The Affordability of Buying Property in Banbury

Looking back at the 75th Anniversary of the D-Day landing a few months ago, it reminded me of the huge changes that have happened to Banbury and more specifically the Banbury property market since WW2. Back in 1946, the average wage in Banbury was just over £5 a week and to buy an average car would cost you just under £600, yet this is a property blog, so..

The average value of a Banbury property in 1946 was £1,384

In fact, in those 75 years, the average Banbury house had doubled in price by 1961, then again in 1971, 1975, 1980, 1988, 2000 and 2006. Now a lot of those increases (especially in the 1970’s) were caused by hyperinflation, yet since the start of the 21st Century inflation has been kept low and since the Credit Crunch (2008/9), whilst property values have been rising, they haven’t been at the rates experienced in the latter half of the 20th Century.

Now what a property sells for is irrelevant, its whether someone can afford it.

Increases in Banbury property values have produced huge increases in equity for many Banbury homeowners and Banbury buy to let landlords, yet on the other side of the coin also making housing unaffordable for other people. The best measure of the affordability of housing is the ratio of Banbury property values to Banbury average earnings (i.e. salary/wages). The ratio works on the basis the higher the ratio, the less affordable properties are.

In 1997, the average value of a Banbury property was 3.9 times higher than the average annual wage in Banbury, in 2007 it peaked at 8.8, yet two years later it had dropped to 7.2 and since then has slowly risen to 9.7 times higher!

It can be seen that even though property in Banbury became more affordable after the 2007/8 property crash (i.e. the ratio dropped), in subsequent years, with house values rising but earnings/salaries not keeping up, the ratio started to rise. This has meant there has been a decline in affordability of property in Banbury over the last five years - so for those on particularly low incomes or with little capital, it unfortunately means that buying a Banbury home will never become an option.

Therefore, the demand for private rented properties in Banbury will continue to grow as many young Banbury people are deciding to rent instead of buy their own house (knowing when their parents pass away, the equity built up in their parents property will be passed down - and then they can buy in their 50’s and 60’s - just like it happens in Germany).

Yet, that is many decades away and with fewer Banbury people wanting or able to save up the 5% deposit required by mortgage lenders, more and more people are looking to rent. Tie this in with the subtle shift in attitudes towards renting since the Millennium and less people jumping the on the bottom rung of the property ladder, this has driven rents and demand up in Banbury over the last few years. Yet (and it’s an important proviso) the type, location and demands of Banbury tenants has changed over that same time frame meaning you can’t just make money from buy to let as easily as falling off a log like you did in the early 2000’s.

If you are an existing landlord with us (or even another agent in Banbury) or someone thinking of becoming a first time Banbury landlord looking for advice and opinion and what (or not to buy in Banbury), drop me an email or phone call and let’s start a conversation - I don’t bite and I don’t do hard sell ... and maybe, just maybe, I could help you get better returns from your property portfolio

Thame and surrounding Village Market Report July 2019 – Tristan Batory

🏘️ Here is  Tristan Batory our  local proerty expert for Thame and surrounding villages with a very interesting update on local poreprty market in July 2019 🏘️

I hope you find the content of this report useful.👍

There are some great pointers as to how you can generate some interest on your property by maximising all aspects of marketing, which will help you achieve the best possible price for your home. 💰

Read the nationwide market report here :  https://issuu.com/fineandcountrypl/docs/10_fine_countrypremium_markets_-_na 

Tristan Batory | Associate 

Fine & Country Oxford 
267 Banbury Road, Summertown, Oxford, OX2 7HT 


E: tristan.batory@fineandcountry.com
T:   +44 (0) 1865 953243

M:  +44 (0) 7879 407697


www.fineandcountry.com

Banbury & Buckingham Market Update July 2019

Local property expert and director of Fine & Country, Oxfordshire, Terry Robinson talks about what is happening in the local market.

The barometer points to sunnier skies and settled weather in July, following torrential downpours of June. Across the UK housing market, clouds continue to swirl as consumer sentiment, if not economic fundamentals, continue to hold sway. This month will see the UK with a new prime minister, but when the fog surrounding brexit will clear, no one knows.

If you are currently on the market and have not yet found a buyer or if you are thinking of selling and would like Terry's advice on how he achieves the maximum price for his clients, please call him directly on 07736 937633

Click The Image For Full July Market Report or get it here : https://issuu.com/fineandcountrypl/docs/10_fine_countrypremium_markets_-_na 

Only 41.3% of Oxford Households are Eco-friendly

Improving the energy efficiency of Britain’s 27.2 million homes, which are responsible for more than a quarter of the country’s CO2 and other greenhouse gas emissions, is seen as key to tackling the issues of climate change, fuel poverty and our country’s energy security. This is particularly important as in June the Government announced they were going to make the country carbon neutral by 2050, meaning Britain’s homes need some enormous retro-fitting to meet these ambitious climate targets.

 Researchers at Nottingham Trent University said it would cost on average £17,000 per property to retrofit an average UK home to make it carbon neutral with renewable energy and insulation (if done en masse and not piece meal). That would cost the Country £462.4bn (interesting when the NHS costs £154bn per year). Now of course 22.7m homes are privately owned so that would be the responsibility of the owners, but if we look at publicly owned council housing, that would cost the Government in excess of £76.5bn - HS2 is ‘only’ £56bn!

 The benefits of making homes carbon neutral go further than saving the planet, as occupants would have much lower gas and electric bills (which total £31.824bn per year), warmer households and a much-lower strain on the NHS, which currently spends about £848m a year treating conditions that arise from cold housing. Also, local authorities would have to spend a lot less than the £5.2bn a year for ongoing property maintenance by the installation of extra insulation and renewable energy such as ground source heating, wind or solar panels.

 To improve efficiency ratings, last year the Government banned landlords from renting property with an energy performance rating of F and G (the lowest ratings), yet I don’t think there is an appetite to force private homeowners to do this work (although you never know in the future??). Homeowners would be unenthusiastic to take on the bother and cost of such building works, yet the Government could offer incentives and grants, which along with the funds saved on their energy bills could make the plan more appealing?

 So, what about eco credentials of the properties of Oxford homeowners and landlords?

 Every home that has been built, rented out or put on to the market in Oxford since 2007 has had to have an Energy Performance Certificate (E.P.C), giving it a rating between A and G (rather like those stickers you see on fridges and washing machines). A is highest rating (i.e. most efficient and greener) and G is the worst energy performance rating. So, looking at Oxford first, then comparing us to the rest of the UK, this is the result...

So, 41.3% of Oxford homes are in that eco-friendly A to C energy performance banding ratings, which is proportionally 11.34% higher than the national average.

So, what next? Well the Government will endeavour to make the green revolution as painless as possible with technology developments like LED light bulbs, for example, saving greenhouse gases without people noticing. In the future we might have hydrogen central heating instead of mains gas, all have solar panels for electricity, all triple glazed windows and even ground sourced heating ... sounds pie-in-the-sky? Well who would have thought some of the most wanted cars would be electric and hybrid 10 years ago, built by the likes of Tesla?

There is no doubt that the energy efficiency of a property will rise in the coming years as the cost of fuel and people’s opinion on going green changes. You don’t need to spend £17,000 to find out what you can do to make your property greener. Look at your E.P.C and it will tell you what small changes you can make to improve your Oxford home’s energy efficiency rating and ultimately save yourself money.

 If you want to find your E.P.C rating of your Oxford home, go to www.epcregsiter.com


Written By Joe Wright 10/07/2019

Joe Wright | Associate
E: joe.wright@fineandcountry.com
T: +44 (0)1865 953 247 | M: +44 (0)7825 164 163
Fine & Country: 267 Banbury Road, Summertown , Oxford, OX2 7HT

Only 44% of Banbury Households are Eco-friendly

Improving the energy efficiency of Britain’s 27.2 million homes, which are responsible for more than a quarter of the country’s CO2 and other greenhouse gas emissions, is seen as key to tackling the issues of climate change, fuel poverty and our country’s energy security. This is particularly important as in June the Government announced they were going to make the country carbon neutral by 2050, meaning Britain’s homes need some enormous retro-fitting to meet these ambitious climate targets.

 Researchers at Nottingham Trent University said it would cost on average £17,000 per property to retrofit an average UK home to make it carbon neutral with renewable energy and insulation (if done en masse and not piece meal). That would cost the Country £462.4bn (interesting when the NHS costs £154bn per year). Now of course 22.7m homes are privately owned so that would be the responsibility of the owners, but if we look at publicly owned council housing, that would cost the Government in excess of £76.5bn - HS2 is ‘only’ £56bn!

 The benefits of making homes carbon neutral go further than saving the planet, as occupants would have much lower gas and electric bills (which total £31.824bn per year), warmer households and a much-lower strain on the NHS, which currently spends about £848m a year treating conditions that arise from cold housing. Also, local authorities would have to spend a lot less than the £5.2bn a year for ongoing property maintenance by the installation of extra insulation and renewable energy such as ground source heating, wind or solar panels.

 To improve efficiency ratings, last year the Government banned landlords from renting property with an energy performance rating of F and G (the lowest ratings), yet I don’t think there is an appetite to force private homeowners to do this work (although you never know in the future??). Homeowners would be unenthusiastic to take on the bother and cost of such building works, yet the Government could offer incentives and grants, which along with the funds saved on their energy bills could make the plan more appealing?

So, what about eco credentials of the properties of Banbury homeowners and landlords?

 Every home that has been built, rented out or put on to the market in Banbury since 2007 has had to have an Energy Performance Certificate (E.P.C), giving it a rating between A and G (rather like those stickers you see on fridges and washing machines). A is highest rating (i.e. most efficient and greener) and G is the worst energy performance rating. So, looking at Banbury first, then comparing us to the rest of the UK, this is the result...

So, 44% of Banbury homes are in that eco-friendly A to C energy performance banding ratings, which is proportionally 5.67% higher than the national average.

So, what next? Well the Government will endeavour to make the green revolution as painless as possible with technology developments like LED light bulbs, for example, saving greenhouse gases without people noticing. In the future we might have hydrogen central heating instead of mains gas, all have solar panels for electricity, all triple glazed windows and even ground sourced heating ... sounds pie-in-the-sky? Well who would have thought some of the most wanted cars would be electric and hybrid 10 years ago, built by the likes of Tesla?

There is no doubt that the energy efficiency of a property will rise in the coming years as the cost of fuel and people’s opinion on going green changes. You don’t need to spend £17,000 to find out what you can do to make your property greener. Look at your E.P.C and it will tell you what small changes you can make to improve your Banbury home’s energy efficiency rating and ultimately save yourself money.

If you want to find your E.P.C rating of your Banbury home, go to www.epcregsiter.com

Written By : 

Christopher E Mobbs FNAEA CPEA | Property Expert
E: chris.mobbs@fineandcountry.com | banbury@fineandcountry.com
T: +44 (0)1295 239665 | M: +44 (0)7761 439927
Fine & Country Banbury: 1 South Bar Street, Banbury, OX16 9AA
www.fineandcountry.com

 Read My Reviews - https://www.allagents.co.uk/agent/chris-mobbs/21740/

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