89.3% of Stamford properties have 3 or more bedrooms – Problem or Opportunity?

The orthodox way of classifying property in the UK is to look at the number of bedrooms rather than its size in square metres (although now we are leaving the EU, I wonder if we can go back to feet and inches?).  It seems that homeowners and tenants are happy to pay for more space.

It’s quite obvious, the more bedrooms a property has the bigger it is likely to be. The reason being not only the actual additional bedroom space, but homes with more bedrooms tend to have larger / more reception (living) 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.

The homeowners and 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 Stamford, location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods, say off Casterton Road, Rutland Terrace or Roman Bank, 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 property, is the number of bedrooms and the type (i.e. Detached/ Semi/Terraced/Flat).

In previous articles, I have analysed the Stamford housing stock into bedrooms or type of property, but until now I have never cross-referenced bedrooms against type.  These figures for the South Kesteven District Council area make fascinating reading; it shows 89.3% of all properties in the area have 3 or more bedrooms.

	Detached	Semi-detached	Terraced (including end-terrace)	Flat
1 bedroom	10	35	20	74
2 bedrooms	281	930	1,170	516
3 bedrooms	3,002	6,627	3,527	109
4 bedrooms	6,469	1,527	765	29
5 or more bedrooms	2,874	401	172	6

 

I was genuinely surprised at the low numbers of 1 and 2 bed properties, in particular 2 bed semi-detached houses, especially as tenants like the smaller 1 and 2 bed properties in Stamford.  You see, it might interest the homeowners and landlords of Stamford, 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, 4 x 1 bed properties were for sale in Stamford, today 15, a rise of 275%

·         12 months ago, 20 x 2 bed properties were for sale in Stamford, today 26, a rise of 30%

·         12 months ago, 38 x 3 bed properties were for sale in Stamford, today 55, a rise of 45%

·         12 months ago, 26 x 4 bed properties were for sale in Stamford, today 22, a drop of 15%

·         12 months ago, 16 x 5+ bed properties were for sale in Stamford, today 25, a rise of 56%

 

It can quite clearly be seen more Stamford properties have become available, which can only be good news for Stamford first time buyers and Stamford 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 Stamford buy-to-let investors have been the only buyers at the lower end (starter home sector) of the market, as they have been enticed by high tenant demand and attractive returns.  Some 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 landlords – all is not lost ... you can still pick up bargains, you just need to be a lot savvier and do your local homework.

For advice on buying, selling, renting and managing your homes and investments please contact me via david@upp-property.co.uk or call me on 01780 484 554.