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What Drives Hastings

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I am a resident of St.Leonards with a general interest in property. Having watched the market for fifteen years, I think I have an idea of what drives Hastings property values.

First I should say I believe Hastings offers good value compared to the rest of the South East. Land Registry figures confirm this with Hastings 34% lower than the average for the South East and 20% lower than England/Wales. The reason for this ‘good value’ is, unsurprisingly, poor wages and transport links little better than some third world countries. London commuters play a large part in inflating the market but poor communications will go some way to countering this effect until a motorway is built or the rail link upgraded. Don’t hold your breath waiting for either!

Wages are worth better examination because it reveals an interesting aspect of the housing market that is largely ignored. Hastings Borough Council website states the average wage in 2004 was just over £20000. The average property value was £150.395. That’s 7.5 times earnings and massively higher than the historic figure of 3.5. Ok, I know many purchasers will be couples or families with joint incomes so let’s make that figure £30000. That’s still 5 times earnings and that’s still a big problem. If you are young, single and earning a realistic wage for the area, around £12 - £18000, you may just be able to afford the cheapest one bed flat available. For most in this group home ownership will remain a dream. Without an army of first-time buyers entering the market it must become unsustainable. When the correction happens is the subject of endless speculation, not least by this web site. One thing I can tell you is the housing market tends to peak or bottem in 10 - 15 year cycles. That would suggest we are currently at a peak and the only way is down. It’s anyone’s guess where it will go but no market in a capitalist economy has risen forever. Study the charts folks, you could just get a lot more value for you’re hard earned cash than you believed possible.

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I am soon to become a resident of St.Leonards,having got a discount of 8% housing is cheap in hastings indeed the whole of the coast from there to margate.we lived in the west country before which is 2/3 hours drive to the M25. prices there now are the same as london [we live in london at the moment] so traveling distance/costs are not part of the answer. hastings or anyother seaside town is run down since the hoilday maker left for spain. I believe Hastings offers good value compared to the rest of the South its one of the few places which you can still buy a house which needs work and you can add value by improvement .as for infrastructure give it time it will come.

as for the crash well london prices and sales seem to march on but in the last few weeks it has slowed up used to see houses sold in days now its a few weeks to sell.but it will in the end.

Will the market fall---- yes but now long will it take? if today marks the start it will take 4 years? to drop 30%? wages have to inprove. inflation must increase to kill off the debt.its just a slow game. we have only been looking at houses which are in the hands of the bank [lots at the mo] at the moment agents are selling for them if it stops dead auctions will start filling up with them.so what do i see happening -- things will slow up money will get tight but people will not lower their asking price because they are in to much debt they will just sit it out for the next 10 years

as for prices had the house valued------- if it was in brighton would be worth 600k more can you work that out?

Edited by ROYCE

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  • 332 Brexit, House prices and Summer 2020

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