen yet again for the 8th consecutive year. Again, yet another sign of market confidence locally but also improving your buy to let yield further still.
The average buy to let yield in Ipswich stands at 4.2% currently. Compare this to the best savings account available on the market today (2.35% on a 2 year fix) and your investment could be performing 2% better per year on average. Based on the current average Ipswich house price that’s £4,000 extra (or £8,000 over the savings investment term) you could be potentially earning. So with increasing buyer confidence, strong rental demand and all the stats over a turbulent market showing strong growth, perhaps 2020 is your year to invest further into the Ipswich market? For guidance on investment, latest legislation and different types of investment opportunities please do feel free to get in touch.
In the office the other day one of our colleagues remarked that they were dealing with a lot more first time buyers than usual. This got us thinking in the office whether this was true across the Ipswich property market in general.
Well looking at the stats, first of all we can see the number of properties bought since the summer by Ipswich first time buyers;
So from August there has been a steady increase in first time buyers across Ipswich the property market with 37 more purchases recorded in October that August. That’s an increase of 25.5% in that time period.
The average purchase price for an Ipswich first time buyer has actually decreased slightly over the course of the year;
Whilst holding a fairly consistent average price, it has dipped slightly from the start of year which reflects the overall minor decrease from the start of the year in the market in general.
We think the biggest factors for the increase and popularity of the first time buyer market in Ipswich is a combination of fantastic mortgage rates, our mortgage broker in the office reporting a rate of below 2% (21.11.19) and relatively low average house prices in comparison to other local areas. Mortgage rates have been consistently low now for 10 years, with more banks and building society’s fighting for everyone’s business and attracting customers with fantastically low rates – which is actually pretty consistent across the board. The average first time house price is also comparatively low, for example the average first time house purchase in Bury St. Edmunds is £225,716 and Colchester is £227,438. With the investment and improvement in amenities and services in Ipswich combined with the average Ipswich property price, and super mortgage rates we believe is the reason that Ipswich is becoming more and more an attractive proposition for first time buyers.
With more first time buyers in the area this can only be a good thing, first time buyers are the lifeblood of any property market, whether you’re looking to move up the ladder, downsize, or a landlord exiting the marketing of freeing up an investment, without first time buyers the property market is a much flatter place. What are your thoughts?
With the demographic change in Ipswich over the past 30 years, combined with the house price surges over the past 10 years, property in Ipswich is getting pricier with a record average house price of over £230,000.
So with the average house price standing just shy of a quarter of a million pounds, we thought we would show what you could buy if you came into a bit, a lot or a euro millions worth more of money. Here is what £1million of Ipswich property could afford you;
Purdis Farm Lane, £800,000 – Burnt Oak is a fine interwar detached residence situated on one of Ipswich’s most expensive streets. The property has thoughtful additions intertwined with traditional 1920’s feature and modern finished. A triple garage and outstanding conservatory are particular highlights.
Fonnereau Road, £695,000 – Park House has a big clue in it’s name, a fine Victorian residence that overlooks Christchurch park. Full of popular Victorian features and in a prime Ipswich town centre location, this house is full of wow.
Neptune Marina, £495,000 – One of the original developments on the regenerated Ipswich waterfront, this penthouse is perhaps the pick of all of the apartments on the marina. A duplex apartment with panoramic views, two balconies and it’s own private terrace, the ultimate in waterfront living.
This is without the doubt the most popular question we get asked on a daily basis.
If your selling in Ipswich, there maybe a few reasons why it’s taking sometime to sell your home. It maybe taking longer than you thought to find a buyer because of a tougher market or taking longer to find the perfect Ipswich property because there are less properties available.
With taking all of these factors into consideration then, how long is the average Ipswich property selling time.
If you are looking to sell your Ipswich property, it may have become infuriating when your home has been on the market for longer than you anticipated. Perhaps the property market is purely in a position where it’s challenging to get a property sold quickly, or sold at the price you want to achieve for it. If you do live in an Ipswich home that is towards the upper reaches of the price band, you have to be open to the idea that because it’s worth so much more than the average property in Ipswich and so more than most individuals can afford, you will have to wait longer to get it sold.
Quite simply put though, your Ipswich home might be taking longer to sell because your asking price is too high. Even if you’re prepared to take a realistic offer, if you have an unrealistic asking price your overpriced Ipswich property will then be unquestionably turning off potential buyers from even booking a viewing on your Ipswich home.
Now looking at the market compared to year ago makes for an interesting comparison;
|House Type||October 2018||October 2019||Percentage Change|
|Detached||101 Days||132 Days||+31%|
|Semi||84 Days||94 Days||+12%|
|Terraced||75 Days||101 Days||+35%|
|Flat||190 Days||211 Days||+11%|
|All||118 Days||140 Days||+19%|
Across the board there is an increase in the length of time properties are taking to sell, perhaps reflecting current market uncertainty? It does seem however that the ever popular Ipswich semi detached properties are holding their own with terraced properties actually taking significantly longer to shift. This we suspect is down to the increase of choice with many Ipswich families wanting to upsize to a semi as we have alluded to in previous articles.
So the average time to sell a house in Ipswich is 140 days. Here at Beagle property our average is just 56 days in comparison. If you’re property is taking longer than these averages to sell then you really should be asking questions.
Buyers will compare Ipswich properties on all the web portals, Rightmove, Zoopla, OnTheMarket etc., they will compare asking prices and see if yours is realistic, they will see how well your property is presented in comparison and if yours isn’t pitch perfect this will speak volumes with the results.
Another key piece of information to remember is that a buyer only views 4.5 properties before they buy and on average only spend 25 minutes on a viewing. The more choice there is, the more yours need to stand out.
When it comes to buying and selling it’s an expensive process and rarely taken lightly. Make sure your home reflects that you’re a committed seller and attracts the right buyer…promptly.
We often get asked in the office about which street is the most popular in Ipswich, Or which street is the busiest in the market. We’ve taken the time to compile the top 10 streets for most transactions in Ipswich. Your definitive guide from July 2018 – June 2019 of which streets had the most home movers in Ipswich.
It’s unsurprising to see the list dominated by arterial streets within Ipswich. These roads have a larger number volume of dwellings on them so it’s only natural that there is a higher number of these home owners moving. There are a couple of surprising inclusions and exclusions on the list however.
Cavendish street in terms of length, house numbers and it’s handy location for east Ipswich and waterfront maybe a bit of an eyebrow raiser. However the property types are on the street are smaller terraced houses, typically your first time/starter houses, so it’s natural that people do move on from here quicker in order to progress along the housing market. There is also some volume of buy to let property on the street so there will be some natural movement with people wanting to realise their investments. Meridian Rise (on the former BT site off Woodbridge Road) may also be a surprise to some however for a shorter street it has a mix of apartments, 2,3,4 and 5 bedroom properties . So combining property types with volume, it’s not too a big surprise to see the street featured, despite it being a much less established road than it’s counterparts on the list.
There a couple of surprise absences on the list, Norwich Road and Bramford Road, in fact nothing in IP1 at all. These roads in fact tend to have less transactions on them typically. Is it because of better positions? Build Quality? Value for money? Well whilst we’re not 100% sure, we do know that in the postcode there are a lot of more substantial properties (think Warrington Road, Ivry Street and Henley Road for example) and also a lot of buy to let properties. This combination of properties in a smaller market at the high end and the buy to let properties not being available, will naturally make for fewer transactions.
Next years report will also be interesting as we haven’t yet factored in the Ribbans Park development on Foxhall Road (or indeed any other new build properties). If we did then Ribbans Park would have won comfortably with 63! It’ll be interesting if these residents settle or will be quick movers.
So good news if you live on one of these streets – you know it’s sellable! What are your thought’s on the list? Feel free to give us a call or pop into the office for a chat.
Recently the government announced plans to abolish section 21 notices or “no fault evictions”. This is where a landlord can ask to reclaim their property with two month’s notice. There’s been much uproar amongst many Ipswich landlords that we have spoken with. For many law abiding landlords there are several concerns.
The first concern is that a section 8 notice would be required instead. A section 8 means that you have to apply to the court before you can take possession. The waiting period for Ipswich county court is “between three and eight weeks depending on volume”, which means a much lengthier process and potentially prolonging a problem tenants stay. Section 8 notices also require a lot more in depth information such as police or reports if there is anti-social behaviour. With new GDPR rules the police and council can’t share certain information – an instant catch 22. As court appearances are common as well, witness neighbours can feel intimidated and decline to appear. All this meaning a judge potential siding with the tenant.
Add this to the cost of serving a section 8 notice. David Smith of the Residential Landlords Association (RLA) has said a landlord would need to spend up to £5,000 to evict a problem tenant by taking them to court. This is money that could otherwise have been spent upgrading their properties for the benefit of their tenants, he added.
Mr Smith said the change would force reputable property owners to reduce their investment in the sector or sell up and could see the return of rogue landlords.
“There’s a real risk that, by getting rid of section 21, we return to the old days when some of the properties were really bad and some landlords were really unpleasant people,” he warned.
So why do the government want to abolish the notice? Georgie Laming of Generation Rent said she believed the changes would lead to a fairer relationship between tenant and landlord.
“The abolition of section 21 will definitely start to even out the playing field for tenants and landlords,” she said. “It will protect tenants from revenge evictions and mean that there are more long-term tenancies where the landlord and the tenant get on well.”
Ms Laming argued that, once the threat of a no-fault eviction was removed, tenants would be comfortable remaining in the rental sector for longer.
The government are purposing a new housing court that will deal with disputes. This proposal both the RLA and Generation Rent agree could cause further needless red tape and increased costs for both landlord and tenants. Both parties also agree that there is current legislation that can be enforced by the relevant local bodies to protect landlords and tenants.
As agents, we can’t stress enough how important it is to match good quality landlords with good quality tenants and that anything other than this should be addressed. What we do feel when speaking with Ipswich landlords that this proposed change, along with the recent cuts to mortgage and stamp duty relief, mean that we’re seeing decreasing numbers of new landlords and increasing numbers of landlords selling. What are your thoughts on the current and proposed legislation and how it will affect your properties? Please feel free to drop us a line for a chat.
It was reported this week in a popular estate agents trade magazine that the average homeowner moves every 20.2 years, this up from 10.5 years in the mid 80’s. During the 90’s this increased to around 14-16 years and remained at a constant. When the credit crunch hit this shot up to over 25 years, people either unable to move due to negative equity or not having enough confidence within their market place to do so. Since 2010 the average has steadily fallen and last year even reached a low of 18.7 years.
The graph is a very indicator of the economy and as you can see after the credit crunch it looks like homeowners were taking advantage of greater demand and smaller supply to make the move to their next home. The real question to look at next as why is the average length of time still a lot more than the low’s of the 80’s. Is it the need for more of a deposit? Need for higher equity? Or is it just less desire to move homes. Well looking at the numbers, particularly in Ipswich since the 80’s, general numbers have steadily increased so the appetite is very much there. Looking at the number of years you stay in your home determines how much you will pay back on the mortgage you took out when buying it. If you stay longer, you have the prospect to pay back a larger portion of the money you borrowed to buy the home. Interestingly, if you consider someone with a 25-year mortgage on the UK average variable rate of 3.4% for existing mortgage borrowers, borrowed say £200,000 at the start of the mortgage and made monthly payments on that mortgage, it would take 15 years and 1 month to build up over 50% (or £100k) in equity (and 17 years 2 months if interest rates were at their historic average in the 1980s and 1990s of 7%) … all assuming there was no decrease in value of the property.
I think there are a couple of other things to really consider. The traditional opinion of “trading up” which was a big focus 30 years ago has slowed somewhat. People not wanting a larger mortgage, more expensive cost of living and the opportunity to go mortgage free all plays a part in this. There’s also generation rent to consider. The combination of either not being to get onto the housing market but also the change in social attitude with the flexibility and freedom of renting being more accepted. With a lot more buy to let properties than 30 years ago, you have to also factor in how long some landlords hold onto a property. Ipswich (and Uk) landlords in particular don’t tend to trade up and stick with the sound investments that they’ve made.
We then decided to look at Ipswich v the UK in terms of property transactions since 1995, specifically the percentage of overall stock that had been sold.
As you can see, Ipswich residents move 1% more than the national average. 82.2% of Ipswich’s private housing stock has been sold compared to 79% nationally. Why have Ipswich residents moved more frequently on average? Well, feel free to chat us with your theories!