25.5% Increase in the number of Ipswich first time buyers since the summer

 

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?

What does £1 million get you in Ipswich?

 

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.

How long does it take to sell a property in Ipswich?

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.

 

Which Ipswich street moves the most?

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.

What does abolishing section 21 “no fault evictions” mean for Ipswich landlords?

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.

Average homeowner moves every 20.2 years. How does Ipswich fair?

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!

39% of Ipswich Properties are tenanted with buy to let levels falling.

 

There was an interesting news story this week stating that the number of British people who own a second home, buy-to-let or overseas property has doubled since 2001. The story then went onto say that while the number of millennials who own a home continues to fall, one in 10 people now own an additional property. Just 37% of people born in the 1980s managed to buy a home at the age of 29, compared with half of those born in the 1960s. Wealth from owning a second home has risen since 2001 to almost £1 trillion.

We then looked at the Ipswich housing market make up;

The figures show that in Ipswich of all privately owned housing, 1 in 3 is a buy to let house, higher than the national average but not surprising given the wealth of the county in comparison to the rest of county versus average price.

Buy-to-let property is now the most common form of property wealth, having grown by 58% since 2006-08, the report also found.

However, when looking at the number of people who can afford an additional property, millennials and indeed Ipswich millennials match the property ownership rates of other generations.

This suggests that only younger people who are rich can afford a second home – a sign, according to the foundation, that property wealth is not distributed fairly across the country.

What is really interesting about this storey was that The Resolution Foundation wants to see policymakers step in to reform the housing market, in particular buy-to-let, in order to rebalance the housing market back towards first-time buyers.

“The sheer scale of additional property wealth is an important driver of rising wealth gaps across Britain,” says George Bangham, policy analyst at the Resolution Foundation.

“While young people in particular are less likely to own their own home than previous generations, those that do own are more likely to have more than one property.

“And as the huge stock of second homes, buy-to-let and overseas properties starts to be passed on to younger generations, Britain risks becoming a country where getting ahead in life depends as much on what you inherit, as what you earn.”

Chris Norris, director of policy and practice at the National Landlords Association, defended second home owners.

“There is a distinct difference between those who have a second home for personal use, leaving it empty for long periods of time, and those who have invested in a rental property which provides a valued home for someone else,” he said.

“Far from the stereotype of the wealthy property baron, most private landlords invest in residential property to provide for their future and their family’s in the form of supplementing a pension or establishing a business.”

Meanwhile, the government said it was helping first-time buyers get on the housing ladder.

“The Government is determined to ensure that a new generation can realise the dream of homeownership,” a spokesman said.

“Last year saw the highest number of first-time buyers in more than a decade. Since 2015, we have helped more than 300,000 people to purchase a home through schemes such as Help to Buy.”

As you can see from the amount of private and social tenants in Ipswich (39%) that second home ownership, particularly buy to let, is very much needed in Ipswich to fulfil the ever growing population and demand. With the oversubscribing to popular schools and the growth of the university combined with the lack of major new housing on the horizon means we are facing a serious shortage in Ipswich. If you’re a prospective buy to let landlord looking for areas to invest in then please feel free to contact us.