658,208 People use Baldock Train Station a year……

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How does that affect the Baldock Property Market?

 

It might surprise you that it isn’t always the poshest villages around Baldock or the swankiest Baldock streets where properties sell and let the quickest. Quite often, it’s the ones that have the best transport links. I mean, there is a reason why one of the most popular property programmes on television is called Location, Location, Location!

As an agent in Baldock, I am frequently confronted with queries about the Baldock property market and most days, chiefly from newcomers, I am asked “What is the best part of Baldock and its villages to live in these days?”.  Now the answer is different for each person. A lot depends on the demographics of their family, their age, schooling requirements and interests etc. Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport of which the railways are very important.

Official figures recently released state that, in total, 902 people jump on a train each and every day from Baldock Train station. Of those, 336 are season ticket holders. That’s a lot of money being spent when a season ticket, standard class, to London is £5,432 a year.

If up to £1.82m is being spent on rail season tickets each year from Baldock, those commuters must have some impressive jobs and incomes to allow them to afford that season ticket in the first place. That means demand for middle to upper market properties remains strong in Baldock and the surrounding area and so, in turn, these are the type of people who are happy to invest in the Baldock buy to let market, providing homes for the tenants of Baldock.

The bottom line is that property values in Baldock would be much lower, by at least 3% to 4%, if it wasn’t for the proximity of the railway station and the people it serves in the town

This isn’t a flash in the pan. Rail is becoming increasingly important as the costs associated with car travel continue to rise and roads are becoming more and more congested. This has resulted in a huge surge in rail travel.

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Overall usage of the station at Baldock has increased over the last 20 years. In 1997, a total of 229,353 people went through the barriers or connected with another train at the station in that 12-month period. However, in 2016, that figure had risen to 658,208 people using the station (that’s 1,803 people a day).

The juxtaposition of the property and the train station has an important effect on the value and saleability of a Baldock property. It is also significant for tenants – so if you are a Baldock buy to let investor looking for a property – the distance to and from the railway station can be extremely significant.

One of the first things house buyers and tenants do when surfing the web for somewhere to live is find out the proximity of a property to the train station. That is why Rightmove displays the distance to the railway station alongside each and every property on their website.

For more thoughts on the Baldock Property market and for any advice please pop into the office or give us a call on 01462 894565.

What will the General Election do to 5,604 Baldock Homeowners?

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In Baldock, of the 5,604 households, 1,792 homes are owned without a mortgage and 2,034 homes are owned by a mortgage. Many homeowners have made contact me with asking what the General Election will do the Baldock property market?  The best way to tell the future is to look at the past.

I have looked over the last five general elections and analysed in detail what happened to the property market on the lead up to and after each general election. Some very interesting information has come to light.

Of the last five general elections (1997, 2001, 2005, 2010 and 2015), the two elections that weren’t certain were the last two (2010 with the collation and 2015 with unexpected Tory majority). Therefore, I wanted to compare what happened in 1997, 2001 and 2005 when Tony Blair was guaranteed to be elected/re-elected versus the last knife edge uncertain votes of 2010 and 2015,  in terms of the number of houses sold and the prices achieved.

Look at the first graph below comparing the number of properties sold and the dates of the general elections:

168 Graph One

It is clear, looking at the number of monthly transactions (the blue line), there is a certain rhythm or seasonality to the housing market. That rhythm/seasonality has never changed since 1995 (seasonality meaning the periodic fluctuations that occur regularly based on a season – i.e. you can see how the number of properties sold dips around Christmas, rises in Spring and Summer and drops again at the end of the year).

To remove that seasonality, I have introduced the red line. The red line is a 12 month ‘moving average’ trend line which enables us to look at the ‘de-seasonalised’ housing transaction numbers, whilst the yellow arrows denote the times of the general elections. It is clear to see that after the 1997, 2001 and 2005 elections, there was significant uplift in number of households sold, whilst in 2010 and 2015, there was slight drop in house transactions (i.e. number of properties sold).

I then wanted to consider what happened to property prices. In the graph below, I have used that same 12-month average, housing transactions numbers (in red) and yellow arrows for the dates of the general elections but this time compared that to what happened to property values (pink line):

168 Graph Two

It is quite clear none of the general elections had any effect on the property values.  Also, the timescales between the calling of the election and the date itself also means that any property buyer’s indecisiveness and indecision before the election will have less of an impact on the market.

Finally, what does this mean for the landlords of the 767 private rented properties in Baldock? Well, as I have discussed in previous articles (and just as relevant for homeowners as well) property value growth in Baldock will be more subdued in the coming few years for reasons other than the general election. The growth of rents has taken a slight hit in the last few months as there has been a slight over supply of rental property in Baldock, making it imperative that Baldock landlords are realistic with their market rents.  However, in the long term, as the younger generation still choose to rent rather than buy the prospects, even with the changes in taxation, mean investing in buy-to-let still looks a good bet.  If you want to find out more about the Baldock property market or for any advice, please either pop into the office, call us on 01462 894565 or e-mail: lettings@satchells.co.uk.

How The Rented Sector Has Transformed The Property Market In Baldock

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The Baldock housing market has gone through a sea change in the past decades with the Buy-to-Let (B-T-L) sector evolving as a key trend, for both Baldock tenants and Baldock landlords.

The government recently released a white paper on housing which I have read and wish to offer my thoughts on the topic.  It was interesting that the private rental sector played a major part in the future plans for housing. This is especially important for our growing Baldock population.

In 1981, the population of North Hertfordshire stood at

108,600 and today it stands at 131,700

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Currently, the private rented (B-T-L) sector accounts for 13.2% of households in the town.  The Government want to assist people living in the houses and help the economy by encouraging the provision of quality homes, in a housing sector that has grown due to worldwide economic forces, pushing home ownership out of the reach of more and more people. Interestingly, when we look at the 1981 figures for home ownership, a different story is told.

53.01% Baldock people owned their own home in 1981

38.08% Baldock people rented from the Council or Housing Association in 1981

 and 8.91% Baldock rented from a Private Landlord       

The significance of a suitable housing policy is vital to ensure suitable economic activity and create a vibrant place people want to live in. With the population of North Hertfordshire set to grow to 161,000 by 2037 it is imperative that North Hertfordshire District Council and central government all work actively together to ensure the residential property market does not hold the area back, by encouraging the building and provision of quality homes for its inhabitants.

One idea the government has proclaimed is a variety of measures aimed at encouraging the Build-to-Rent (B-T-R) sector (instead of the B-T-L sector). These include allowing local authorities to proactively plan for B-T-R schemes, and making it simpler for B-T-R developers to offer inexpensive private rented homes.

To do this, the government will invent a distinct affordable housing class for B-T-R, called ‘Affordable Private Rent’, which will oblige new homes builders to provide at least 1 in 5 of a new home developments at a 20% discount on open-market rents and three year tenancies for tenants. In return, the new home builders will get better planning assurances.

Private landlords will not be expected to offer discounts, nor offer 3-year tenancies but it is something Baldock landlords need to be aware of as there will be greater competition for tenants.

Over the last ten years, home ownership has not been a primary goal for young adults as the world has changed. These youngsters expect ‘on demand’ services from click and collect, Amazon, dating apps and TV with the likes of Netflix. Many Baldock youngsters see that renting more than meets their accommodation needs, as it combines the freedom from a lifetime of property maintenance and financial obligations, making it an attractive lifestyle option.

Private rented housing in Baldock and North Hertfordshire, be it B-T-L or B-T-R, has the prospective to play a very positive role.

 

Baldock property of the week…..

Take a look at our latest property of the week video – Country Properties are selling a two bedroom apartment with Juliet balcony in prime high street development for £199,950.  With a potential rental yield of around 5% this is one we feel landlords should look at.   Click here for Country Properties advert and call them quick – this won’t hang around long!

58 Properties For Sale in Baldock … is this a good time to sell?

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2017 has started with some positive interest in the Baldock property market.  Taking a snap shot of the Baldock property market for the first quarter of 2017, the picture suggests some interesting trends when it comes to the number of properties available to buy, their asking prices and what prices properties are actually selling for.

Let us first consider the number of properties for sale, compared to 12 months ago:

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So when we add in building plots and other types of properties that don’t fit into the four main categories, that means there are 58 properties for sale today compared with 45 a year ago, a rise of 29%.

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Baldock asking prices, compared to a year ago, are 7% higher.

With that in mind, I wanted to look at what property was actually selling for in Baldock. Taking my information from the Land Registry, the last available six months property transactions for SG7 show an interesting picture (note the Land Registry data is always a few months behind due to the nature of the house buying process and so November 2016 is latest set of data). The price shown is the average price paid and the number in brackets is the number of properties actually sold.

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So what does all this mean for the property owning folk of Baldock?

Well, with more property on the market than a year ago and asking prices 7% higher, those trying to sell their property need to be mindful that buyers, be they first timers, buy to let landlords or people moving up the Baldock property ladder, have much more price information about the Baldock property market at their fingertips than ever before.

Those Baldock people who are looking to sell their property in 2017, need to be aware of the risks of over pricing their property when initially placing it on the market. Over the last 12 months, I have noticed the approach of a few Baldock estate agents is to suggest an inflated asking price to encourage the homeowner and secure the property to sell on their books. The down side to this is that when offered to the market for the first time, buyers will realise it is overpriced and wont waste their time asking for a brochure. They won’t even view the property, let alone make an offer. So when the price is reduced a few months later, the property has become market stale and continues to be ignored.

Whilst the Baldock property-market has an unassailable demand for property – there is one saying that always rings true – as long as the property is being marketed at the right price it will sell.

If you want to know if your Baldock property is being marketed at the right price, send me a web link and I will give you my honest opinion.

Ideal investment opportunity in Baldock

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A one bedroom cluster home just added to the market in last 24hours by Country Properties in Baldock.  This property is in a great location and looking at the internal shots has been re-furbished and modernised to a good standard.  With a rental income of around £8,400 p.a. and an asking price of £190,000 this is definitely worth looking at – contact Country Properties ASAP!

This property in Baldock has great investment potential!

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Country Properties in Baldock are asking for £169,950 for this one bedroom maisonette.  This is a great option as it has been re-furbished and offers modern contemporary accommodation for any tenant to just move their furniture in. With a rental yield of around 4.2%, and while interest rates are so low this is a property you need to talk to Country Properties about before it goes.

 

Great investment potential -Four bedroom house in Baldock

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Our Satchells sales team in Baldock have just began advertising this great four bedroom house at a price of £325,000.  These types of property, on a very popular development within walking distance of the town and station, let very well and  should achieve a rental income of around £13,800 p.a.