Robust Rutland Property Market Shines Bright Amidst Gloomy National Headlines
Mon 16 Oct 2023
Pelham James is an estate agent in Rutland with a difference. We understand that unique and luxurious homes need better marketing, while their owners deserve a refined level of customer service. As part of our personal approach, we share regular property market insights, allowing you to make an informed decision about moving home.
If you’d like to discuss anything about property, please get in touch with the team or pop your head around the door at 3 Saddler’s Court in Oakham. We’d be delighted to stick the kettle on and hear your story.
Pessimistic national property headlines are off-putting, but we take a closer look at Rutland…
The consensus among economists and the wider public is clear: the remarkable ascent of Rutland's property prices over the previous twelve years has reached its peak and is now starting to drift downwards.
Major national publications splash headlines filled with pessimism about the UK housing market, citing issues such as buyer affordability caused by challenges with average salary growth not keeping up with inflation, higher interest rates also hitting buyer affordability, and the hangover of the pandemic making recruiting people hard work.
However, these gloomy projections don't seem to resonate with the fact that Rutland's property market activity in the past year closely mirrors that of 2017/18/19.
This divergence might hint at the age-old notion: 'bad news sells newspapers'.
To provide a clearer picture, let's delve deeper into Rutland's property market nuances, focusing on the demographics of movers and their motivations.
Most of the property sales in Rutland (LE15) during the last year were detached properties, selling for an average price of £576,240. Terraced properties sold for an average of £283,100, with semi-detached properties fetching £315,880.
A closer look at Rutland's homeowner sector in the last 12 months of housing data reveals the following...
If you’d like to discuss anything about property, please get in touch with the team or pop your head around the door at 3 Saddler’s Court in Oakham. We’d be delighted to stick the kettle on and hear your story.
Pessimistic national property headlines are off-putting, but we take a closer look at Rutland…
The consensus among economists and the wider public is clear: the remarkable ascent of Rutland's property prices over the previous twelve years has reached its peak and is now starting to drift downwards.
Major national publications splash headlines filled with pessimism about the UK housing market, citing issues such as buyer affordability caused by challenges with average salary growth not keeping up with inflation, higher interest rates also hitting buyer affordability, and the hangover of the pandemic making recruiting people hard work.
However, these gloomy projections don't seem to resonate with the fact that Rutland's property market activity in the past year closely mirrors that of 2017/18/19.
This divergence might hint at the age-old notion: 'bad news sells newspapers'.
To provide a clearer picture, let's delve deeper into Rutland's property market nuances, focusing on the demographics of movers and their motivations.
Most of the property sales in Rutland (LE15) during the last year were detached properties, selling for an average price of £576,240. Terraced properties sold for an average of £283,100, with semi-detached properties fetching £315,880.
A closer look at Rutland's homeowner sector in the last 12 months of housing data reveals the following...
- 348 Rutland households moved within the same ownership sector, implying they sold their home to purchase another.
- 82 Rutland households ended and exited home ownership (i.e., moved in with family, moved to a care home or sadly passed away)
- 88 Rutland households shifted from owning to private renting.
- 4 Rutland households moved from home ownership to social housing (i.e., Council Housing or Housing Association).
- 185 Rutland households shifted from private renting to homeownership.
- 188 new Rutland homeowner households emerged, transitioning from residing with family or friends to buying their first property without experiencing the private rental sector.
Despite the relentless doom and gloom portrayed in the media about the property market, it's heartening to witness a robust influx of Rutland first-time buyers securing their own homes.
Remarkably, 188 of these newcomers have moved from family or friends into homeownership, showcasing the enduring spirit of people wanting to buy their home. Additionally, 185 households have transitioned from the private rented sector, demonstrating a genuine aspiration among tenants to achieve homeownership.
This trend underscores the resilience and adaptability of aspiring homeowners amidst challenging times.
What does this data spell out for Rutland's buy-to-let landlords?
Whilst the number of British landlords, according to capital gains tax receipts, selling up has increased by around 45% in the last year compared to pre-pandemic levels, the number of landlords buying buy-to-let is 19% down.
A golden opportunity for Rutland's property investors lies in the 82 properties that went up for sale last year due to owners passing.
Often, these homes, maintained over several decades by older owners, feature high-capital improvements like double-glazing or central heating. However, they might lack contemporary aesthetics, having outdated decor or out-of-style fixtures from the 1980s.
Such properties often come at lower prices because many buyers overlook their potential due to dated appearances. A smart investment in renovations could lead to handsome profits on resale.
Rutland’s property market remains robust
It's imperative to put things in perspective. Regardless of global events - whether it's post Brexit, post Pandemic, potential political shifts in the US or China, interest rates or stock market dynamics - Rutland's property market remains robust in the mid to long-term framework.
Even as we witness minor value corrections in the upcoming 12 to 18 months, history has shown that property prices bounce back, often with greater momentum.
This underscores the timeless advice to those venturing into the property market, be it first-time buyers, landlords, or homeowners: property is a marathon, not a sprint.
Commitment to the long haul invariably yields rewards, a philosophy that can be applied universally don’t you think?
If you would like to discuss this in any more detail, or any other matters relating to the property market in Rutland, feel free to get in touch with our team at Pelham James.
David Crooke
