Looking back at the newspapers and magazines published in this first month of 2018,
it seemed popular to predict the future
of the British housing market. Which is all very well and good, but what does that mean to us here in Stamford? Well, here are my thoughts
on The Stamford Property Market.
With the average 5-year fixed rate mortgage at 1.98% (down from
3.47% in 2014) and 2-year fixed rate at 1.47% (down from 2.37% in 2014),
mortgage interest rates offered by lenders are at an all-time low (even with
the slight increase on the Bank of England base rate a few months ago). Added
to this, last year Stamford had a low unemployment rate of 3.4% which
contributed to maintaining a decent level demand for property (interestingly – an impressive 503 Stamford
properties were sold in last 12 months).
Whilst finally, the number of properties for sale in the town has
remained limited, thus providing support for Stamford house prices, meaning Stamford
Property Values are 5.8% higher than a year ago.
However, moving into 2018 there will be greater pressures on
incomes as inflation starts to eat into real wage growth, which will wield a snowballing
strain on consumer confidence. Interestingly,
information from ‘Rightmove’ suggested over a third of property listed in
October and November had their asking prices reduced - the
highest percentage of asking price reductions in the same time frame over 5
years. Still, a lot of that could have been house-sellers being overly
optimistic with their initial pricing.
In terms of what will happen to local property values in
the next 12 months a lot will be contingent
on the type of Brexit we have and the impact on the whole of the UK economy. There
will be much discussion surrounding the central London property market in the
coming year, and if the banking and finance sectors are negatively affected
with a poor Brexit deal then the London market is likely to see more of an
impact.
Nevertheless, local homeowners and landlords should be aware of
what happens in the rollercoaster housing market of central London, but not
panic if prices do drop suddenly there in 2018. Over the last 8 years, the central
London property saw house prices grow by 89.6% in those last 8 years, whilst in
Stamford, they only rose by 30.2%). So, we might see a heavy correction in the
capital, whilst more locally, something a little more subdued.
Hindsight is always better than foresight and predicting
anything economic is all well and good when you know what is around the corner.
At least we have the Brexit divorce settlement sorted and, as the UK economy
and the UK housing market are intertwined, it all depends on how we deal as a country
with the Brexit issue.
Oh, and house prices in Stamford over the next 12 months?
I
believe they will end up between 0.2% lower and 1.4% higher, although it will
probably be a bumpy ride to get to those sorts of figures.
If you have a property in the Stamford area to sell or rent, and would like a valuation please contact me, and I will be happy to help.
David Crooke
MD & Owner
UPP Property, Sales & Lettings 01780 484 554
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