The Melksham housing market is relativity buoyant, thanks to an unexpected group of people – Melksham first-time buyers.
Many Melksham tenants are annoyed with competing for Melksham rental properties at high rents. Therefore, over the last 12 months, many renters have been stretching their finances to get on the Melksham housing ladder, despite sky-high mortgage rates.
Using data from the Office of National Statistics, Land Registry and the Bank of England …
With just under 1 in 3 house purchases made by first-time buyers in the last 12 months, it might surprise many that this has been steadily growing since 2010 when only 1 in 5 house purchases were made by first-time buyers.
Surprisingly, first-time buyers have remained the most resilient group of property buyers, even during these difficult times.
Usually, first-time buyers would be the most affected in times of stress in the property market (like in the last two property market crashes of 1998 and 2008). However, this time is different. Despite the sky high mortgage rates, the rental market and its high rents are making buying a more attractive option for many Melksham renters.
In Q1 2021, the average rent in the Melksham area was £799 per month.
(Melksham area being SN12).
There are multiple reasons why rents are rising.
One reason includes higher mortgage rates for landlords, passed on to tenants in increased rents.
Some Melksham landlords with high % mortgages are selling their buy-to-let portfolios because of the Section 24 taxation rule changes and leaving the market entirely. Another reason is fewer landlords are buying rental properties to let out, with only 1 in 8 house purchases being made by landlords.
Meanwhile, demand for Melksham rental properties is high.
With demand outpacing supply, some Melksham renters are forced to accept higher prices or offer more than the asking price to secure new tenancies.
This situation has made many Melksham renters move forward with their plans to buy a home for themselves, despite the increasing costs of home ownership.
But what about the deposit?
It appears the ‘Bank of Mum & Dad’ are helping first-time buyers with their deposits. The national average deposit paid by first-time buyers was just over £63,000 in January ’23, which was 23.4% of their purchase.
The lowest rate for a two-year fixed first-time mortgage with a 23% deposit is 4.13%, up from 2.86% a year ago.
So, how can Melksham first-time buyers reduce their monthly payments? They can do it by increasing the length of their mortgage. For example, increasing your mortgage term from 25 to 30 years will save you £45 per month in mortgage payments for every £100,000 borrowed.
But what about those buyers with a low deposit?
According to the Moneyfacts website, the number of available 95% mortgage deals has risen from the early 160s in early March to nearly 210 last week. This is the highest level since September 2022, showing that banks are not worried about a property price crash. Moreover, the Coventry and Nationwide Building Societies have reduced their mortgage rates on low deposit (90% to 95%) mortgages over the past few weeks. The average 2-year fixed 95% mortgage is 5.64%, and the best rate is 4.9%.
However, Skipton Building Society has even launched structured products for certain first-time buyers that will not need a 5% deposit if the buyer can prove their rental history (about time too if you ask me).
The government mortgage guarantee scheme was also extended into 2023, which partially insures the bank/building society on any defaults on their 95% mortgages. It has been recognised for keeping some of these low deposits available for first-time buyers.
With first-time buyers fuelling the market, interesting times lay ahead!
These are my thoughts, do share yours.
In my articles on the Corsham property market, I like to provide an insight into the real story of what is happening in our local (and national) property market and address the misconceptions that some of the media have been spreading.
Despite almost daily reports of a housing market crash since September 2022, the data shows that the UK (and Corsham) property market is gingerly doing OK.
So, let’s dive into the stats and start with the life blood of the housing market – new properties coming on to the market.
Interesting when compared to the 7-year average (2017 to 2023 inclusive) of 403,105 new properties on the market in Q1.
New properties coming onto the market are a critical bellwether of the property market.
If we had a situation like 2008, where the number of properties coming on the market in 2008/9 was double that of 2007, supply outstripped demand and hence economics dictated and house prices fell.
So how do you know if we are heading for another Corsham house price crash as we did in 2008 or not as the case maybe?
Let me share a quick and easy way to find out before anyone else.
Firstly, do a Rightmove search on your chosen property market and map the number of properties for sale every week. Next, do the same search, but this time include sold subject to contract properties. This will show you can see how many properties are available and how many sold subject to contract (stc). The third step is to calculate the ratio between the first two numbers: i.e. what’s available versus what’s been sold.
If the ratio of sold property to available property rises monthly, the market is improving. If the ratio is falling, the market is slowing.
If you really wish to go deep into this; you could split the search into property type (and bedrooms) you are selling and buying e.g. detached, semi, terrace or flats. This will help you to judge demand and supply and time the market to your advantage.
However, the devil is in the data. The 276,482 properties sold stc is not very good when compared to the 7-year Q1 average (2017 to 2023 inclusive) of 306,532.
Yet that average includes Q1 2021, where 397,402 properties had sold stc and Q1 2022 when 341,888 properties sold. Both of those years were exceptional; however, when we compare Q1 2023 to the Q1 average of 2017/18/19/20, a more reasonable 282,488 houses were sold on average.
Next, I wish to look at what is selling nationally by price band.
Looking locally at the Q1 stats, starting with the number of properties in the Corsham area (SN13) that came onto the market in Q1 2023
The average price of those Corsham properties coming to the market was £444,741.
The price range/band that saw the most listings was the £400k to £500k range, where 25 Corsham area properties came to market.
Now, looking at sales in Corsham.
The average price of those Corsham properties selling was £438,665.
The price range/band that saw the most sales was the £400k to £500k range, where 19 Corsham area properties were sold.
Although economic turbulence remains, the property market is gradually moving towards pre-pandemic activity levels.
The national sales agreed in this lower price band are unexpectedly recovering the fastest. However, larger, more expensive home sales are lagging (e.g. 8.5% of listings in the UK in Q1 ’23 were in the £750k to £2m price band, yet only 6.4% of the sales were in the same band).
The £2m+ price range, even though the numbers are quite small, the difference is quite startling (1.2% of listings were £2m+, but only 0.6% of sales agreed were in the same range).
The average mortgage rates fell back from their peak last year, with the best rate for a 10% deposit five-year fixed mortgage now 4.6%, compared to last October at 6.62%.
However, this isn’t as good as the 10% deposit 5-year mortgage at 1.64% in January 2022.
So, what does this all mean for homeowners wanting to sell in this market?
Realistic pricing when you put your house on the market is everything!
It is better to come on the market at a realistic price to start when the property is fresh to the market, than go on at a high price, lose that initial honeymoon period and then reduce it, only for some people to wonder what was wrong with the property.
The Corsham property market is seeing stability and confidence return as it recovers from the turbulence at the end of 2022. The pace of the market had reached an unsustainable level in the last two years, and it was on track to slow to a more normal level.
The reaction to September’s mini-Budget accelerated the speed of this slowdown.
Although higher mortgage rates and economic headwinds present challenges, many potential home buyers who were effectively sidelined in the fierce bidding wars of the last two years will find that a slower paced property market gives them time to plan a strategy for their next move as we go into the traditionally busy post-Easter house buying season.
Determining a realistic price is crucial but not easy. Many sellers look at similar properties on property portals, but those prices may be over-inflated.
Estate agents have more tools at their disposal, such as comparing sale prices for comparable properties and thinking about prospective purchasers in the market for the type of property under valuation.
Although getting the price right can be difficult, revising it downwards quickly is essential.
Sellers should ensure that their property looks better value for money than similar properties. If you plan to trade up, it is good sense to sell at realistic prices, as you will gain substantial savings compared to moving in the last few years.
However, if you don’t need to sell urgently, becoming a landlord could be an option – again I can help on that if needs be. Nevertheless, homeowners-turned-landlords should consider that if property values do drift downwards in the coming 12/18 months, it may take a few more years after that to recover to those values seen last year.
If you would like an informal chat about your potential move without any obligation or cost, get me around for a chat. I promise I will tell you like it is, without any guff – then you can decide what is best for you and your family.
As an experienced Corsham estate agent, I have seen many Corsham 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 in Corsham 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.
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.
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 Corsham stats first, then discuss what can be done.
Interestingly, it only took an average of 43 days from putting the Corsham 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.
(Corsham is SN13).
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 start, a good Corsham estate agent should value your property accurately, price it correctly, and market it effectively to attract the right Corsham 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 Corsham conveyancer/solicitor.
Fourth, the government has started intervening (for good, for once). One massive issue is ensuring the relevant ‘material information’ prospective Corsham 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 Corsham homeowner, you can also do several things to speed up the transaction.
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 Corsham, 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.
To conclude, the Corsham (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 Corsham estate agent and conveyancer/solicitor, Corsham 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.
As a Corsham and Melksham estate agent, I know that obtaining a mortgage can be a daunting process, especially if you have a bad credit history.
However, I’m here to tell you that securing a mortgage is not impossible, even if your credit score is less than perfect.
Bad credit mortgages are becoming increasingly available, as lenders recognise that not everyone has a perfect credit rating.
This means that even if you have had financial difficulties in the past, there may still be options available to you.
One option is to seek the help of a specialist mortgage broker, who can advise you on the best lenders and products for your individual circumstances. They may also be able to help you to improve your credit rating, by offering guidance on how to pay off debts, for example.
Another option is to consider a guarantor mortgage, where a family member or friend agrees to guarantee your mortgage payments. This can help to reassure lenders that you are a reliable borrower, even if your credit history is less than perfect.
It’s worth noting that bad credit mortgages may come with higher interest rates and fees, as lenders consider you to be a higher-risk borrower. However, if you can make your payments on time and demonstrate that you are a responsible borrower, you may be able to re-mortgage in the future at a more competitive rate.
If you are struggling to obtain a mortgage due to bad credit, it’s important to seek advice from a reputable source.
Don’t be disheartened by your credit history – with the right guidance, you may still be able to achieve your dream of homeownership in Corsham or Melksham and surrounding areas.
At Jaine Whitfield Bespoke Estate Agents, we understand that everyone’s situation is different, and we’re here to help you navigate the complex world of mortgages. Get in touch with us today to find out more about how we can help you overcome bad credit and secure your dream home in Corsham or Melksham.
PS The law says I must put this disclaimer on any post when I talk about mortgages. I do apologise – yet the law is the law!
Your property may be repossessed if you do not keep up repayments on your Mortgage. The content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors our agency works with to confirm the most accurate up to date information. This is of course not tailored advice to each individual reader, and as such does not constitute financial advice. All the advisors working with us are fully qualified to provide mortgage advice and are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Phew!
With mortgage rates tripling over the last 12 months, one could be forgiven for thinking buying a Melksham home as a first-time buyer would out of the question.
Yet, what if I told you, it is £124 a year cheaper to buy a Melksham home as a first-time buyer than renting, would you be surprised?
The monthly homeownership cost of such a Melksham home (including the mortgage payments, property maintenance, and insurance bills) comes to £839.67 per month compared to £850 per month for the same Melksham house for rent.
Because Melksham rents have risen like a rocket ship in the last two years, this has helped to tip the balance in favour of homeowners.
This is based on the average first-time buyer mortgage with a deposit of 23% (that being the average last year for a first-time buyer nationally) and industry recognised amounts on property maintenance, and insurance bills.
Yet I thought 23% seems quite high, so I thought what it would cost with a smaller deposit of 10%.
Before I answer that, I believe the ‘buy versus rent argument’ is more than a simple pound notes question. Let me expand.
Firstly, renting allows for short-term living arrangements, with tenancies often lasting just six months. This provides flexibility for those who want to try out a new location or property. Additionally, renters are not responsible for maintenance costs, including broken boilers, and may have the option to rent a furnished property. There are also lower upfront costs, as renters do not need to pay legal fees, maintenance costs, stamp duty or a mortgage.
Melksham tenants face large upfront costs, including a deposit and first month’s rent – and landlords may increase rent. Renters also lack control over maintenance and may have to move if the landlord decides to sell the property.
Additionally, they may have to battle landlords to receive their full deposit back.
On the other hand, owning a Melksham home provides long-term security and the ability to decorate and control maintenance. Even though mortgage interest rates have more than tripled in the last 18 months, mortgages are currently still comparatively low compared to the long-term average. Let’s not forget …
However, saving for a deposit can be difficult and homeowners are subject to the housing market and price fluctuations. They must also pay mortgage and legal fees and must foot the bill for repairs.
Let’s be frank, both renting and buying a Melksham home have advantages and disadvantages.
It is important for individuals to carefully consider their financial situation and personal preferences before deciding.
So, let me look at Melksham first-time buyers who have a 10% deposit.
Yet when that annual figure is broken down into a monthly figure, surely paying £128.32 a month, with all the advantages mentioned above, is still worth it to buy your own Melksham home?
To conclude, whether it’s worth buying a home or renting a home in Melksham depends on your personal circumstances and priorities.
While owning a home can offer security and stability, it’s important to consider factors such as your future, financial situation and long-term goals.
Before deciding, take the time to ask yourself the right questions and weigh up the pros and cons carefully. By doing so, you can ensure that you make a choice that is best for you and your family’s future.
These are my thoughts, what are your thoughts people of Melksham?
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 Corsham has, together with how we live in and use our homes.
This data could be of interest to all Corsham people. However, it should be fascinating to Corsham 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 Corsham.
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.
Knowing the population of a town is essential for a variety of reasons. First and foremost, it helps us understand the demographic makeup of Corsham. 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 Corsham 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 Corsham 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 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.
Again, I will delve into this in more detail in my articles on the Corsham property market in the coming months.
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.
The remainder is made up of shared accommodation etc.
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.
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.
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.
Understanding households’ tenure is essential in understanding the local property market’s 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)
So, what is all this telling us?
The seven metrics discussed in this article on Corsham provide valuable insights into the town’s demographics and the future of Corsham’s property market’s demand and supply.
As a Corsham 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 Corsham 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 Corsham.
Traditionally, the first four months of the year are usually an estate agents’ busiest time for house sales. However, if the last three years have taught us anything, nothing is ‘normal’ and ‘usual’ anymore.
The Melksham property market is finding that with the friction of higher mortgage rates and the effects of inflation on household budgets; things are slightly different in 2023 compared to recent years.
So, when asked, ‘What’s happening now in the Melksham property market?’ there is a more complex answer.
The property market is fundamentally a balance of supply and demand.
In 2021/22, demand (people wanting and able to buy) was bigger than the supply of properties available to buy. Hence Melksham house prices rose. Let us see what is happening now in Melksham in 2023.
Looking at February’s sales numbers alone …
(Melksham being SN12).
Meanwhile, the number of properties coming onto the market (listed) in Melksham has also changed.
Therefore, in February 2023, 1.75 homes came onto the market (listed) in Melksham for every home sold (stc), compared to 0.96 homes per property sold (stc) in February 2022.
Interesting when compared with the national statistics. In February 2023, 1.48 homes came onto the market in the UK for every home sold (stc), compared to 1.11 homes per property sold in February 2022.
Well, we need to go back to last year first.
Roll the clock back to autumn 2022. Interest rates had been on the rise throughout the summer. These increased interest rates were starting to have a subtle dampening effect on the UK property market.
In the first six months of 2022, an average of 27,590 UK properties were sold per week. Two months before the Autumn Budget, that had eased to an average of 24,229 UK properties selling per week. Three months after the Autumn 2022 Budget, it slumped to an average of 16,821 UK sales per week.
The effects of Liz Truss’s Budget in September 2022 have waned. That budget triggered turmoil in the mortgage market as lenders withdrew funding and mortgage rates spiked. The availability (and pricing) of mortgages has improved lately, and mortgage rates have stabilised, albeit at higher rates, piling pressure on household budgets.
The housing market is driven in part by sentiment and confidence. Both took a beating in the autumn of last year, yet things appear to be easing in that department. In a nutshell, people are still determining how the Melksham property market will go in 2023.
As you can see from the sales and homes coming on the market (listings) statistics at the start of this article, the demand for Melksham homes is still at a decent level (very similar to pre-Covid levels seen in 2016 to 2019), whilst listings have increased (meaning a greater choice of Melksham homes to buy).
So, this then comes to the issue of Melksham house prices.
There, I have said it. Of course, Melksham house prices are falling. The house prices paid in the ‘silly season’ in late 2021/early 2022 are not paid today in March 2023. In 2021, it was a ‘bun fight’; the Melksham property market was ‘on fire’, and people were outbidding each other to secure property. Now those times are over, so the prices being paid are much more reasonable.
Melksham house prices will continue to drift slowly and steadily downwards throughout 2023 as the effects of interest rates and affordability clip the wings of many buyers. This is good news because if Melksham homebuyers (and sellers) don’t believe there will be large house price falls happening, it will make more people come onto the Melksham property market in the spring and summer to buy and sell property.
As I have said in recent articles on the Melksham property market, the lower priced/smaller sized properties sell more than the middle priced/middle sized properties. This is because the smaller properties are more attractive as higher mortgage rates put a dampener on home buyers’ household budgets.
Also, the cost-of-living crush is making more mature homeowners downsize their mid-sized homes that are costly to heat. Interestingly, in a few locations around the UK, the upper quintile (top 20%) in terms of house prices are immune to all this downturn in demand. Very strange!
The house price data that many journalists use to judge house prices are between six and nine months old. If a property has a sale agreed upon in, say, March, it will complete (completion is when the legal work is done, monies transferred, and keys handed over) in August or September and show on the Land Registry figures by November or December at the earliest (i.e. eight or nine months later).
Yet now, through Denton House Research, we have access to data on house prices that are a matter of a week old.
The listings are £/sq. ft shows what homeowners are putting their homes on the market at and the sales £/sq. ft what homes are selling for. By tracking data on the average price per square foot for both listings and sales agreed, we can track exactly what is happening to house prices in real-time. The data is currently at the regional level (more local data to follow soon), yet it shows what is happening today to house prices.
So, what does this all mean?
Also, the lowest point regarding house prices in all regions of the UK was January 2023, and the figures you see in these stats have a slight upturn in them in February 2023.
In the coming weeks, I will delve deeper into the statistics. We have to be aware of the gap between listing £/sq. ft and sale £/sq. ft. If this gap gets too big, sellers are getting too optimistic about pricing.
They will suffer as their home languishes on the market, become stale, and experience shows they will have to reduce their property to an asking price under what they would have achieved if they had priced it realistically from day one.
Yes, the February 2023 uplift in house prices will be a blip. Unless something seismic happens, Melksham house prices will still be around 10% (+/- a few percentage points) lower at the end of 2023 than in the late summer of 2022.
This is a correction from the inflated prices paid in late 2021/mid 2022.
What about those people that have bought in the last 12 months?
The peak of the Melksham property market was the late summer of 2022, yet no one who bought their Melksham home in the late summer is currently considering selling. So, they won’t be affected in any way by this short-term house price correction (remembering the middle to long-term data shows house prices always bounce back).
Yet, that can only be said for some houses because it depends on your market. If there’s huge demand and there are six viewers or six people wanting to offer the type of home you want, house prices will hold up.
But if you are the only person who has viewed it in the last three months, that’s a different story. It would be best to ask questions like how long the property has been on the market and how many offers there have been.
For those Melksham homeowners who aren’t selling, remember if your Melksham home drops in value by 10%, it’s still worth 90% of what you thought it was worth. You only lose money if you sell.
Also, are you losing money? It’s money you never had, and the one you want to buy has come down in price even more than yours. Remember, 8 in 10 people move up the market when they move, so a 10% drop is a larger drop on the more expensive home than yours, meaning it’s cheaper to move.
The statistics and sentiment now show there is a lot of hope out there, and there is still quite a lot of appetite for people to buy. I would never say never, but the chances of a house price crash are minimal.
As the British and Corsham property market navigates the ongoing economic turmoil, many Corsham 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.
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 (not necessarily achieving).
So, what exactly is happening in the Corsham property market?
Well, it all starts with realistic pricing.
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.
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 Corsham.
This year, from the exact 1st January to the 19th February timeline, 40 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.
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.
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 Corsham 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.
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 Corsham – 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).
Of the 32 properties let in Corsham since the 1st January 2023, the average rent achieved has been £1,205 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 Corsham 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 the way 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’.
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, Corsham homeowners and Corsham 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.
Melksham homeowners – do you know how big your Melksham home is?
What is the square footage of your Melksham home?
Don’t worry, most of us don’t – yet it could be fundamental as Melksham home buyers search for new homes.
As an agent, I find homebuyers usually assess the size of their intended house purchase chiefly by the number of bedrooms the property offers. However, could we all make more effort to calculate how much actual space we require in the home outside the number of bedrooms?
Let me see how the properties locally are split down regarding bedrooms.
The split of bedrooms in Wiltshire is as follows:
As one would expect for our location in the UK, we have a higher number of larger 3 and 4-bedroom homes in our locality.
Unless you are buying a Melksham property to develop and then sell on straightaway, I believe it is imperative to enjoy your property for what it was designed to be – your home.
Though room for growth and resale ability potential of the house purchase is vital, the manner of the way you and your family live and how you use your home must be the primary consideration for improving your quality of life. And because of this …
The first is asking for a property’s energy efficiency rating. This can be seen on the property’s Energy Performance Certificate (EPC). That was expected, with the rise in gas and electric bills.
Yet the second is that more and more Melksham tenants and buyers are asking about the size of the property, which can be found in the EPC mentioned above.
Talk in the property industry suggests a move towards home movers wanting homes with minimum square footage instead of a property with a particular number of bedrooms.
Should we all consider how we use our space in our Melksham homes before we decide to move? Before we do, let me look at the average sizes of the properties locally.
These are the averages for the Wiltshire area:
• The average size of a house is 1,087 sq. ft. compared to the national average of 1,103 sq. ft.
• The average size of a bungalow is 915 sq. ft. compared to the national average of 862 sq. ft.
• The average size of a flat/apartment is 452 sq. ft. compared to the national average of 464 sq. ft.
• The average size of a maisonette is 603 sq. ft. compared to the national average of 657 sq. ft.
• The overall average is 1,033 sq. ft. compared to the national average of 994 sq. ft.
Again, as I would expect due to our location, the average home is larger than the national average.
In the last few years, with lockdowns, as a nation, we have started to use our homes differently.
Rooms in our homes have become interchangeable – having more bedrooms isn’t automatically the status symbol it once probably was.
Spare bedrooms have become offices, dining rooms have become gyms, and so on.
Are you willing to sacrifice living room space for an extra bedroom, even if it makes the living room feel cramped and uncomfortable?
Before selecting a home based solely on the number of bedrooms it offers, there are several factors to consider.
Determine if you utilise all the rooms to the best of the space available, if you have enough storage, and if the layout works for you. If you value space and openness, prioritise square footage instead of bedrooms.
Consider your current life stage and living space needs. If you have a family, bedrooms may be a priority, but assessing how many are needed is essential. It would help if you also considered whether you need a separate space for work or a top-of-the-range ensuite.
However, it is essential to consider the type of Melksham tenant you want to attract and what type of space would be most marketable.
Instead of moving to a new Melksham home, renovating your current space might be a better option?
By reconfiguring the space or extending it, you could improve your quality of life or increase the value of your Melksham property. A home makeover could give you the open space or environment you desire?
By answering these questions, you can determine whether the number of bedrooms, other rooms, or square footage is the most crucial factor when selecting a new home.
What do you think?
Before I go, if you are a Melksham homeowner or property buyer and you want to pick my brains on your best options, please don’t hesitate to pick up the phone or drop me a line and we can start a discussion without any obligation or cost.
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 Corsham).
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.
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.
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 21st Century, once you have succeeded in buying a property you can call home, there isn’t much enthusiasm to move again.
We love our homes in Corsham, but most of you (including myself) still want to ‘better our lives’ with a larger house, better area etc., which typically requires us to climb up the Corsham property ladder.
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?
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.
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 Corsham.
Therefore, I have taken a look at the last 50 property sales in Corsham and found some interesting results.
Yet the devil is in the detail.
There appears to be a two-speed Corsham property market …
Then, let’s split the findings into quarters.
• Top 25% fastest Corsham homeowners in 2022 moved on average after 3 years & 34 weeks
• The following 25% of fastest Corsham homeowners in 2022 moved on average after 8 years & 20 weeks
• The next 25% of Corsham homeowners in 2022 moved on average after 19 years & 13 weeks
• Whilst the 25% slowest Corsham homeowners in 2022 moved on average after 26 years & 19 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 Corsham property ladder are selling quickly (as younger aged homeowners occupy them) … yet once Corsham people tend to get older, their tendency to move diminishes.
This obstructs the younger generation of Corsham homeowners from wanting to buy the bigger Corsham properties these mature Corsham 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 …
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 Corsham property market!
If you have a Corsham 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.
