Starting with the bigger picture, over the last 12 months in the UK, 1,061,557 properties were sold with a total value of £223.74 bn. To give that some context, ten years ago 1,581,727 properties sold with a total value of £405.56bn, so the number of people moving house has dropped by over a third over the last decade.
Whether you are a landlord, homeowner or tenant, it’s interesting to keep an eye on the Evesham property market. Over the last 12 months, 713 properties have sold (and completed) in Evesham, worth £173.6m. Interestingly the number of properties changing hands in Evesham has also dropped when compared to a decade ago.
It might surprise you that first time buyers in 2017 will likely benefit from a slight decline in Evesham buy-to-let investors.
Those looking to buy a home in the spring and summer of 2017 will face a far less competitive Evesham property market than the same time last year, when the urgency to beat the buy-to-let stamp duty hike was in full swing.
Many landlords brought forward their purchases to beat the tax, and since then, the number of buy-to-let purchases has dropped slightly. First time buyers have taken advantage of that and have increased their buying. In fact, looking at the Bank of England figures available, this is what UK lenders have lent on buy-to-let properties versus first time buyers in recent months…
Q4 2015 – £1bn buy-to-let mortgages vs £1.31bn for first time buyers
Q1 2016 – £1.35bn buy-to-let mortgages vs £1.08bn for first time buyers
Q2 2016 – £760m buy-to-let mortgages vs £1.28bn for first time buyers
Q3 2016 – £827m buy-to-let mortgages vs £1.42bn for first time buyers
When looking at the figures for Evesham itself, first time buyers have borrowed more than £34.2m in the last 12 months to buy their first home. This is a ringing endorsement of their confidence in their jobs and the local Evesham economy. Those 20 and 30 something’s who are considering becoming first time buyers in 2017 will benefit from a greater choice of properties and less competition from buy-to-let landlords, compared to 2016.
Rightmove announced nationally that new seller enquiries are 26% up on the same time last year, giving the stoutest indication that we may see a slight ease in the lack of properties on the market. When we look at the Evesham market, at this moment in time, there are 253 properties for sale (so lots of choice). This will be welcome news amongst Evesham first-time buyers.
2017 could be an interesting year for all homeowners, be they buy-to-let landlords, existing homeowners or future homeowners. For more of my thoughts on the Evesham property market, you might want to visit the Evesham & Pershore Property Blog at Evesham & Pershore Property Blog