Huddersfield Apartments are 18.6% more affordable than 10 years ago

My research shows that certain types of Huddersfield property are more affordable today than before the 2007 credit crunch.

Roll the clock back to 2007 just before the credit crunch hit which saw Huddersfield property values plummet like a lead balloon and the Huddersfield property market had reached a peak with the prices for Huddersfield property hitting the highest level they had ever reached.  Between 2008 and 2010, Huddersfield property values lay in the doldrums and only started to rise in 2011, albeit quite slowly to begin with.

Nevertheless, even though property values have now passed those 2007 peaks, my research indicates that Huddersfield property, especially flats/apartments, are now more affordable than they were before the 2008 credit crunch.

Back in 2007, the average value of a Huddersfield flat/apartment stood at £118,395 and today, it stands at £127,167, a rise of £8,772 or 7.4%.

However, between 2007 and today, we have experienced inflation (as measured by the Government’s Consumer Price Index) of 25.97% meaning that in real spending power terms Huddersfield apartments are 18.6% more affordable than in 2007. Looking at it another way, if the average Huddersfield apartment (valued at £118,395 in 2007) had risen by 25.97% inflation over those 10 years, today it would be worth £149,142 (instead of the current £127,167).

The point I’m trying to get across is that Huddersfield property is more affordable than many people think.  Huddersfield first time buyers can get on the ladder as 95% mortgages have been readily available to first-time buyers since 2010.

It really comes down to a choice and if Huddersfield first-time buyers can get over the hurdle of saving the 5% deposit for the mortgage on the property – they will be on to a winner, especially with these ultralow mortgage interest rates, a mortgage can be between 10% and 30% cheaper per month than the rental payments on the same house.

So why aren’t Huddersfield 20 somethings buying their own home?

Back in the 1960’s and 1970’s, renting was considered the poor man’s choice in Huddersfield (and the rest of the Country) a huge stigma was attached to renting. However, over the last 10 years as a country, we have done a complete U-turn in our attitude towards renting - meaning that many people find renting a better option and a lifestyle choice.

Saving the 5% deposit means going without many luxuries in life (such as holidays, every satellite movie and sports channel, socialising or the latest mobile phone – even if only in the short term) therefore instead of saving every last pound to put towards a mortgage deposit Huddersfield 20 somethings choose to rent.

There is no denying the simple fact that over the next 10 to 15 years, the people who choose to rent instead of buy in Huddersfield will continue to rise.

Therefore, everyone in Huddersfield has a responsibility to ensure that an adequate number of quality Huddersfield rental properties are safeguarded to meet those future demands. Interestingly, what I have noticed though over the last few years are the expectations of Huddersfield tenants on the finish and specification of their Huddersfield rental property.

I have perceived that in the past, what a tenant wanted from their Huddersfield rental property was moderately unassuming because renting a property was only a short-term choice to fill the gap before jumping on the property ladder. Before the millennium, wood chip wall paper and twenty-year-old kitchen and bathroom suites were considered the norm.

However, Huddersfield tenants’ expectations are becoming more discerning as each year goes by.  I have also noticed the length of time a tenant remains in their Huddersfield property is becoming longer (and this was backed up recently by stats from a Government Report), although I have noticed a tendency for many Huddersfield landlords not to keep the rental payments at the going market rates  - maybe a topic for a future article for my blog?

The bottom line is this … Huddersfield landlords will need to be more conscious of tenants needs and wants and consider their financial planning for future enhancements to their Huddersfield rental properties over the next five, ten and twenty years -  e.g. decorating, kitchen and bathroom suites etc etc ..

The present-day and future situation of the Huddersfield private rental property market is important, and I frequently liaise with Huddersfield buy-to-let investors looking to spread their Huddersfield rental-portfolios. I also enjoy meeting and working alongside Huddersfield first time landlords, to ensure they can navigate through the minefield of rental voids, the important balance of capital growth and yield and ensuring the property is returned back to you in the future in the best possible condition.

22.16% of Huddersfield and Kirklees is Built on ... Building Plot Dilemma or Not?

Well the fallout from the recent Budget is still continuing.  I was chatting to a couple of movers and shakers from the Huddersfield area the other day, when one said, “There isn’t enough land to build all these 300,000 houses Philip Hammond wants to build each year”.

...and if you read the Daily Mail, you would be forgiven for thinking the Country was at bursting point ... or is it?

It was 60 years ago the first satellite was launched (Sputnik). All the Superpowers have used them to take high definition pictures of each other for decades, but now satellites and their high-powered cameras are being used for more peaceful purposes. The European Environment Agency (EEA) have been taking high definition pictures of the UK from outer-space to give us a focused picture of what every corner of the Country really looks like … and the findings will come as a surprise.

As my blog readers know, I always like to ask the important questions relating to the Huddersfield property market. If you are a Huddersfield landlord or Huddersfield homeowner, this knowledge will enable you to make a more considered opinion on your direction and future in the Huddersfield property market. Like every aspect of all economic life, it’s all about supply and demand, because over the last twenty or so years, there has been an imbalance in the British (and Huddersfield) housing market, with demand outstripping supply, meaning the average value of a property in Kirklees has risen by 217.04%, taking an average value from £45,200 in 1995 to £143,300 today.

Using the information from the EEA and data crunched by Sheffield University with their Corine-Land Cover project, I posed them a few questions about the local area, interesting questions I would like to share with you …

1. What proportion of the whole of Kirklees is built on?

22.16%

That surprised you, didn’t it! In the study, land classified as ‘urban fabric’ defined has land which has between 50% and 100% of the land surface is built on, (meaning up to a half might be gardens or small parks, but the majority is built on).

2. How much land is intensively built on locally?

Of that amount mentioned above, how much of it is high-density urban fabric? (i.e. where 80% to 100% is built on – still leaving 20% for gardens)  0.19%  - again I bet that surprised you!

3. So how is the land used locally?

Sports Facilities                    1.73%

Industry                                 3.13%

Pastures                                 41.76%

...the rest being made up of various other minor types such as arable farmland and forests, etc.

Huddersfield and the surrounding areas are greener than you think! In fact, I read that property covers less of the UK than the land revealed when the tide goes out. The assumption that vast bands of our local area have been concreted over doesn't stand up to inspection. However, the effect of housing undoubtedly spreads beyond its actual footprint, in terms of noise, pollution and roads.

Now I am not suggesting for one second we concrete over every inch of the locality, but the bottom line is we, as a country, are growing at a quicker rate than the households we are building. I appreciate the emotional effect of housing is greater than other land use types because most of us spend the vast majority of our time surrounded by it. As Brits, we live our lives driving along roads, walking on footpaths and working and living in buildings meaning we tend, as a result, to considerably overemphasise how much of it there is.

The bottom line is Huddersfield people and the local authorities are going to have to put their weight into building more homes for people to live in. There is going to have to be some give and take on both sides, otherwise house prices will continue to rise exponentially in the future and Huddersfield youngster’s won’t be able to buy their own Huddersfield home, meaning Huddersfield rents and demand for private rented accommodation in Huddersfield can (and will) also grow exponentially. 

Huddersfield Property Market and Hammond’s Budget Promise to Build 300,000 more homes

I miss the good old days of George Osborne as Chancellor, with his hardhat and hi-vis jacket. He must have visited every new home building site in the UK with his trademark attire! For the last few years, the nearest Philip Hammond got to donning a ‘Bob the Builder’ outfit was at his grandchild’s birthday party. However, with what appears to be a change in focus by the Tories to ensure they get back in power in 2022, they appear to have fallen in love with house building again with the Chancellor’s promise to create 300,000 new households in a year.

Nationally, the number of new homes created has topped 217,344 in the last year, the highest since the financial crash of 2007/8. Looking closer to home: in total there were 983 ‘net additional dwellings’ in the last 12 months in the Kirklees Metropolitan Borough Council area, a decrease of 9% on the 2010 figure.

The figures show that 84% of this additional housing was down to new build properties. In total, there were 830 new dwellings built over the last year in Kirklees. In addition, there were 147 additional dwellings created from converting commercial or office buildings into residential property and a further 15 dwellings were added as a result of converting houses into flats.

While these all added to the total housing stock in the Kirklees area, there were 9 demolitions to take into account.

Net additional dwellings in Kirklees in the last 12 months
New build	Conversions	Change of use	Demolitions	Net Additions
830	15	147	-9	983

I was encouraged to see some of the new households in the Huddersfield area had come from a change of use. The planning laws were changed a few years back so that, in certain circumstances, owners of properties didn’t need planning permission to change office space in to residential use.

With the scarcity of building land available locally (or the builders being very slow to build on what they have, for fear of flooding the market), it was pleasing to see the number of developers that had reutilised vacant office space into residential homes in the local council area. Converting offices and shops to residential use will be vital in helping to solve the Huddersfield housing crisis especially, as you can see on the graph, that the level of building has hardly been spectacular over the last seven years!

Now we have had the autumn budget, Theresa May and Philip Hammond have set out their stall with housing as their key focus. I was glad to see the Government introducing a variety of changes to improve housing, including more funding for the supply side and an injection of urgency into the planning system.

The biggest question is, just where are the Government going to build all these new houses? Maybe a topic for a future article?

Back to the main point though and the focus on the housing market by the Tory’s is good news for all homeowners and buy to let landlords, as it will encourage more fluidity in the market in the longer term, sharing the wealth and benefits of homeownership for all. However, in the short term, demand still outstrips supply for homes and that will mean continued upward pressures on rents for tenants.