Homeowners in The Heatons and buy-to-let landlords in SK4 should be pleased to know that prices have risen recently.
Our latest analysis of The Heatons property market shows that month-on-month, SK4 house prices have increased by 2.2%, whilst the year-on-year figures showed that house prices in SK4 have increased by 11.7% in the year, taking the average house price in The Heatons area to £269,900.
It gets even more interesting when we look at the last few months of 2015 and see the patterns that seem to be emerging.
• December 2015 – a rise of 2.2%
• November 2015 – a fall of 1.7%
• October 2015 – a fall of 1%
• September 2015 – a fall of 0.2%
The lack of new building developments has been the biggest factor contributing to the SK4 property values being 21.2% higher compared to 2009, and an eye watering 285.8% higher than in 1995.
Until the Government addresses this issue nationally, and allows more properties to be built, things will continue to get worse. The UK population grows at just under 500,000 people a year, whilst the country is only building 152,400 properties a year – no wonder demand is outstripping supply.
We firmly believe the property market in SK4 (and the country as a whole) is changing its attitude towards homeownership, which in turn will have major ramifications for the homeowners and buy-to-let landlords of SK4 alike. Back in the late 20th century, getting on the property ladder was everything. However, since the late 1990’s, we as a country (in particular, the younger generation of would-be homeowners) have slowly started to change their attitude to homeownership. We are moving to a more European model, where people choose to rent in their 20’s and 30’s (meaning they can move freely and not be tied to a property), then inherit money in their 50’s when their property owning parents pass away, allowing them to buy property themselves.
Some of the highest levels of home ownership are in Romania at 96.1%, Hungary at 88.2% and Latvia at 80.9% (hardly European economic powerhouses). In Western Europe, Spain has homeownership levels at 78.8% and Greece has 74.0% (and we know the economic woes of these countries well). At the other end of the scale, whilst we in the UK stand at 64.8% homeownership (and interestingly in The Heatons is 71.9%), in Europe’s powerhouses, only 52.5% of Germans and 44.0% of Swiss people are homeowners.
In conclusion, falling homeownership and rising levels of renting mean this is great news for the 10,900 homeowners in SK4 and the landlords of the 2,400 private rental properties in SK4. The value of SK4 properties will remain strong, due to this lack of supply and good economic conditions whilst, it can clearly be seen, the demand for SK4 buy-to-let properties will continue to grow (which in turn will further bolster overall SK4 property values) as the younger generation choose to rent – meaning those who need to invest – may want to consider investing in SK4 bricks and mortar.
If you want a chat about The Heatons property market or about your property buying or selling needs – next time you are passing the office, pop in for an informal chat or if you don’t get down to the village that often, pick up the phone – we look forward to hearing from you!