As a landlord, whenever you are looking at houses for sale in Hampshire, you could find varying prices throughout an area like Southampton. In this article, this data will be simplified so you can find all of the data on one, convenient page.
So, from the rental yield of Southampton to the success you may expect to get when submitting planning permission. Everything you need to know about house for sale in the UK and in Southampton will be revealed. Keep reading.
What are the people like in Southampton?
In Southampton, how educated are people in general?
In the city of Southampton, 27% of people have degrees. In general, as the number of people who are highly educated goes up, the more likely they are to have the ability to buy houses as their annual household income goes up too.
So you can see for yourself, the average income for the people of Southampton is £41,700. This generally goes up with the education level of the area. Additionally, looking at the difference between the proportion of people with degrees and the UK average for this statistic (22.6%) should give you an idea of the affluence and education of the city.
A higher education level can therefore tell you if the house prices are likely to be high as the higher income level often results in people buying a bigger, more valuable house.
Having said this, whale education level can be a good factor to go by, there are also things like the rental yields, the population growth and social grades scores that can impact the value of a house and whether it will go up in value as time goes on.
How deprived is the population of Southampton?
Most of the time, high deprivation levels signal that people cannot afford to sustain their living expenses. In Southampton, currently, 26% people fall into this category.
Measuring this statistic against the nationwide average of 33% should give you a pretty good idea of where the city lies in the scale of poverty in the area.
How much do people in Southampton earn?
While not always the case, the amount people earn can be associated with better schools in the area and perhaps a nicer environment to live in.
£41,700 is the average household income of the area. And the higher this figure is the more likely it is that there is a higher percentage of people with a social grade score in the A or B categories which is 21% for Southampton.
What does the population of Southampton look like?
In total, the number of people in Southampton is 181,024. This figure can be used to estimate the appreciation of the houses but it is also important you look at the population growth figure in order to make this more accurate.
Whether a large population benefits you as a landlord is dependent on what you want from a home. A large population is great if you have children who prefer the bustle of crowds in cities but there are also those who purposely want to buy somewhere rural.
You may also be able to find a balance of both where there are shops, restaurants and entertainment and also rural areas all within a short distance which may be the case ni Southampton, depending on where exactly you are.
How has Southampton changed in the past five years?
Five years provides enough time for a city to grow dramatically. It may be the case that the population grows or shrinks but the city of Southampton has changed by 3%. Read more here
It is also helpful to compare this data to a longer time period like 10 years like in the below subheading. If the population trend of growth or decline has been there for a longer period of time you’ll be able to tell if 3% is a recent change or not.
Click here to know more on the UK population trends.
In the last decade, what is the difference in population in Southampton?
9% has been the population growth change in the past 10 years.
Usually, this is more of a conservative figure compared to the five year change of a city.
Industrial changes can also be the reason for this shift but it could also be due to immigration or emigration. Bringing people in or out of the area.
The recent global pandemic has also shifted the number of people living in cities as people realise they can now work remotely. It may be that the people of a Southampton have seen a more desirable way of working, moving to make themselves more comfortable in their careers.
For example, the population of the South west of England has seen a massive increase in population because workers want to move there to benefit from the slightly better weather, lower house prices and also the rural area. Nonetheless, they can also benefit from travelling to the capital city of the UK, London.
What is the social grade score of Southampton?
Most of the time, the social grade score of a city is what it takes to determine what the economic levels are like as this score refers to what type of jobs the people of the area generally work as. So, from highly skilled, managerial roles, to the manual labour workers of the UK, how does Southampton compare?
At the highest end of the scale (A) jobs that are managerial administrative or professional are all lumped into this category. On the other hand, there is the lowest grade (E) where workers who are on benefits, state pensions or work casual jobs fall into.
In Southampton, the percentage of people who work in the two highest skilled categories of this scale (A and B) is 21%.
So you can compare this data, here is the estimated grouping of the social grades of the UK for the general population. Adding the two highest categories of A and B and comparing this percentage to the high social grade score which combines A and B should give you a good comparison.
| Social Score | Category | The proportion of the UK population (%) |
|---|---|---|
| A | Professional, managerial or administrative | 4 |
| B | Intermediate managerial or professional jobs | 23 |
| C1 | Supervisory, junior managerial or professional jobs | 29 |
| C2 | Skilled manual workers | 21 |
| D | Semi and unskilled manual workers | 15 |
| E | State pensioners, casual & lowest grade workers | 8 |
Southampton in the county of Hampshire is notable for its specific demographics and has individual characteristics.
For localised cities and the bigger areas of the UK there are wide variations in the demographics that shape an area so the same is also true for the wider region Southampton is located in; South East.
Below, these demographics are talked about in headings that explain how the city has grown, what the education levels are like in Southampton, what the social grade score of the city is like and if the green space matches the recommended levels people living in the UK should have.
What’s the crime rate in Southampton?
For every one thousand people living in Southampton, 178 commits crimes and are prosecuted. Coming to a conclusion as to whether all the other factors of your house purchase like the house price justify this figure when contrasting it with the UK average of 79.52 is something you should do as a homeowner.
It could be that the crime rate is higher than you expected but there it is worth the population growth, appreciation of the house and worth the relative price you are purchasing the house for.
Nonetheless, the crime rate of 178 is not a statistic that should just be ignored as you could have to pay more for things like home insurance and install additional security on your house if the rate is particularly high.
Either way, burglaries are not something you would want to encounter in a house. Whether that be a house you are living in or a house you are renting out to tenants.
In the city of Southampton, is there a lot of green space?
In the UK, there are a range of cities which have a lot of green space. In some cases, green space can get as high as 49% of outdoor land like in the city of Edinburgh. When specifically talking about Southampton, the city has 10.4 per 1000 residents.
This can be compared to an average of 1.7 acres of green space per 1000 residents which is the UK’s national average. It is up to you to decide how much you’ll let the amount of green space impact your buying decision in Southampton.
Invest in a house for sale that meets your demands
What parameters impact the final price of a house for sale in Southampton?
Here below is our list with the most important ones:
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House for sale affordability – check out the (see house affordability guide)
on the UK gov website to know more
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House Location – the actual location of a house for sale drastically changes the final price of a property
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Transports you can reach by foot – Commuting is part of our lives, especially in big cities, check it out before buying a house for sale.
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Number of bedrooms – Usually, the bigger the house for sale the more bedrooms it will have. For example, if you are a single person (or a couple) one bedroom will do.
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Energy Performance Certificate of the house for sale – Bad EPCs can result in thousands of pounds more in bills you will have to pay on an annual basis. Consider this when purchasing a new property.
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Internet connection – Having a quick internet connection is fundamental nowadays. Check the area of the house for sale to understand what the average internet speed is and see if it fits your needs
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Do you drive to the office? – If yes, ask about parking. Is it included in the house price?
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Special areas – Start by taking a look at the National Heritage list by the UK government. If a house listed for sale appears in the list, the future landlord won’t be able to invest in changes to the real estate asset.
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Houses for sale Conditions – When looking for houses for sale you should always consider the amount of time and money you will have to invest to complete the needed repairs, if any at all.
House for sale in the same UK region
You can assess the various houses for sale offered in the area by consulting this list of cities in South East, the same UK region as Southampton:
- Cuxton in South East
- Badgers-Mount in South East
- Borough-Green in South East
- Langney in South East
- Badlesmere in South East
You may also refer to our landing page specific to UK houses for sale, houses for sale in the UK
Professional advice for houses for sale in Southampton
Nowadays, there are so many properties on the real estate market that it can be difficult to decide which one is the best house for sale for you.
So, who can help you navigate the process of choosing a house for sale?
The number of professionals that offer real estate investors advice and assistance is broad and when it comes to dealing with houses for sale, the process can be complex.
Find here a list of those that can help when buying a house for sale:
- Moneylender – lends you the sum of money you need to buy the house for sale you are looking for
- Insurance agent – A firm that provides several insurances and protections for the house for sale that might become your future house
- Solicitor – A person or company that will sort out the legal work needed before buying a house for sale
- Civil engineer – Also called surveyor, he or she will provide you with an independent valuation of the house for sale you are willing to buy
- Mortgage advisor – Realistically, you will need a mortgage in order to afford to buy a house for sale. Mortgage advisors will guide you and propose the best mortgage deals based on your financial records
- EPC specialist – Especially nowadays, getting professional advice on the Energy Performance Certificate (EPC) of the house for sale you are considering buying is crucial
What is the final sale price of a house in Southampton?
For the city of Southampton, the average price a house sells for is £223,435. This value usually depends on the exact location of the house within Southampton as well as other factors like the population growth which is 9% over a ten-year period.
| Housing category | Total final sale price |
|---|---|
| Aerage sold price (detached) | £343,414 |
| Aerage sold price (semi-detached) | £266,592 |
| Aerage sold price (terraced) | £226,588 |
| Aerage sold price (flat) | £155,619 |
The above table puts this figure into perspective as you can see the various average sale prices of a house for the specific type of house you’re most interested in. This comparison is important because the type of house you’re considering to buy may be more or less in demand based on variations in supply and demand in the city of Southampton.
| Housing category | Sale price per square foot |
|---|---|
| Aerage sold price/sqft | £2,776 |
| Aerage sold price/sqft (new build) | £3,344 |
| Aerage sold price/sqft (old stock) | £2,694 |
Generalising the bottom table, the average value per square foot of a house for sale is £2,866. This value averages all of the types of houses for sale in Southampton. So, if you’re not sure what type of house you want specifically, you can still get an idea of the real estate market of Southampton.
Always consider average rental yield when searching for houses for sale in Southampton
In Southampton, how has the number of houses changed?
Growth in the area can be a good signal of a booming house market. However, too much growth could also have negative consequences on the capital appreciation of a house as time goes on.
Take a look at the table below for Southampton that shows the growth in recent years.
| 1 year | 3 years | 5 years | |
|---|---|---|---|
| Southampton growth rate | 2% | 12% | 15% |
High growth rates can signal an appreciating housing market, nonetheless, if there are too many houses being built, this could reduce demand for housing as the supply of houses for sale starts to catch up with the demand. Leading to stagnation or a decline in house pricing so understanding the growth in Southampton is important.
The figure of rental yield is commonly looked at by investors who wish to increase their income by investing in areas where rental yields of the houses for sale are higher. Usually, the higher the rental yield, the more attractive a house for sale is for an investor.
Nonetheless, there are also instances where an investor will go with a house with lower yields in order to benefit from the appreciation of a house too which is why it’s vital to look in to all the details of Southampton.
The data below shows the rental yield, rent turnover and the percentage of the money made on the sale of a house. The data is broken down into the county city is in (Hampshire) as well as the broader region; South East.
| Average Yield | Average Asking rent | Turnover (rental) | Turnover (sale) | |
|---|---|---|---|---|
| Southampton | 5.0% | £1,086 | 140% | 25.4% |
| Hampshire | 3.67% | £1,199 | 129.21% | 20.71% |
| South East | 3.58% | £1,301 | 127.50% | 16.69% |
Also, you can compare other data to the table above such as the number of houses sold per month in Southampton which is 154 and get a better understanding of the housing market.
This is great if you want to gauge if investors are actively looking for houses for sale in the area over other areas in the UK which may be an induction of how profitable Southampton is to invest in. Both in terms of rental yield and capital appreciation.
In Southampton, what is the asking price in general for a house for sale?
As you go ahead and make offers on a house for sale, it is sometimes best to know what other people are offering for the same type of house for sale so you know what to offer yourself to get a good deal. So you should know, the average asking price of Southampton is £262,442.
Even though the asking price is not what the eventual price the house is sold at, making a note of the averages for the city of Southampton is useful when negotiating and knowing what to expect for every type of house for sale.
Average price of houses for sale in Southampton
| Average asking price (1 bed) | £146,218 |
| Average asking price (2 bed) | £221,056 |
| Average asking price (3 bed) | £327,056 |
| Average asking price (4 bed) | £416,828 |
| Average asking price (5 bed) | no relevant data for this city |
After looking at this table about prices of houses for sale in Southampton, someone who is buying a home would have a detailed understanding of what kind of house for sale is available on the market that best suits the amount of money they are looking to invest. Also, using a more general figure like the average asking price per square foot of a property which is £1,302 will help them to have a more holistic understanding.
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