Property of the week

Blacksmiths Grove Fishtoft Boston £120,000

This weeks gem of a property is this modern semi detached house located within a highly sought after area in Fishtoft which has an asking price of £120,000

This property offers well presented accommodation throughout and includes entrance hall, kitchen, downstairs cloakroom, kitchen diner, conservatory, 2 bedrooms and bathroom. There is an enclosed laid to lawn to the rear of the house. The property also benefits from 2 allocated parking spaces.

The house is set within a very desirable area which generally is very popular in the rental market so we would anticipate the property to gain a rental yield in the region of 5.95%

The property is currently on the market with Drury’s Estate Agents in Boston. Click on the link below to see the details in full

http://www.rightmove.co.uk/property-for-sale/property-60777278.html

 

House Prices in Boston rise by more than 9% in the last 18 months

Over the last month, the Boston property market has seen some interesting movement in house prices, as property values in the Boston Borough Council area dropped by 2.5% in the last month, to leave annual price growth at 1.3%.

These don’t compare as well to the national figures, where property prices across the UK saw a monthly uplift of 0.42%, leaving the annual property values across the country 8.3% higher. This might be down to the constraining factors of Stamp Duty changes in the spring and more recently our friend Brexit, however, it does mean there might be some bargains out there for landlords and homebuyers alike.

Looking at the figures for the last 18 months makes even more fascinating reading, whereby house prices are 9.3% higher, again thought provoking when compared to the national average figure of 13.6% higher.

However, it gets more remarkable when we look at how the different sectors of the Boston market are performing. Over the last 18 months, in the Boston Borough Council area, the best performing type of property was the detached, which outperformed the area average by 0.16% whilst the worst performing type was the apartment, which under-performed the area average 1.77%.

Now the difference doesn’t sound that much, but remember two things, this is only over eighteen months and secondly, the gap of 1.93% (the difference between the detached at +0.16% and apartments at -1.77%) converts into a few thousand pounds disparity, when you consider the average price paid for a detached property in Boston itself over the last 12 months was £189,700 and the average price paid for a Boston apartment was £89,400 over the same time frame.

I know all the Boston landlords and homeowners will want to know how each of the property types have performed, so this is what has happened to property prices over the last 18 months in the area…

  • OVERALL AVERAGE +9.3%
  • DETACHED +9.5%
  • SEMI DETACHED +9.5%
  • TERRACED                  +9.2%
  • APARTMENTS             +7.4%

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So what does all this mean to Boston homeowners and Boston landlords and what does the future hold?

When I looked at the month-by-month figures for the area, you can quite clearly see there is a slight tempering of the Boston property market over these last few months. I have mentioned in previous articles that the number of properties on the market in Boston has increased this summer, something that hasn’t happened since 2008. Greater choice for buyers means, using simple supply and demand economics, that top prices won’t be achieved on every Boston property. You see some of that growth in Boston property values throughout early 2016 may have come about because of a surge in house purchase activity resulting from the increase in stamp duty on second homes from April, thus providing a temporary boost to prices.

However, it may be possible the recent pattern of robust employment growth, growing real earnings and low borrowing costs will tilt the demand/supply seesaw in favour of sellers and exert upward pressure on prices once again in the quarters ahead.

So Boston property values, assuming that everything goes well with Brexit, I believe in twelve months’ time we should see values in the order of 1% to 2% higher.

What is really happening in the Boston property market?

Well its been a few months since Brexit and as we settle into the Autumn with Great British Bake Off, Strictly and the Football season … the newspapers are returning to their mixed messages of good news, bad news and indifferent news about the Brit’s favourite subject after the weather … the property market.

The thing is the UK does not have one housing market. Instead, it is a patchwork of mini property markets all performing in a different way. At one end of scale is Kensington and Chelsea, which has seen average prices drop in the last twelve months by 6.2% whilst in our East Midlands region, house prices are 7.9% higher. But what about Boston?

“Property prices in Boston are 4.7% higher than a year ago and 0.6% higher than last month.”

So what does this mean for Boston landlords and homeowners? Not that much unless you are buying or selling in reality. Most sellers are buyers anyway, so if the one you are buying has gone up, yours has gone up.  Everything is relative and what I would say is, if you look hard enough, there are even in this market, there are still some bargains to be had in Boston.

However, the most important question you should be asking though is not only is what happening to property prices, but exactly which price band is selling? I like to keep an eye on the property market in Boston on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Boston.

If you look at Boston and split the property market into four equalled sized price bands. Each price band would have around 25% of the property in Boston, from the lowest in value band (the bottom 25%) all the way through to the highest 25% band (in terms of value).

  • Nil to £100k 125 properties for sale and 31 sold (stc) i.e. 19% sold
  • £100k to £130k 104 properties for sale and 49 sold (stc) i.e. 32% sold
  • £130k to £180k 121 properties for sale and 58 sold (stc) i.e. 32% sold
  • £180k + 112 properties for sale and 28 sold (stc) i.e. 20% sold

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Fascinating don’t you think that it is the middle Boston market that is doing the best?

The next nine months’ activity will be crucial in understanding which way the market will go this year after Brexit … but, Brexit or no Brexit, people will always need a roof over their head and that is why the property market has ridden the storms of oil crisis’ in the 1970’s, the 1980’s depression, Black Monday in the 1990’s, and latterly the credit crunch together with the various house price crashes of 1973, 1987 and 2008.

And why? Because of Britain’s chronic lack of housing will prop up house prices and prevent a post spike crash. … there is always a silver lining when it comes to the property market!

If you would benefit by getting some free, impartial advice on the current value of your home or if you are thinking of buying an investment property then we would love to hear from you. Please call the team on 01205 352019.