10 Sep 2016

82.2% of Ipswich Properties have 3 or more bedrooms – Problem or Opportunity?

    

The orthodox 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 property market, the Ipswich homeowners and Ipswich 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 Ipswich, location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods, say off Constitution Hill or Rushmere can command a price nearly 50% higher than a similar house in another 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).

In previous articles, I have analysed the Ipswich housing stock into bedrooms and type of property, but never before now have I cross-referenced type against bedrooms. These figures for the Ipswich Borough Council area make fascinating reading. It shows 82.2% 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 semi detached houses, especially as tenants like the smaller one and two bed properties. You see, it might interest the homeowners and landlords of Ipswich, 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

 

 

Detached

Semi-detached

Terraced (including end-terrace)

Flat

1 bedroom

20

75

48

351

2 bedrooms

179

1,033

1,707

1,848

3 bedrooms

1,381

10,703

5,857

317

4 bedrooms

1,724

1,935

850

52

5 or more bedrooms

721

531

234

16

 

 

·         12 months ago, 94 one bed properties were for sale in Ipswich, today 103, a rise of 10%

·         12 months ago, 260 two bed properties were for sale in Ipswich, today 230, a drop of 12%

·         12 months ago, 271 three bed properties were for sale in Ipswich, today 282, a rise of 4%

·         12 months ago, 148 four bed properties were for sale in Ipswich, today 107, a drop of 28%

·         12 months ago, 70 five + bed properties were for sale in Ipswich, today 62, a drop of 11%

 

 

For several years Ipswich buy-to-let investors have been 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 Ipswich 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 Ipswich landlords ... all is not lost ... you can still pick up bargains, you just need to be a lot more savvy and do your homework. For any further advise please feel free to contact me. Rents 25 Princes Street Ipswich 01473225268 or michaela@rents.co.uk


Rents Team