Most
Neath homeowners born before 1960 have been in their homes for more than 25
years.
Yet
of all the properties sold in the UK since the first lockdown in the summer of
2020, 50% of those property owners had only been in their homes for six years
and four months or less. That means we almost have a two speed housing market.
One
market of homeowners in their 20s and 30s who move every four to five years and
another property market of homeowners who, when they hit their late 40s, tend
to stay put for decades. Yet now those mature homeowners, many of whom are
retired and on fixed incomes with pensions, are finding it a lot more
challenging to make ends meet with the cost-of-living crisis.
Evidence
suggests nationally and locally, a lot of larger houses (property which tends
to be owned by mature homeowners) have come onto the market in the last 12
months compared to the previous few years.
There
has been a drop of 22.9% of properties priced up to £200,000 on the market in
the UK in the last 12 months, yet an increase of 13.3% of properties priced
between £500k and £1m.
Focusing on the lower price range nationally, there are 39.4% fewer properties for sale in the price range up to £100k, 27% fewer in the £100k to £150k range and 14.9% fewer in the £150k to £200k range. The range that has seen the highest growth is the £600k to £750k, which has grown by 14.2%.
Looking
closer to home in Neath …
there are 67% more properties for sale in the Neath area today, compared to a year ago. (185 properties for sale now compared to 111 a year ago).
But
it gets much more interesting when you split the increases by bedrooms and
property type.
Properties
with more bedrooms tend to be more expensive than those with fewer. Also,
detached and semi-detached properties are more expensive than terraced/townhouses
and apartments.
- 4-bed Neath properties – an increase of 81%
- 3-bed Neath properties – an increase of 80%
- 2-bed Neath properties – an increase of 77%
And
now, by type …
- Neath detached properties – an increase of 43%
- Neath semi-detached properties – an increase of 86%
- Neath terraced/town house properties – an increase of 62%
The
increase in these larger Neath homes is great news for second or third-time
movers, as it releases larger homes for them to bring up their young families.
Yet,
the other side is the lack of properties for these mature Neath homeowners to
buy.
There are 12.7 million people aged 65 and over
in the UK (19% of the total
population), yet there are only 2 million bungalows (which represent 7.2% of
all UK property).
When it comes to new properties, the figures
are even worse.
Of the 173,660 properties built in 2019, only
2,384 were bungalows.
And
this is where the annexe could be one part of the solution.
Annexes
are buildings often erected in gardens or extended onto an existing property to
be used as separate and independent living accommodation.
Generally,
the ‘granny annexe’ has been used to keep one’s parents and grandparents nearby
whilst retaining their independence. Roll the clock back to the Millennium;
annexes were seen as excess accommodation that added little to the saleability
or value of property.
Interestingly
though, in the last few years, the annexe has had a renaissance and has become
a practical, economical and emotional answer for a more flexible group of
homeowners.
Lockdown
brought working from home to the fore, and the annexe is undoubtedly an
excellent solution for many homeowners.
Lockdown
saw many people recognise the importance of having their family close by. I
have seen several mature Neath homeowners build an annexe extension in the
garden, then move into the annexe themselves and give their original property
to their children to live in. Thus
helping two families with their accommodation needs and the advantage of shared
fuel costs (plus other benefits such as childcare).
Also,
as mortgage rates are rising, the annexe could be the salvation for either your
first-time buyer child/grandchild who cannot afford to buy their first home because
of mortgage affordability rules or who is finding it tough to save a deposit
for a mortgage.
The
demand is there for annexes. In December 2020, Rightmove reported a
year-on-year 89% increase in the number of home buyers and tenants searching
for the term ‘annexe’. Demand is high and supply, as seen by these statistics,
is low.
Of
the 185 properties for sale in the Neath area, only 12 have an annexe.
I
believe the lockdown made many of us look at how we live in the UK. Many people
are adopting, adapting and changing how they look at housing. With recent
planning regulation changes, the rules were relaxed a few years ago, which
allowed homeowners to extend their homes without planning permission in an
arrangement called ‘Permitted Development’.
If
you are a mature/older Neath homeowner or have mature/older parents and want to
look at all your options regarding upsizing, downsizing and annexes then,
without any obligation, drop me a message and let’s chat through your options.
For
everyone else in Neath, what do you think about annexes? And what other
solutions could help solve the housing issue in Neath and the UK as a whole?
