Ramsgate Property Owners Reap £6,937 Yearly Gains Since 2001

As we are now nicely into 2024, it's certain the Ramsgate housing market over the last 18 months has been a little more restrained than 2020, 2021 and early 2022, and I believe that the ‘steady as she goes’ outlook will continue into the rest of 2024 and beyond. 

As property ownership is a medium to long-term investment, it is important to see what has happened to Ramsgate house prices 

Since the start of the Millennium (Jan 2001), the average Ramsgate homeowner has seen their property’s value rise by an average of 194%.

This is important as house prices are a national obsession and tied into the health of the UK economy as a whole. Most of that gain has come from the overall growth in Ramsgate property values, while some of it will have been enhanced by extending, modernising or developing their Ramsgate home.

Taking a look at the different types of property in Ramsgate and the profit made by each type, it makes interesting reading:

• Overall Average For All Homes in Ramsgate. The average price of all homes in Ramsgate in 2001 was £84,053. Now it's 2024, it has risen to £243,615. This is a total profit of £159,562 (which is £6,937 profit per year per home or an annual growth of 8.4% per year).
• Apartments in Ramsgate. The average price of an apartment in Ramsgate in 2001 was £70,906. Now it's 2024, it has risen to £132,361. This is a total profit of £61,455 (which is £2,672 profit per year per home or an annual growth of 3.8% per year).
• Terraced/Town Houses in Ramsgate. The average price of a terraced/town house in Ramsgate in 2001 was £63,926. Now it's 2024, it has risen to £290,390. This is a total profit of £226,464 (which is £9,846 profit per year per home or an annual growth of 15.4% per year).
• Semi-Detached Homes in Ramsgate. The average price of a semi-detached home in Ramsgate in 2001 was £86,192. Now it's 2024, it has risen to £307,001. This is a total profit of £220,809 (which is £9,600 profit per year per home or an annual growth of 11.2% per year).
• Detached Homes in Ramsgate. The average price of a detached home in Ramsgate in 2001 was £125,054. Now it's 2024, it has risen to £237,129. This is a total profit of £112,075 (which is £4,873 profit per year per home or an annual growth of 3.9% per year).

However, we can’t forget there has been 79% inflation over those 23 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we take into account inflation since 2001, the true ‘spending power’ of that profit has been lower.

• Overall Average For All Homes in Ramsgate. The total 'real profit' (i.e., after inflation has been removed) for the average Ramsgate home is £88,794 for the last 23 years. This equates to £3,861 'real' profit per annum.  
• Ramsgate Apartments. The total 'real profit' (i.e., after inflation has been removed) for the average Ramsgate apartment is £34,199 for the last 23 years. This equates to £1,487 'real' profit per annum.
• Ramsgate Terraced/Town Houses. The total 'real profit' (i.e., after inflation has been removed) for the average Ramsgate terraced/town house is £126,023 for the last 23 years. This equates to £5,479 'real' profit per annum.  
• Ramsgate Semi-Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Ramsgate semi-detached home is £122,876 for the last 23 years. This equates to £5,342 'real' profit per annum. 
• Ramsgate Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Ramsgate detached home is £62,368 for the last 23 years. This equates to £2,712 'real' profit per annum. 

Thus, the annual profit for an average Ramsgate home, adjusted for inflation, stands at £3,861.

I wanted to illustrate that despite the 2008/09 Credit Crunch property market crash, which saw Ramsgate property values plummet by 15% to 20% over 18 months, homeowners in Ramsgate have still fared better over the long term than those renting.

Looking ahead, a common question I get asked is about the future trajectory of the Ramsgate property market.

The primary influence on maintaining house price growth in Ramsgate over the medium to long term will be the construction of new homes locally and nationally. Although we have yet to get the figures for 2023, government sources indicate that the number of new households is expected to be between 210,000 and 220,000. Considering the annual need is for 300,000 new households to meet demands arising from factors such as immigration, increased life expectancy, higher divorce rates, and later cohabitation, it’s clear that demand will continue to outstrip supply unless the government heavily invests in building council houses. 

This can only be good news for Ramsgate homeowners.

What about Ramsgate landlords, though?

Even though the number of landlords liquidating their property portfolios has increased in the last couple of years and the number of landlords buying is lower than in the 2000s and 2010s, there is still net growth in the size of the private rented sector each year. This is all despite facing higher taxes. The simple fact is many Ramsgate landlords remain keen on expanding their portfolios in the long term. 

The younger generation in Ramsgate views renting as a choice that offers flexibility and alternatives that homeownership does not provide. This means that demand for rentals will keep growing, allowing landlords to enjoy rising rents and capital appreciation. However, Ramsgate buy-to-let landlords must adopt more thoughtful strategies to maintain profitable returns from their investments.

As a Ramsgate buy-to-let landlord, the question for you is how to ensure this growth continues.

Since the 1990s, generating profits from buy-to-let property investments was straightforward. Moving forward, with changes in the tax laws and the balance of power, achieving similar returns will be more effortful. Over the past decade, I've observed the evolution of agents from mere rent collectors to strategic portfolio managers. I, along with a select few agents in Ramsgate, am adept at providing comprehensive, strategic portfolio leadership. This service offers a structured overview of your investment goals across short, medium and long-term horizons, focusing on your expected returns, yields and capital growth. If you seek such advice, feel free to contact your current agent or me directly at no cost or obligation.

About Cooke & Co

Cooke & Co, a liked and respected estate agency trading since 1992, is conveniently situated in the picturesque seaside district of Thanet. We proudly operate from our local offices in the region's primary towns, namely Margate, Broadstairs, and Ramsgate. Additionally, our extensive reach encompasses the charming areas of Westbrook, Westgate, Birchington, Monkton, Manston, and Minster. Our presence in these diverse locales enables us to offer an enriched understanding and comprehensive service to the property market in these prime coastal towns and villages.

Contact our offices at the following numbers:

• Margate Office/Area: (01843) 231833
• Ramsgate Office/Area: (01843) 851322
• Broadstairs Office/Area: (01843) 600911

Visit our main website at www.cookeandco.com or contact us via email at enquiry@cookeandco.com. If you would like a free instant valuation of your home, then visit our free instant valuation site.