Bexley Apartments are 3.7% more affordable than 10 years ago

-

My research shows that certain types of Bexley property are more affordable today than before the 2007 credit crunch.

Roll the clock back to 2007 just before the credit crunch hit which saw Bexley property values plummet like a lead balloon and the Bexley property market had reached a peak with the prices for Bexley property hitting the highest level they had ever reached.  Between 2008 and 2010, Bexley property values lay in the doldrums and only started to rise in 2011, albeit quite slowly to begin with.

Nevertheless, even though property values have now passed those 2007 peaks, my research indicates that Bexley property, especially flats/apartments, are now more affordable than they were before the 2008 credit crunch.

Back in 2007, the average value of a Bexley flat/apartment stood at £240,750 and today, it stands at £294,424, a rise of £53,674 or 22.3%.


However, between 2007 and today, we have experienced inflation (as measured by the Government’s Consumer Price Index) of 25.97% meaning that in real spending power terms Bexley apartments are 3.7% more affordable than in 2007. Looking at it another way, if the average Bexley apartment (valued at £240,750 in 2007) had risen by 25.97% inflation over those 10 years, today it would be worth £303,273 (instead of the current £294,424).


The point I’m trying to get across is that Bexley property is more affordable than many people think.  Bexley first time buyers can get on the ladder as 95% mortgages have been readily available to first-time buyers since 2010.

It really comes down to a choice and if Bexley first-time buyers can get over the hurdle of saving the 5% deposit for the mortgage on the property – they will be on to a winner, especially with these ultralow mortgage interest rates, a mortgage can be between 10% and 30% cheaper per month than the rental payments on the same house.

So why aren’t Bexley 20 somethings buying their own home?

Back in the 1960’s and 1970’s, renting was considered the poor man’s choice in Bexley (and the rest of the Country) a huge stigma was attached to renting. However, over the last 10 years as a country, we have done a complete U-turn in our attitude towards renting - meaning that many people find renting a better option and a lifestyle choice.

Saving the 5% deposit means going without many luxuries in life (such as holidays, every satellite movie and sports channel, socialising or the latest mobile phone – even if only in the short term) therefore instead of saving every last pound to put towards a mortgage deposit Bexley 20 somethings choose to rent.

There is no denying the simple fact that over the next 10 to 15 years, the people who choose to rent instead of buy in Bexley will continue to rise.

Therefore, everyone in Bexley has a responsibility to ensure that an adequate number of quality Bexley rental properties are safeguarded to meet those future demands. Interestingly, what I have noticed though over the last few years are the expectations of Bexley tenants on the finish and specification of their Bexley rental property.

I have perceived that in the past, what a tenant wanted from their Bexley rental property was moderately unassuming because renting a property was only a short-term choice to fill the gap before jumping on the property ladder. Before the millennium, wood chip wall paper and twenty-year-old kitchen and bathroom suites were considered the norm.

However, Bexley tenants’ expectations are becoming more discerning as each year goes by.  I have also noticed the length of time a tenant remains in their Bexley property is becoming longer (and this was backed up recently by stats from a Government Report), although I have noticed a tendency for many Bexley landlords not to keep the rental payments at the going market rates  - maybe a topic for a future article for my blog?

The bottom line is this … Bexley landlords will need to be more conscious of tenants needs and wants and consider their financial planning for future enhancements to their Bexley rental properties over the next five, ten and twenty years -  e.g. decorating, kitchen and bathroom suites etc etc ..

The present-day and future situation of the Bexley private rental property market is important, and I frequently liaise with Bexley buy-to-let investors looking to spread their Bexley rental-portfolios. I also enjoy meeting and working alongside Bexley first time landlords, to ensure they can navigate through the minefield of rental voids, the important balance of capital growth and yield and ensuring the property is returned back to you in the future in the best possible condition.


Comments

Post a Comment

Popular posts from this blog

79% More Bexleyheath Home Owners Wanting to Move Than 12 Months Ago

-
Image
As I have mentioned a number times in my local property market blog, with not enough new-build properties being built in Bexley Borough area to keep up with demand for homes to live in (be that tenants or homebuyers), it’s good to know more Bexley Borough home sellers are putting their properties on to the market than a year ago. At the start of 2007 there were 84 properties for sale in Bexleyheath (DA6) but by May 2008, when the credit crunch was really beginning to bite, that number had risen to 162 properties on the market at a time when demand was at an all-time low, thus creating an imbalance in the local property market. Basic economics dictates that if there is too much supply of something and demand is poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In fact, house prices dropped between 15% and 20% depending on the type of Bexleyheath property between the end of 2007 and Spring 2009. However, over the last five years, we have seen a steady ...
Read more

Bexley’s 826 Mortgage Time-Bombs?

-
Image
According to my research, of the 8,264 properties in Bexley, 3,824 of those properties have mortgages on them. 94.5% of those mortgaged properties are made up of owner-occupiers and the rest are buy to let landlords (with a mortgage). The concern is that 826 of those Bexley mortgages are interest only. My research also shows that, each year between 2017 and 2022, 10 of those households with interest only mortgages will mature, and of those, 2 households a year will either have a shortfall or no way of paying the mortgage off. Now that might not sound a lot – but it is still someone’s home that is potentially at risk. Theoretically this is an enormous problem for anyone in this situation as their home is at risk of repossession if they don’t have some means to repay these mortgages at the end of the term ( the typical term being 25 to 35 years). Banks and Building Societies are under no obligation to lengthen the term of the mortgage and, when deciding whether they are p...
Read more

Is Bexley Borough still a Great Place to Invest?

-
Image
Bexley is a fantastic place for families, retired couples or those wishing to travel or commute into London or further afield. It is situated 14 miles south east from the centre of London sitting on the border with the rolling hills of Kent. It is one of the greenest London boroughs with over 100 parks, as well as a walking route along the River Thames. It is hardy surprising that first-time buyers and families have chosen to settle in the area long-term. Although Bexley offers a village feel, it is very well connected with Greenwich, Bromley and Dartford nearby, with excellent rail, road and bus links into London. The average train time from Bexley to central London is just 38 minutes with its main line station linking London Bridge, London Charing Cross and London Cannon Street. Alternatively, if you are travelling by car, the A20 and A2 run through the centre of the borough before joining up to travel directly into Canary Wharf and towards the City. Overall safety and reasonable hou...
Read more