Posts

Showing posts from October, 2018

‘Taxing’ Time for the 3,054 Royal Tunbridge Wells Buy To Let Landlords

Image
Over the last twenty years, there has been a shift in the way the Royal Tunbridge Wells (and the UK’s) property market works. In the 1960’s, 70’s, 80’s and 90’s, a large majority of twenty somethings saved up their 5% deposit, went without life’s luxuries of going out and holidays etc., for a couple of years and then bought their first home with their hard earned savings.  By 2000, 47% of Royal Tunbridge Wells 25 to 29 years owned their own home (compared to 46% Nationally (and 65.7% of Royal Tunbridge Wells 30 to 34 year olds in 2000 owned their own home – again compared to 64.2% nationally) whilst the remaining youngsters mostly rented from the Council and in some rare cases, privately rented.  Now it’s 2018, and those levels of homeownership have slipped dramatically and now only 25.1% of Royal Tunbridge Wells 25 to 29 year olds own their own home and 44.2% of Royal Tunbridge Wells 30 to 34 year olds own their own home (interestingly mirroring the National picture of 24.5% for the y

New Home Building in Royal Tunbridge Wells over the last 10 years

Image
Should you, as a landlord for buy to let or for personal occupation, buy a brand-new home? Well, let’s start by looking at the numbers … Over the last 10 years, 1,044 new homes have been built in the Tunbridge Wells area That is a lot of bricks and mortar! Roll the clock back twenty years in the Royal Tunbridge Wells property market, and there were two distinct camps of property buyers - folks who would only contemplate living in period character properties with their original fireplaces and beams, and those people who preferred the low maintenance of a new home. Old period homes were ridiculed as money pits by new-home aficionados, while new-home owners were accused of buying boring boxes, all vanilla, all the same, homogenous and bland. However, it’s not as black and white as that anymore – or not as I see it in Royal Tunbridge Wells. New homebuilders are now trying to change their cookie-cutter uniform rows of suburban boxes into developments that are as individual as the families t

What Will Happen to Royal Tunbridge Wells Property Values if Interest Rates Rise?

Image
The current average value of a property in Royal Tunbridge Wells currently stands at £498,550 and the base rates at 0.5%. In many of my articles, I talk about what is happening to property values over the short term (i.e. the last 12 months or the last 5 years), but to answer this question we need to go back over 40 years, to 1975.   The average value of a Royal Tunbridge Wells property in 1975 was £24,135 However, since 1975, we have experienced in the UK, inflation of 807.5%. Back in 1975, the average salary was £2,291 and average car was £1,840. A loaf of bread was 16p, milk was 28p a pint and a 2lb bag of sugar was 30p. Inflation has increased prices, so comparing like for like, we need to change these prices into today’s money. In real spending power terms, an average value of a Royal Tunbridge Wells house in 1975, expressed in terms of today’s prices is  £219,059.  That means in real terms, property costs a lot more today, than in the mid 1970’s, but has it always been that way?