4.8% of Stamfordians live in shared Households

I had an interesting conversation the other day with a Stamford landlord...

 

He had been chatting with an architect friend of his, who said back in the mid 2000’s the developments he was asked to draw were a balance of 1 and 2 bed properties, compared to today where the majority of the buildings he is now designing are typically more towards 2 - 3 bedroom properties. 

As I discussed with this landlord, knowing when and where the demand of tenants is going to come from is just as important as knowing the supply side of the buy-to-let equation – in relation to the number of properties built in Stamford, their property prices, yields and rents.

In 2001, there were 51,500 households with a population of 124,800 in the South Kesteven District Council (SKDC) area.  By 2011, that had grown to 57,300 households and a population of 133,800.

Therefore, between 2001 and 2011 whilst the number of households in the SKDC area grew by 11.36%, the population grew by 7.21%

Nothing surprising there then.  But my analysis of the 2011 Census results using the most recent in-depth data on household formation (eg. ‘one person households’, ‘couples/ family households’ or ‘couple + other adults households & multi -adult households’), has displayed a sudden and unexpected break with the trends of the whole of the 20^th Century.  There has been a significant change in household formation in Stamford between 2001 and 2011.

Between 2001 and 2011, Stamford’s population increased, and due to the number of new homes being built, so did the total number of Stamford properties.  However, the growth rate of new properties being built in Stamford was much lower than expected though, but still the population had grown by what was predicted.  Meaning, Stamford’s average household size was larger than anticipated.

In fact, average household size (i.e. the number of people in each property) in 2011 was almost exactly the same as in 2001, the first time for at least 100 years it had not fallen between censuses. (Since 1911, household size has decreased by around 20% every decade).

Looking specifically at Stamford’s figures, as this is what interests us locally:

·         One person households – 32.9%              

·         Couples/family households – 62.3%

·         Couple + other adults & multi-adult households – 4.8%

This decline was reflected in large scale shifts in the mix of household types.  In particular, there were far more “couple + other adults households and multi -adult households” than expected.  It can be put down to two things; increased international migration and changes to household formation.

 

A particularly important reason for the difference can probably be attributed to the evidence that migrants initially form fewer households (i.e. two couples share one property) than those who have lived in the UK all their lives.  Also, changes to household formation patterns amongst the rest of the population, including adult children residing longer with their parents and more young adults living in shared accommodation - as can be seen in the growth of ‘Homes of Multiple Occupation’ (HMO).

So, what does all this mean for Stamford homeowners and landlords?

Well, quite a lot in fact.  There has been a subtle shift to slightly larger households in the last decade, meaning smart landlords might be tempted to buy slightly larger properties to rent out…again good news for homeowners who will get top dollar for their home as they sell on.  But now with Brexit, household formation might swing the other way in the next decade? Who knows? Watch this space!


I like to keep a close eye on the local property market on a daily basis because it enables me to give the best advice and opinion.  If you want to learn more about the Rutland and Stamford property market, feel free to pop in for a coffee at our office for a chat with me.

 

For professional advice on buying, selling, renting and managing your homes and property investments.

David Crooke
Owner & Managing Director

 

UPP PROPERTY AGENTS
Understanding People & Property

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825