Our latest property marketing insights are featured in the Summer issue of Pines and Chines magazine, the local Residents Association publication http://www.branksomepark.com
Local Property – hit by Stamp Duty (SDLT) ? – and what about apartments supply ?
Land Registry data for 2015 was not quite complete when we compiled this data on sales history across the local area. We think the 2015 figures below may have been be understated by about 8-10% (delay in registration of new title) but, even making a due allowance for that, what is clear is that, locally – mainly within BH13 and BH14 sub-codes 8 and parts of 9 – the market above £1.5 million – prime property -is ‘off’ by a substantial margin but that the market from £500,000 up to £1.5m is still healthy.
|BH13, BH14 8/9||No. of sales||Value of Sales||No. of sales||Value of Sales|
|£ million||£ million|
|> £2 million||18||£61.85||27||£88.38|
|> £1.5 million +||22||£37.99||29||£51.72|
|> £1.0 million +||54||£62.96||43||£52.39|
Increased rates of SDLT have applied for around a year now (leave aside the 2015 Autumn Statement – 3% premium for second home and buy-to-let investments – being introduced from April 2016). The implications are clearer, confirming the story of declining top end sales in London. There are still sales at the upper end. Indeed, 5 properties at prices in excess of £4 million during the second half of 2015, 4 of these paying SDLT of more than £500,000 – on top and out of taxed income (one other was a Company purchase, with lower SDLT).
So, let’s turn to apartments. It’s hard to believe but there are currently over 500 apartments in the planning pipeline (212 x 3 bed; 263 x 2 bed, plus 14 x 4 beds and 35 x 1 bed). While some of these are still only applications which may or may not achieve approval, over 400 units are already approved; and 200 of those are either completed but not yet sold or are currently under construction. There is, I suspect, a potential over-supply looming, despite the fact that not all the potential supply will be delivered. Bank lending policies will see to that.
Interestingly, while some of these new apartments are being designed specifically for the retirement market (Woodlands and Compton Acres in Canford Cliffs; The Landing in Lilliput, for example), there are several instances where existing nursing homes are being take out of commission and re-presented as new apartments, throughout the local area. The overall age demographics of the area may not currently be under threat. However, the cost of retiring here may be facing a sharp upward adjustment in prices.
The area continues to attract buyers and developers – for apartments – retirement and active alike; for houses – super homes and family homes; for diverse locations – coastal, village and sylvan. The attractions are still vital – seaside, beaches, harbour, sailing, golf, the adjacent countryside etc – and enduring. But both the Chancellor and developers, we all need to retain that lifestyle dynamic we all crave in perspective. The outcome of the forthcoming Brexit vote will deliver yet more impact on the local area without doubt.
Please contact Berkeleys today for more local market insights.