The usual 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 house or apartment has, the bigger it is likely to be. The reason being not only the actual additional bedroom space, but the properties 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.
In today’s Runcorn property market, the Runcorn homeowners and Runcorn 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 Runcorn, location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods, say Norton or Higher Runcorn 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).
Previously, I have analysed the Runcorn housing stock into bedrooms and type of property, but never before now have I cross-referenced type against bedrooms. These figures for the Halton Borough Council area make fascinating reading. It shows 85.3% of all properties in the area have 3 or more bedrooms
I was genuinely surprised at the low numbers of one and two bed properties, especially 2 bed semis detached houses, especially as tenants like the two bed properties in Runcorn. You see, it might interest the homeowners and landlords of Runcorn, 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, 37 one bed properties were for sale in Runcorn, today 33, a drop of 11%
- 12 months ago, 280 two bed properties were for sale in Runcorn, today 258, a drop of 8%
- 12 months ago, 469 three bed properties were for sale in Runcorn, today 375, a drop of 20%
- 12 months ago, 189 four bed properties were for sale in Runcorn, today 167, a drop of 12%
- 12 months ago, 71 five + bed properties were for sale in Runcorn, today 52, a drop of 27%
For several years Runcorn buy-to-let investors have been almost the only buyers at the lower end (starter homes) of the market, as they have been enticed by high tenant demand and attractive returns. Some Runcorn 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 Runcorn landlords … all is not lost … you can still pick up bargains, you just need to be a lot more savvy and do your homework.
If you’re interested in investing or have already invested in the Runcorn property market and want to discuss maximising your investments, pop in for a coffee at 60A High Street, Runcorn, WA7 1AW or visit our website www.homesmartlettings.com