Over the summer, the foundations of the Bournemouth property market have continued to be essentially sound, but the current political climate means that all-important element of consumer confidence has been reduced.
That in turn is triggering some potential Bournemouth property buyers and sellers to falter slightly and hang fire on making any firm decisions on property.
Interest rates are still low at 0.75%, unemployment is low at 3.8% and mortgage availability is decent (even for those with low deposits – there were 224 mortgage deals available on the day of writing this article where only a 5% deposit was required and five main stream lenders that would offer 100% no deposit mortgages). So Bournemouth buyers have a lot going in their favour, aside from the perceived political uncertainty.
House Price Index for Bournemouth
Rightmove recently reported there are more properties for sale currently in the country than at any time since 2016, and Bournemouth follows that trend. But even with that in mind, property values have remained reasonably stable. The Land Registry has just released its House Price Index for Bournemouth and the surrounding locality and it makes very interesting reading.
Overall, property values in the Bournemouth area are 2% higher than a year ago – the average property value in Bournemouth now stands at £308,600.
When we look at the types of Bournemouth properties, it’s interesting to note that semi-detached homes have seen this biggest increase, whilst flats have only a small increase in value:
- Bournemouth detached homes rose by 2.9%
- Bournemouth semi-detached homes rose by 3.6%
- Bournemouth terraced/townhouses rose by 2.8%
- Bournemouth flats/apartments rose by 1%
And splitting down the types of Bournemouth into property types, average prices are as follows:
- Bournemouth detached – £422,000
- Bournemouth semi-detached – £283,100
- Bournemouth terraced/townhouses – £265,200
- Bournemouth flats/apartments – £222,300
Property transactions for Bournemouth
However, when considering the health of the Bournemouth property market, it’s always sensible to look at transaction levels as well:
2,624 properties were sold in the last year in Bournemouth, lower than the 10-year average of 3,184 properties per annum
Considering the uncertainty the country has been through in the last three years with the ‘B’ word issue, that isn’t too bad and shows the underlying resilience of the Bournemouth property market.
So looking ahead towards the end of the year – how will Bournemouth house values change under the new prime minister?
Bournemouth buy-to-let landlords and Bournemouth first-time buyers seem to be sustaining their activity levels, which is heartening news. It’s quite conceivable that both cohorts are currently profiting from the marginally increased numbers of Bournemouth homes on the market, which not only offers them greater choice, but aids with their negotiations.
The stamp duty changes that Boris has discussed, which include increasing the stamp duty threshold, are interesting. But if we look at previous stamp duty changes in the last decade, their effects have been rather short term.
That means those selling their homes in Bournemouth need to be realistic with their pricing, and, as most sellers also buy a property, what you might lose on your sale you will make up on the purchase.
BoJo, Brexit… to be honest are all short-term distractions from the long-term issues of the UK and Bournemouth property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply, meaning that irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events, prices will always in the medium to long term remain stable and increase.