Property Values rise by 0.2% in Stamford

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 1^st 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.