Guest blog by Gavin Pike MNAEA – Senior Sales Partner, Martin & Co Witney
Ask any economics student what determines price and the instant answer will be ‘supply and demand’. This is as true for housing as is for anything else from crude oil to bitcoin.
Critically for the house seller, some of these factors are beyond your control whilst others can be made to work in your favour.
One of the reasons prices are so high is that a very small percentage of the housing stock is available at any one time. Last year less than 4.24% of Oxfordshire’s housing stock was sold. In other words, any one Oxfordshire home comes to the market on average every 23½ years! Read more
In my last blog I wrote about how the volume of residential property sold had dipped an astonishing 29% in 2017 (Oxfordshire Property Sales Plummet) so it seemed a good time to conduct a deep dive into the rental market in West Oxfordshire, with a particular focus on Witney as the main urban centre.
Supply of Rental Property Increases
We track the supply of rental properties in Witney over time so we can provide contemporary, unique advice. What’s been particularly noteworthy is that the supply of property to rent in OX28 is up by 55% on 2017 and this isn’t specific to any given size property:
In 2016-17, the private rented sector accounted for 4.7 million or 20% of households.
The latest English Housing Survey (2016–17) has just been published and it reveals the continued growth of the private rented sector. Over a fifth of households (20.3%) now rent privately, up from 19.9% a year earlier and a higher proportion than ever before.
As is well documented, across all the regions, the growth in London’s rental sector has been most pronounced. It now accounts for 30% of households, up 11.6 percentage points from ten years ago. While there are over 2 million more households renting privately than there were ten years ago, almost half a million of these are in London.
In 2006-07, about three quarters (72%) of those aged 35-44 were owner occupiers. By 2016-17, this had fallen to half (52%). While owner occupation remains the most prevalent tenure for this age group, there has been a considerable increase in the proportion of 35-44 year olds in the private rented sector (11% to 29%). The proportion in the social rented sector did not change.
The most recent available figures for West Oxfordshire show that 12.5% of households live in social rented accommodation and 14.9% (6,243 households) in privately rented accommodation. Delving into the detail a bit more; there are 1,525 privately renting households in Witney (13.4%) and 1,660 in Carterton (28.2%).
The latest data from the ONS suggests that the volume of property transactions in Oxfordshire have plummeted. Across the County as a whole, 26% fewer properties have been sold than 12 months previously whilst values have risen in line with inflation and crept up +2.7% to an average of £356,262. This compares with an average price of £243,339 (up +5.3%) across England. Read more
Supply & Demand – Population
Local government forecasts predict a 29% increase in the population of the Witney area over the next 10 years. Coupled with the exceptionally low rate at which we are building new homes and sales volumes (the number of properties sold) dropped by 19% in 2017 (compared with 2016) and the market fundamentals remain out of balance. Read more
On 9th November 2017, four professionals from some of Oxfordshire’s local businesses gathered together to present at the historic Witney Blanket Hall on investing in Oxfordshire property.
If you missed the presentation or in the absence of the Great British Bake Off you’d like to watch a video of the presentation then this is available on our facebook page which can be accessed here .
If you would like to download the slides from the presentation, you can do so here – http://bit.ly/seminarslides
Ten years on from the housing crash and it’s worth taking stock and looking back. Counter-intuitively, in 58% of wards, residential properties are selling for less now, after accounting for inflation, than they were in 2007. Read more
The ONS has just released average house price data per square metre for properties across England. At a regional level, a buyer in London should expect to pay around £6,639 per square metre (£617 per square foot). More locally, we’ve identified the cost in £/ metre and feet – depending on your vintage! Read more
Would you like to know more about investing in local property? Whether you’re a seasoned landlord, just dipping your toe in the water or on a fact finding mission then this event is essential to get all the latest facts, tips and critical information to get the very best advice about investing in property in West Oxfordshire. Our panel of experts from local, Witney businesses are on hand to dispense free advice at 6pm on Thursday 9th November at the historic Witney Blanket Hall. Experts from Everyman Legal (solicitors), M Group (accountants), Martin & Co (local property experts) and London & Country (mortgages) will be on hand after the 1 hour presentation to answer any further queries you may have. We’ll even provide something to eat and drink!
Please register now for your free tickets as spaces are limited: witneypropertynews.com or look on Facebook for Martin & Co Witney for more details
I was recently asked by WODC to put together a brief paper on the local Private Rented Sector (PRS) to help inform a cabinet level debate. Having done the legwork I thought I’d share my findings with you as some light reading. The aim of this is to help any potential buy-to-let investors make an informed decision about the type of property to purchase. Read more
The interesting times in which we live continue; political uncertainty, continued ultra-low interest rates and the creeping rise of inflation are all having an impact on local property prices. Focussing on Witney and Carterton and specifically looking at houses (excluding new builds) sold over the last 5 years, it’s interesting to note that there has been a see-saw effect: Read more
The supply of certain types of privately rented properties in Witney is currently well above average and, in some cases, hitting record levels. This is particularly true of 2-bedroom flats and 3-bedroom houses although there has also been a spike in 2-bedroom houses. Read more
Interestingly, we’ve seen a surge in the availability of rental properties being offered in the local market. This is particularly acute in relation to 2-bedroom properties in Witney, there are now 48 listed TO LET of which 31 are flats. Once we ‘zoom out’ slightly, the picture is less worrying, with only nine 2-bed properties listed in Carterton, this is below the usual norm. Interestingly, supply currently exceeds demand for 3-bedroom houses too, but this should rebalance as families aim to move during the school holidays. Here’s the latest availability for properties in Witney to rent: Read more
Since the 1970s, housing starts and completions across England and Wales have largely been on a downward trajectory.
The long-run average (over the last 50 years) for starts and completions has been around 190,000 per annum but after the global financial crisis lows of 93,000 (starts) per annum and 113,000 per annum (completions) had been reached.