Shipston On Stour Warwickshire

[ShipstonOnStour]

Let me tell you about how crazy prices are in my town. It's a small market town in South Warwickshire. As with other similar towns, the prices have sky-rocketed. It's not due to a massize influx of workers from Eastern Europe as there are none. It's not due to a massive shortage of houses as there are plenty. It's not due to a lack of space, because there's plenty of that to go around. And I don't think we've discovered gold in The River Stour.

In the last 12 months, we've seen house prices falter in the UK. But in Shipston-on-Stour, we've had 3 massive issues effecting the town. Firstly, the town lost its largest employer, IMI Norgren as the jobs were moved to Eastern Europe. Now, factory workers have to travel at least 15 miles to go to the nearest town where there are other factories; Banbury, Evesham or Leamington Spa.

Then, we were hit by the summer floods. Shipston made national news after the floods devestated the town. Even the town councillor is still not back in his house. The Chinese restaurant is still closed and the towns only petrol station decided that the flood damage was too much and they closed down.

The town has hit the headlines again this week. You may have seen that next to Tessa Jowell's house, a new gypsy site set up with over 60 people in what appears to be a permanent site. Now, I'm not making any remarks about gypsies but it's been known that when similar developments occur, property prices in the area go up.

Then today, a flat has gone on the market. It's next to a busy main road, has no parking. It's 2 bedrooms (really 1 and a half) and is close to the river which flooded last year...the flat is actually is a road called River Way. And it went on the market for over £160,000.

Are Estate Agents completely oblivious to the reality of what is called "market conditions"?

[juvenal]

Let me tell you about how crazy prices are in my town. It's a small market town in South Warwickshire. As with other similar towns, the prices have sky-rocketed. It's not due to a massize influx of workers from Eastern Europe as there are none. It's not due to a massive shortage of houses as there are plenty. It's not due to a lack of space, because there's plenty of that to go around. And I don't think we've discovered gold in The River Stour.

In the last 12 months, we've seen house prices falter in the UK. But in Shipston-on-Stour, we've had 3 massive issues effecting the town. Firstly, the town lost its largest employer, IMI Norgren as the jobs were moved to Eastern Europe. Now, factory workers have to travel at least 15 miles to go to the nearest town where there are other factories; Banbury, Evesham or Leamington Spa.

Then, we were hit by the summer floods. Shipston made national news after the floods devestated the town. Even the town councillor is still not back in his house. The Chinese restaurant is still closed and the towns only petrol station decided that the flood damage was too much and they closed down.

The town has hit the headlines again this week. You may have seen that next to Tessa Jowell's house, a new gypsy site set up with over 60 people in what appears to be a permanent site. Now, I'm not making any remarks about gypsies but it's been known that when similar developments occur, property prices in the area go up.

Then today, a flat has gone on the market. It's next to a busy main road, has no parking. It's 2 bedrooms (really 1 and a half) and is close to the river which flooded last year...the flat is actually is a road called River Way. And it went on the market for over £160,000.

Are Estate Agents completely oblivious to the reality of what is called "market conditions"?

Have a look at the price in six weeks time and report back, please. There are still some idiots in denial out there.....

[Tyler]

Now, I'm not making any remarks about gypsies but it's been known that when similar developments occur, property prices in the area go up.

Either you mean property prices go down or you've been to some pretty bad areas if gypsies moving in raises the tone of an area!

[scooby7346]

I know S-on-S quite well (or at least the surrounding area). I wish I owned a house and some land around there. If the property was big enough I'd build me an additional house on the site. If not I would build the biggest extension that I could manage.

Then see what the Planning Committee in Warwickshire County Council have to say about it. (actually I suspect that it is Stratford-upon-Avon District Council Planning Dept.)

When it got nasty I would employ the services of the "Romany" community ensconced by the side of the Fosse to represent me.

I've got Human Rights too.

[ShipstonOnStour]

Tyler

You are right. I meant to say that the house prices would go down rather than up with our new romany guests. My point is that the estate agents have been so used to prices going up over the past decade or so, that their valuations know look at what they would have charged last year and add on 10%.

If you're in your right mind and you look at Shipston-On-Stour against other local towns, which would you know choose? Would you choose the one that's at a massive flood risk, where there are no jobs and a huge gypsy site or somewhere without these issues? And if this is glaringly obvious to everyone, why do the asking prices pitched by estate agents not going down. Actual sale prices are going down but asking prices are not...and are in fact going up. It's all crazy.

[ShipstonOnStour]

Just a quick update on this. Firstly, Tessa Jowell's £1million mansion next to the gypsy site was sold STC with the contract due to be signed today bu the owners have pulled out of the deal at the last minute.

The flat which was for sale at £160K was on the market last year for £140K and had no viewings. Since then, the town is a proven major flood risk, has no jobs and has a large gyspy site so I'm sure the £160K price tag is ridiculous.

In small towns around the country, its flats which are really suffering. Those of us who remember the last creash will remember this. Flats are typically bought by people as their "first step on the ladder". When house prices are unaffordable, then flat prices go up. When house prices go down, very few people want flats. This is true in cities but in small towns and more rural settings, it's even more true. Who would pay £160K for a flat when a 2 bedroom house is £140K? The people who can afford £140K own a house already. Families don't want flats and older people don't want flats.

[didntbuytolet]

Just a quick update on this. Firstly, Tessa Jowell's £1million mansion next to the gypsy site was sold STC with the contract due to be signed today bu the owners have pulled out of the deal at the last minute.

The flat which was for sale at £160K was on the market last year for £140K and had no viewings. Since then, the town is a proven major flood risk, has no jobs and has a large gyspy site so I'm sure the £160K price tag is ridiculous.

In small towns around the country, its flats which are really suffering. Those of us who remember the last creash will remember this. Flats are typically bought by people as their "first step on the ladder". When house prices are unaffordable, then flat prices go up. When house prices go down, very few people want flats. This is true in cities but in small towns and more rural settings, it's even more true. Who would pay £160K for a flat when a 2 bedroom house is £140K? The people who can afford £140K own a house already. Families don't want flats and older people don't want flats.

I don't know the town _that_ well but S on S is hardly shitsville is it. Its very nice indeed, compared say to Banbury locally. Now when you compare it to say Slough, Rochdale, or Aberdare, its quite posh AND the surrounding area is lovely. Look at the prices in parts of Banbury - 200k for a nasty ex council terrace on one of the worst council estates in Britain...

[MichaelJohnson1]

Shipston-On-Stour is quite posh???? When you read the estate agents view of it, yes but it's not true and it's not true of most small towns in rural areas which are even more over-priced in today's market than larger towns.

I know an estate agent in the town and he says that nothing is moving there at all. People have moved there from places like Leamington Spa, Banbury and Stratford-Upon-Avon because it was cheaper to live. These people are now commuting back to the towns they are from to work. There is no work in towns like Shipston and the only reason houses have been built there is to accommodate people from other more expensive towns. But with oil prices at sky-high prices, it's now cheaper to move back to the towns they are from and save the money on petrol. Cheap oil is a thing of the past and this government's ignorance that cheap abundant oil was here to stay is what has fuelled massive expansion to small rural towns with no infrastructure to back it up. It's wrong to compare Shipston with towns like Banbury. There are still jobs there which is why the town has been inundated with Polish people. These are the same Polish people who have fuelled the HPI caused by BTL. There are reasons why house prices rocketed in towns like Banbury...there are no reasons why prices rocketed in towns like Shipston.

Shipston is not different to small towns around the country. The only difference is that with a new gypsy site which will probably become permanent, the loss of its major employer and the fact it's massively prone to floods means that it will be one of the first of these types of towns to be hit with massive price falls. Other towns without these problems will follow but who would want to move to Shipston now?

[MichaelJohnson1]

I had to laugh after reading this post again. The local Midweek newspaper has the houses for sale from The Halifax. Every single house had "new price" written on it. Unlike Stratford where I live where there were none with a new price. I pity you guys in Shipston.....by the time the permanent gypsy site is made official, house prices will be in the gutter.

[didntbuytolet]

Shipston-On-Stour is quite posh???? When you read the estate agents view of it, yes but it's not true and it's not true of most small towns in rural areas which are even more over-priced in today's market than larger towns.

.. There are reasons why house prices rocketed in towns like Banbury...there are no reasons why prices rocketed in towns like Shipston.

It is quite posh, maybe not compared to Stratford, but compared to the majority of small towns in Britain, it is very nice, and compared to the shitholes I mentioned its great. I looked for the gypsy encampment when I drove through the other day - didn't see it. (not to say its not there, just that it wasn't obvious to me on passing through)

[scottow]

It is quite posh, maybe not compared to Stratford, but compared to the majority of small towns in Britain, it is very nice, and compared to the shitholes I mentioned its great. I looked for the gypsy encampment when I drove through the other day - didn't see it. (not to say its not there, just that it wasn't obvious to me on passing through)

i don't think your town will be as affected as towns in lincolnshire and norfolk - arent you not far from oxford?

[MichaelJohnson1]

i don't think your town will be as affected as towns in lincolnshire and norfolk - arent you not far from oxford?

Warwickshire is one of the counties due for a largest fall and rural Warwickshire is on for a particular downturn. The last Land Regsitry figures showed Wariwkshire down 6.4% compared with Norfol down 2.0%. The problem with Warwickshire is that prices exploded for no reasons. Worse still, the volume of house sales are down 70% in the first 3 months compared to last year.

[Stop The Ride]

I've been tracking 15 properties on Rightmove since our STR in April (kind of accidental STR - we pulled out of our purchase from a BTLer at the last minute after seeing the -5% MoM figures from Halifax for West Midlands). All properties are in Warwick and Leamington Spa and they are all properties that were on our long list - handy to track the kind of property I'm intereseted in buying rather than just an average - not very scientific but tells me what I want to know. They're all Victorian (or similar) 3 bed terraces in the 250k region. A couple were going to SSTC. A couple have gone down in asking price over the weeks by 10k, but I wasn't seeing price drops. But today, I had a look, and overnight, the following of the 15 had seen asking price reductions:

267950 to 242000 (and change of EA)

236950 to 229950 (was on for 25k when I was looking)

279950 to 249950

222500 to 199950

They're all different EAs as well. Hoping that the seller's are starting to break, but I suspect they're just chasing the market down. I won't be going near anything for a good while, but it should be fun to watch!

[MichaelJohnson1]

To my surprise, the market seems to have picked up again in Shipston-On-Stour. There were a couple of months when houses weren't selling and there seems to have been a drop of 5-8% in actual sales prices and it seems to have settled around that. The gypsy site on the edge of town is actually no impact on the town and the people who are buying in South Warwickshire seem to be retired people as it's a quiet part of the country. I'm gutted as I'd hoped for 30% drops so I could finally buy somewhere bigger than a shoebox.