Rutland House Prices Rise By More Than 6% In The Last 18 Months

 

 

Over the last month, the Rutland property market has seen some interesting movement in house prices, as property values in the Rutland County Council area rose by 2.3%, to leave annual price growth at 9%.  

 

 

 

 

These compare well to the national figures where property prices across the UK saw a monthly uplift of 0.42%, meaning the annual property values across the country are 8.3% higher, this is all despite the constraining factors of Stamp Duty changes in the spring and more recently Brexit.

Surprisingly, when one looks at the figures for the last 18 months, house prices are 6.1% higher.  Again, thought provoking when compared to the national average figure of 13.6% higher.

However, it gets more remarkable when we look at how the different sectors of the Rutland property market are performing.  Over the last 18 months, in the Rutland County Council area, the best performing type of property was the detached, which outperformed the area average by 0.42% whilst the worst performing type was the apartment, which under-performed the area average by 1.4%.

Now the difference doesn’t sound that much, but remember two things, this is only over 18 months and the gap of 1.8% (the difference between the detached at +0.42% and apartments at -1.4%) converts into a few thousand pounds disparity, when you consider the average price paid for a detached property in Rutland itself over the last 12 months was £364,300 and the average price paid for a Rutland apartment was £153,000 over the same time frame.

I know all Rutlanders, be they homeowners or landlords, will want to know how each of the property types have performed, so this is what has happened to property prices over the last 18 months in the area...

 

·         Overall Average          +6.1%

·         Detached                     +6.6%

·         Semi Detached            +6.5%

·         Terraced                     +5.3%

·         Apartments                 +4.6%

 

So what does all this mean to homeowners and landlords and what does the future hold? 

When I looked at the month-by-month figures for the area, you can quite clearly see there is a slight tempering of the Rutland property market over these last few months.  I have mentioned in previous articles that the number of properties on the market in Rutland has increased this summer, something that hasn’t happened since 2008.

 

Greater choice for buyers means, using simple supply and demand economics, that top prices won’t be achieved on every Rutland property.  You see, some of that growth in Rutland property values throughout early 2016 may have come about because of a surge in house purchase activity, an indirect result of the increase in stamp duty on second homes from April, thus providing a temporary boost to prices.

However, it may be possible the recent pattern of robust employment growth, growing real earnings and low borrowing costs will tilt the demand/supply seesaw in favour of sellers and exert upward pressure on prices once again in the quarters ahead.

So what of property values?  Assuming that everything goes well with Brexit, I believe in 12 months’ time we should see values in the order of 4% to 8% higher.

I like to keep a close eye on the local property market on a daily basis because it enables me to give the best advice and opinion. If you want to learn more about the Rutland and Stamford property market, feel free to pop in for a coffee at our office for a chat with me.

For professional advice on buying, selling, renting and managing your homes and property investments.

David Crooke
Owner & Managing Director

 

UPP PROPERTY - SALES & LETTING AGENTS
Understanding People & Property

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825