Monday, 11 February 2019

My Concerns About The Bo’ness Property Market


I am genuinely concerned about the Bo’ness property market, but in a way that might surprise you.

Zoopla announced that average ‘asking prices’ rose in the last six months by 0.8% in Bo’ness, leaving them 2.6% higher than a year ago.  

Looking at all the data on the Bo’ness property market, and putting aside the need for more houses to be built in the next decade to balance out the increase in population but not matched by a similar increase in housing being built, my research shows there is a widening gap between what property buyers want and what is available to buy. 

In a nutshell, many more buyers are looking for the smaller one and two bed properties (the typical semi detached and smaller terraced houses/apartments), whilst there is an over supply of the four and five bed properties, which are the typical large detached properties available. 

Demand for smaller properties comes from both first time buyers and the growing number of buy to let landlords, where it is more cost effective and efficient to buy smaller properties to let out compared to larger properties which tend to offer poorer returns. Also, landlords with larger loans (on those larger more expensive properties) will also be hit harder with the changes in the way tax is paid on buy to let investments that started being implemented from April 2017. 

I recently carried out some research on how various types of properties have performed in Bo’ness since the year 1999 and what struck me was just how different the various types of properties have performed over the last 20 years and what this means for our property market and for people trying to trade up from their starter home to their next home. In a nutshell, this mismatch of supply and demand isn’t a new phenomenon, it’s been happening under our noses for years! 


In the last 20 years, the average terraced house in Bo’ness has increased in value from £32,954 to £113,977, the average semi-detached house’s value has gone from £39,518 to £144,973 and the average detached house has risen in value from £86,447 to £259,403. Nothing seems amiss until you look at the percentage growth.  Average detached house price have from by 200.1%.  However, these have been outgrown significantly by semi-detached houses whose value has increased by 266.8% and terraced houses whose value has grown 245.9%.  This means that the gap between semi-detached/terraced houses and detached houses in percentage terms has narrowed enormously (this isn’t just a Bo’ness trend, it has happened all across the Country).

I am concerned because more semi-detached/terraces houses need to be built, not only in Bo’ness, but in Forth Valley and Scotland as a whole. In particular, there is specific need for more affordable starter homes for the growing demand from both tenants (and the landlords that will buy them) and first time buyers.

The government needs to face up to the fact that unless they can get the planners (to release more building land), the banks (to finance the building of house), the builders (to build houses) and themselves together to ensure long term plans can be made and implemented, this issue will continue to worsen.

It is estimated that the country needs 30,000 houses a year to be built to start to tackle the chronic housing shortage that we have. Last year, only 17,739 properties were built, the year before 16,270 and 14,890 in the year before that.

This means only one thing for Bo’ness’s landlords. Unless the Scottish Government start to rip up huge swathes of the Scottish countryside and build on acres and acres of green belt, demand will always exceed supply when it comes to property for the foreseeable future regardless of any short term fluctuations caused by the uncertainty of Brexit.

Therefore investment in the local Bo’ness property market as a buy to let investment could be the best move to make as stock market investments are possibly on the wane. Everyone is different and, trust me, there are many pitfalls in buy to let. You must take lots of advice and seek out the best opinion.

If you would like to explore how I can help you with your property investments, or should you require any advice about investing in the Bo’ness property market, wish to enquire about our Investment Analysis Reports, Property Sourcing, Residential Lettings or Property Management services, please do not hesitate to contact me on 01506 828096 or at 
robert@thekeyplace.co.uk.

Alternatively please feel free to pop in and see me at our offices at 6 Vicar Street, Falkirk for a chat, the coffee is always on.


#bo’ness #boness #property #buytolet #realestate #ownermanagedbusiness #retirement #retirementplanning #privaterentedsector #prs #firsttimebuyers #lettingagents #housebuilding #housingcompletions

No comments:

Post a comment