The property market in Bath seems to be reflecting that of most of the rest of the country with an overall slight rise over the whole of 2009, with falls in the early months being offset by rises in the later month.

There was a flurry of last minute activity in December as buyers sought to get in under the wire before stamp duty returned to properties in the 125,000 to 175000 price bracket, as well as taking final advantage of the 15% VAT rate before it returned to the ‘normal’ (!) 17.5% rate in January 2010.

This flurry in activity follows reports from local agents that towards the end of 2009 the commercial property market also started to show real signs of recovery. Property consultant King Sturge said the number of deals in the city, during November combined with an overall increase in the level of enquiries, suggest that confidence is increasing. Victoria Bayley of King Sturge said: “We have been encouraged by the general level of enquiries.”

This positive view of the market is reflected in the return to the market of builders including Melksham-based Ashford Homes who will be building five two-bedroomed maisonettes, a two-bedroomed townhouse and eight two-bedroomed flats on the site of a derelict convenience store in the new year.

David Halewood, partner at selling agent Colston & Colston, said: ” This is a clear indication that the development market is moving again.

“I believe this is one of the first and certainly one of the biggest sales of an apartment scheme in the region since the downturn.

“Bath has not suffered as badly as other areas and we hope this will give confidence to other developers who have withdrawn from the market.

“We are finding that a number of the volume housebuilders are now actively seeking land having re-secured their funding sources after a period of turmoil.”

Bath Building Society
The city’s own Bath Building Society has always taken a cautious approach to mortgage lending and this has proved to be a wise choice in the difficult trading conditions in the property market over the last two years.

Looking forward however the society said it had “an optimistic but cautious” view of the future.

“Diversification into property letting has also been helpful as the rental market has held up relatively well in comparison with the house purchase market.”

Property Prices

Across the UK, the Nationwide house price survey revealed that the average change in property prices in 2009 was a 3.4 per cent rise, with the average figure for the south west 3.8 per cent.

House prices rose in all regions except Northern Ireland during the fourth quarter of the year, with southern regions continuing to experience stronger growth than northern areas, and London seeing the biggest increases.

Wiltshire saw a three per cent rise in average prices, with a seven per cent rise in South Gloucestershire.

The Million Pound property

Following consistent price rises over the last 30 years, more than 200 houses worth more than £1 million have been sold in the Bath area in the last 14 years.

The BA postcode zone was the 31st busiest out of the country’s 104 such regions when it came to property deals at the higher end of the market, according to a survey by HSBC.

HSBC’s analysis of Land Registry figures also revealed that the average house being sold in the postcode zone rose in value from £65,432 in 1995 to £206,889 this year – an increase of 216 per cent.

There were a total of 224 £1 million-plus sales over the 14 years.

In Bath, Savills associate director Luke Brady said the £1 million-plus market was looking healthy.

“That market is the strongest it has been since the height of the market which is put at autumn 2007,” he said.

He said overseas and London investors had returned to the Bath property scene.

“It’s an awful lot easier selling a £1 million-plus property in November 2009 than it was in November 2008.”

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