Problem or opportunity?
The orthodox way of classifying property in the UK is to look at the number of bedrooms it has rather than its size in square metres. It seems that homeowners and tenants are happy to pay for more space. It’s quite obvious, the more bedrooms a house or apartment has, the bigger it is likely to be. The reason being not only the actual additional bedroom space but the properties with more bedrooms tend to have larger / more reception rooms. However, if you think about it, this isn’t so astonishing given that properties with more bedrooms would typically accommodate more people and therefore require larger reception rooms.
In today’s Boston property market, the Boston homeowners and Boston landlords I talk to are always asking me which attributes and features are likely to make their property comparatively more attractive and which ones may detract from the price. Over time, buyers’ and tenants’ wants and needs have changed. In Boston location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods, say Wainfleet Road or Pilleys Lane can command a price nearly 50% higher than a similar house in an ‘average’ area. However, after location, the next characteristic that has a significant influence on the desirability and thus price of a property is the number of bedrooms and the type i.e. Detached/ Semi/Terraced/Flat.
In previous articles, I have analysed the Boston housing stock into bedrooms and type of property, but never before now have I cross-referenced type against bedrooms. These figures for the Boston Borough Council area make fascinating reading. It shows 81.9% of all properties in the area have 3 or more bedrooms.
I was genuinely surprised at the low numbers of one and two-bed properties, especially 2-bed semi-detached houses, especially as tenants like the smaller one and two-bed properties in Boston. You see, it might interest the homeowners and landlords of Boston, that there has been a change in the numbers of properties on the market and the split in bedrooms on the market over the last 12 months:
12 months ago, 15 one bed properties were for sale in Boston, today 38, a rise of 153%
12 months ago, 88 two bed properties were for sale in Boston, today 135, a rise of 53%
12 months ago, 122 three bed properties were for sale in Boston, today 161, a rise of 32%
12 months ago, 73 four bed properties were for sale in Boston, today 66, a drop of 10%
12 months ago, 23 five + bed properties were for sale in Boston, today 28, a rise of 22%
It can quite clearly be seen more Boston properties have become available, which can only be good news for Boston first time buyers and Boston buy to let landlords looking for a bargain (especially post-Brexit) as property prices have stopped rising at the silly rates they were 12/18 months ago.
For several years Boston buy-to-let investors have been the only buyers at the lower end of the market as they have been enticed by high tenant demand and attractive returns. Some Boston landlords believe their window of opportunity has started to close with the new tax regime for landlords, whilst it already appears to be opening wider for first-time buyers. This is great news for first-time buyers, but one final note for Boston landlords: all is not lost. You can still pick up bargains, you just need to be a lot savvier and do your homework. If you would like more information or advice then please contact me at firstname.lastname@example.org.