Beast from the East, Russia, Facebook, Brexit, Trump, House prices up, House prices down ... the Press is full of column inches on Brit’s favourite subjects of politics, scandal, weather and not forgetting (and I appreciate the irony of this!) the property market. As an agent belonging to a national group of letting and estate agents, the one thing that is immediately apparent, having talked to my fellow property professionals from around the UK, is that the UK does not have one property market. It is a hodgepodge patchwork (almost like a fly’s eye) of lots of small property markets all performing in different ways.
… And that made me think … is there just one Loughborough Property Market or many?
I like to keep an eye on the property market in Loughborough on a daily basis because it enables me to give the best advice and opinion on what (or not) to buy in Loughborough, be that a buy-to-let property for a Loughborough landlord or an owner occupier house for a home owner. So, I thought, how could I scientifically split the Loughborough housing market into segments, so I could see which part of the market was performing the best and the worst.
I decided the best way was to split the Loughborough property market into four equal size price bands (into terms of households for sale). Each price band would have around 25% of the property in Loughborough, from the lowest in value (the Lowest Quartile or 25%) all the way through to the highest 25% in terms of value, the Upper Quartile. Looking at the market, I have calculated that these are the price bands in Loughborough are as follows:
- Lowest Quartile (lowest 25% in terms of value) … Up to £125,000
- Lower/Middle Quartile (25% to 50% Quartile in terms of value) ... £125,000 to £170,000
- Middle/Upper Quartile (50% to 75% Quartile in terms of value) ... £170,000 to £250,000
- Upper Quartile (highest 25% in terms of value) ... £250,000 Upwards
So, having split the Loughborough Property Market into approximately four equal sizes, the results in terms of what price band has sold (subject to contract or ) the most is quite enlightening -
Up to £125,000
£125,000 to £170,000
£170,000 to £250,000
The best performing price range in Loughborough is the middle market. As I would expect, the upper quartile (the top 25%) is finding things tough. Interestingly for Loughborough landlords, the lower market is also selling well, meaning there are plenty of Loughborough landlords buying properties to add to their buy to let portfolios. Even though the number of first time buyers did increase in 2017, it was from a low base and the vast majority of 20 something’s cannot buy, so need a roof over their head (hence the need to rent somewhere).