Well, hasn’t 2016 been eventful? The up’s and down’s of Brexit, Queen Elizabeth’s 90th birthday celebrations, Andy Murray winning Wimbledon and SPOTY, Donald Trump’s controversial election, Bake Off moving to Channel 4 and something close to the hearts of every buy-to-let landlord and homeowner in Stamford - the local property market.
So, let’s look at the headlines…
In the last month, Stamford property values dropped by just 0.8%, leaving them, year on year 7.7% higher. Whilst interestingly, Stamford asking prices are down 1.3% month on month. All 3 statistics go to show the Stamford property market has recovered well after the summer lull, which was worsened by the uncertainty surrounding the EU vote back in June. Irrespective of all the issues, the average value of a Stamford home now stands at £324,700.
So, let’s look at the headlines…
In the last month, Stamford property values dropped by just 0.8%, leaving them, year on year 7.7% higher. Whilst interestingly, Stamford asking prices are down 1.3% month on month. All 3 statistics go to show the Stamford property market has recovered well after the summer lull, which was worsened by the uncertainty surrounding the EU vote back in June. Irrespective of all the issues, the average value of a Stamford home now stands at £324,700.
Generally, Stamford asking prices continue to hold up well, as asking prices are 4.7% higher year on year. At this time of year asking prices tend to drop in the run up to Christmas and locally they have dropped by 1.3% this month (November 2016), although this still compares well with last year’s drop in Stamford’s asking prices, as we saw asking prices drop by 0.6% in November 2015.
Now it’s true to say, after chatting with fellow property professionals in Stamford, all of us have seen the number of property sales fall slightly, suggesting a slowing market, but it is very early days and it could just be the time of year. Also, the numbers are limited, so it’s interesting to take note from a recent survey by the Royal Institution of Chartered Surveyors, stating new buyer enquiries and new instructions are falling at the same rate, suggesting that there will not be a downward pressure on property values.
Looking at the figures for the UK (as we can’t just look at Stamford in isolation), property values are generally rising slower than a few years ago, but on a positive note, there's still growth across the UK. You see, slowing property value growth isn't solely Brexit related, but after a number years of double digit rises in property values, affordability has weakened and cooling price growth is widely seen to be a natural correction of the market.
On the other hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.
So, what will happen in 2017 in the Stamford property market?
Some say until we know what type of exit the UK will make from the EU, it is hard to evaluate the outcome. Although, I believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Stamford) housing market as a whole.
Generally, Stamford asking prices continue to hold up well, as asking prices are 4.7% higher year on year. At this time of year asking prices tend to drop in the run up to Christmas and locally they have dropped by 1.3% this month (November 2016), although this still compares well with last year’s drop in Stamford’s asking prices, as we saw asking prices drop by 0.6% in November 2015.
Now it’s true to say, after chatting with fellow property professionals in Stamford, all of us have seen the number of property sales fall slightly, suggesting a slowing market, but it is very early days and it could just be the time of year. Also, the numbers are limited, so it’s interesting to take note from a recent survey by the Royal Institution of Chartered Surveyors, stating new buyer enquiries and new instructions are falling at the same rate, suggesting that there will not be a downward pressure on property values.
Looking at the figures for the UK (as we can’t just look at Stamford in isolation), property values are generally rising slower than a few years ago, but on a positive note, there's still growth across the UK. You see, slowing property value growth isn't solely Brexit related, but after a number years of double digit rises in property values, affordability has weakened and cooling price growth is widely seen to be a natural correction of the market.
On the other hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.
So, what will happen in 2017 in the Stamford property market?
Some say until we know what type of exit the UK will make from the EU, it is hard to evaluate the outcome. Although, I believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Stamford) housing market as a whole.
As I have mentioned time and time again over the last few months, the biggest issue is demand outstripping supply when it comes to the number of households required to house us all. Stamford has an ever-growing population - with immigration (we still have at least 2 years of free movement from EU members into the UK), people living longer and the fact we need thousands of additional households as the country has nearly 115,000 divorces a year (where 1 household becomes 2 households).
These are interesting times ahead!
If you are considering purchasing an investment property, or would like to discuss one you already own, please get in touch with me. I am more than happy to discuss any property with you.
David Crooke
SALES & LETTING AGENTS
Email: david@upp-property.co.uk
Stamford: 01780 484 554 Oakham: 01572 725 825
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