Values
of apartments in Stamford have increased by 4.8% over the past year, which is
proportionally 78% more than the Stamford average rise of 2.69%.
The last time flats/apartments in Stamford outperformed all the other types of property, by such a gulf, was back in the spring of 2003.
The last time flats/apartments in Stamford outperformed all the other types of property, by such a gulf, was back in the spring of 2003.
For comparison, the other property types
performed as follows:
·
Detached homes rose by 2.6%
·
Semi-Detached homes rose by 2.57%
·
Terraced/Town Houses rose by 2.39%
This
moderately increasing rate of property value growth is opportune – but no one
should confuse it with a strong and vigorously healthy Stamford property
market. Instead, it is somewhat of an
indicator of the long-lasting lack of property on the market.
In fact, I have spoken about the lack of homes
for sale in Stamford on a number of occasions in my Stamford Property Blog and
whilst it isn’t as bad as it was 12 months ago, choice remains limited for
buyers.
The
average property value in Stamford
now
stands at £308,500
When
split down into property types:
·
Stamford Apartments at £166,500
·
Stamford Detached at £428,300
·
Stamford Semi-Detached at £237,500
·
Stamford Terraced/Town House at £251,800
When I scrutinised the figures for
the rest of the UK, it appears that apartments are pacemakers in the clear
majority of the country.
Of the 379 local authority areas in the UK, the value of apartments is rising faster than detached, semi-detached and terraced houses in 320 of them.
Of the 379 local authority areas in the UK, the value of apartments is rising faster than detached, semi-detached and terraced houses in 320 of them.
So,
should Stamford apartment owners be getting out the Champagne? Well, I would keep it on ice for now, as the
Land Registry figures are notorious for short term fluctuations.
It’s
hard to have faith in the fact that Stamford house values rose rapidly last
month given that, in the last 6 months, the Land Registry has frequently made
downward revisions to their first published House Price Index figures. Thankfully, the bigger picture from the
Council of Mortgage Lenders (CML) stated that home buying activity last month
was up 2%, over the same month in 2016. The CML stated first time buyer’s levels of
affordability was being squeezed and that the average amount borrowed by those first-time
buyers dropped slightly last month, but the overall amount borrowed (by all
buyers) was an impressive 12% higher than the same month in 2016.
So,
what next for the Stamford Property market?
I believe the uplift in the values
of apartments is a short-term blip. The real issue is with the way wage growth
might not keep up with inflation as the effects of 2016 exchange rate sucks in
inflation (meaning real wage growth stagnates). This will mean buyer demand
growth will be curtailed and with property values already so full, I believe a
renewed hastening in house price growth is unlikely.
Personally,
I foresee a return to the housing market we saw in the mid 1990’s, Steady
demand, steady supply – nothing silly when it comes to house price growth. Therefore,
I believe, with what is happening around us – this isn’t a bad thing at all.
If
you have a Stamford apartment and would it valued for either sales or
rental purposes, please contact me:
Owner & Managing Director
01572 725 825
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