Property Values rise by 0.2% in Stamford
Property values in Stamford rose
by only 0.2% last quarter. This follows
several months of sluggish activity in the Stamford property market in the run
up to the General Election, putting the average price of a property in Stamford
at £274,100 - which is 3.8% higher than in March 2014.
Interestingly, over the last few
months the Council of Mortgage Lenders and estate agent trade bodies have
reported seeing a fall in mortgage lending and enquiries from prospective
homebuyers. This is important because it
comes amid an overall fall in housing market activity in Stamford. Data from the Land Registry said completed
house sales in Stamford in the 3 months to January 2015, (the most up to date
figures available) fell by 13.22%, compared to the same 3 month period up to
January 2014.
However, I believe that the
slowdown in the property sales in Stamford is supporting Stamford property values, as there is a shortage of
houses coming onto the market. Even
though in the whole of the first quarter of 2015, Stamford property value
increases may seem subdued when compared to 2014, let us remember, property
values are still rising well above the level of inflation.
As I have said many times before,
the population in Stamford is growing at a much higher rate than the number of
properties being built. This increasing
demand for a roof over people’s heads, which is outpacing the supply of new
houses being built in Stamford, is creating a severe imbalance in the Stamford
(in fact, in the whole of the UK’s) housing market. Thus making home ownership an ever
increasingly distant dream for many of Stamford’s potential 1st time
buyers.
In fact, I still maintain the
view that house prices are likely to rise by around 3-5% in Stamford in 2015,
ever taking into account this blip at the start of the year. The reason being is that the rise reflects
both strong economic conditions and steady market conditions with (and this is
the most important factor) very low numbers of properties on the Stamford
property market.
Many Buy-to-Let landlords know
that investing in the Stamford property market is a long-term strategy of 10,
20 or even 30 years. Governments come
and go, but unless South Kesteven District Council start to build hundreds of
new properties per year to make up for the shocking lack of supply, Stamfordians
will always want a roof over their head, and irrespective of whichever party is
in power, if there aren’t any council houses and they can’t (or are unable to
buy), a demand for rental properties will always remain strong.
As my existing Stamford landlords
will testify, (whether you manage your property yourself, or another local
agent manages your property), everyone is always made to feel welcome when they
pop in for a coffee to see us, to discuss anything to do with the Stamford
property market such as how the town compares with its closest town rivals for
example. I don’t hard sell, I just give
you my honest, straight talking opinion.
However, if you are too busy to pop into town, please just keep visiting this blog for advice,
intelligent commentary and analysis of the Stamford property market.
