Huge drop in Sales transactions – what does it mean for a Bournemouth property owner?

Property transactions have dropped over 30% in the last year across the UK after the numerous impacts on the property market. Is it any surprise with the changes to Stamp Duty, BTL tax changes, and of course the economic uncertainties with the likes of Britexit and the falling pound? But what does this mean for the home owners and property investors of Bournemouth?

There are just over 2,600 properties currently on the market for sale in Bournemouth, which is almost exactly the same as there were last year – so no change there. What we are seeing however is that time on the market is increasing – around 6% of an increase on last year taking the average time to sell up to 170 days. In real terms on a local level – we are seeing a number of higher valued properties sitting on the market for longer whereas the smaller 2-3 bedroom properties are still selling well. What this shows is that fewer people are looking to upsize and would rather sit and wait with money in the bank to see what happens with the market.

We are of course seeing increasing levels of small studios and 1 bedroom flats coming to the market – some of which are from landlords looking to sell part of their portfolio to prepare for the tax changes affecting mortgage interest relief.

So is it all doom and gloom for people looking to invest in Bournemouth property?

Well no, not really. For starters, property prices are showing no signs of slowing down; even with the economic changes, gloomy media reports, and increasing time on the market to sell – we have seen consistent capital growth. It wasn’t too long ago that I wrote about now being the BEST time to invest, and I really still believe that. Unfortunately it is not possible to go back in time 20 years and buy up the whole town to now sell at 300% of what you paid for it. What you can do however is look at how resilient the market is, how it continues to go up – couple that with the housing shortage and growing rents to decide that yes – it is actually a great time to invest.

I think a lot of new investors are being discouraged from the market by older more experienced landlords who have been hit by recent changes. It is very important to listen and learn from experienced professionals – but it is also important to make sure the advice is relevant to you and your current situation. For example, many larger landlords are selling because of the change to mortgage interest relief. However if you are a new investor, this isn’t as much of a problem in that you can plan your strategy ahead of these changes so they don’t affect you. Further from that, you can use this to your advantage to get some great deals where investors are offloading their property in a rush.

If you are looking to start investing in the Bournemouth property market, do your research and due diligence, speak to the experts – I am always happy to have a phone conversation or meet-up, and most importantly – take action.

All the best.

Luke