The Bracknell ‘No Nonsense’ Property Market Blog – February 2021
Here is the first instalment of the Bracknell 'No Nonsense' Property market blog. Written by Avocado managing partner, Ian Macbeth.
Topics Covered:
- First time buyer mortgages to change the Bracknell property market in 2021
- Required earning ratios and lower interest rates to bring more buyers to Bracknell, Warfield and Binfield.
- Stats you will want to read in your postcodes.
- What are people asking Google? (Current property market trends)
- Expectations for the Bracknell property market in February and March.
First time buyer mortgages to change the Bracknell property market in 2021?
At the end of November it would be almost impossible to buy a property in Bracknell using a 90% loan to value mortgage (10% deposit). Now there are multiple options for first time buyers to get mortgages they simply could not just a few weeks ago. Most of the major mortgage lenders have re-entered the market for first time buyers and we are now seeing rates at the higher loan to value mortgages drop.
Summary/Forecast
This is positive news for the 200k-350k price range in the Bracknell market and as first time buyers got pushed aside in the buzz of the stamp duty holiday they will likely to be the dominant purchaser demographic in 2021.
Required earning ratios and lower interest rates to bring more buyers to Bracknell, Warfield and Binfield
As I write this blog (end of Jan 2021) news is coming through that some banks are now offering mortgages at a five times earning ratio. This is a huge jump from the 4.3 average that was around six months ago.
How will this impact homeowners in Bracknell? Well It means buyers that could get a maximum mortgage of X, can now relook at their options with mortgage advisers and potentially stretch their mortgage value. Meaning a higher purchasing value on the house they want to buy. On top of the increase in earning ratios, the mortgage interest rates are declining. This means potential buyers in Bracknell will now be able to buy at a higher price and potentially pay less each month. Seems like a win win for Bracknell buyers!
Summary/Forecast
I think this will have a really good impact on the second time buyer market (first time sellers). In Bracknell a classic move is from a two/three bedroom terrace to a property with more parking, semi-detached or even a detached. These mortgage changes will give these types of homeowners more options and make it more affordable.
Stats you will want to read in your postcodes
This is the part of the blog where I share interesting figures (or at least interesting to me). I am a bit of a geek for trends and stats.
Here at Avocado we have access to a whole range of different data that other local agents won’t; so if there is something you want to know please reach out…
RG12 Postcode
Total Homes in RG12 = 25,367
Average Price in RG12 = £314,013
Total Property Completions in last 12 months = 502 (2489 in last 36 months)
Average household income in RG12 = £41,605
RG42 Postcode
Total Homes in RG42 = 12,476
Average Price in RG42 = £433,348
Total Property Completions in last 12 months = 283 (1,481 in last 36 months)
Average household income in RG42 = £59,091
What are people asking Google? (Current property market trends)
There is a website called Answer the public that will give you the questions which people are asking google on any topic. In this case, I wanted to know the questions people are asking around the property market…
People are currently asking google if the housing market will crash in 2021. A sign of mix media messages and potential uncertainty. This is very common at the start of a new year and with the world in a global pandemic, it’s understandable. The good news is that it looks very unlikely to see a crash and with Bracknell being such a popular place to live, I expect prices to stay consistent.
Another popular question being asked in google is ‘Where is the property market heading?’. My view is that we are in the hands of the banks and governments stance on the stamp duty holiday… What will they do next to keep a positive momentum? Will the stamp duty be extended or will we see something different?
A third very popular question regarding estate agents is ‘Are estate agents open in lockdown?’. As many of you know, we are open and we are doing all we can to keep the viewings and appointments as safe as possible. There are covid-19 rules in place to ensure the safety of the viewer, homeowner and estate agent.
Expectations for the Bracknell property market in February and March
So the golden question… What will the housing market do next? This month and the next will be dominated by the stamp duty holiday end date (subject to an extension between now and you reading this blog). Solicitors seem to be much more proactive in comparison to December and it is clear that people in the trades are going to be busy on the next coming moves due to the back log of completions. Removal companies are already getting booked up for March, so get in earlier if you’re planning a completion.
As for house prices I think we will potentially see a seesaw effect in the opposite direction to what happened last year. The market split in half and properties priced over 500k increased due to the demand of the stamp duty holiday. I think this will level out in 2021 (again subject to an extension) and the prices sub 350k will have a more positive year. The reason for this is that we are already seeing a drop in properties for sale at this price range. The positive mortgage news, we should see an increase in first time buyers pushing up demand levels in the sub 350k prices too.
I hope you enjoyed the first edition of the Bracknell ‘no nonsense’ property market blog. There is a lot of detail in this blog and the forecasting is only my opinion. I have lived and breathed the property market for over 18 years now, so please reach out if you need some advice or if you have a question about any part of the blog.
To get next months Bracknell market update, You can fill out the contact form via the link here.
Thanks for reading,
01344 249500
ian@avocadoberkshire.co.uk