Well, wasn’t 2016 been eventful. The ups and
downs of Brexit, the Queen’s 90th, Andy Murray winning Wimbledon, Trump,
Bake Off to Channel 4 and something close to the hearts of every buy to let
landlord and homeowner in Warminster ... the Warminster property market.
So, let’s look at the headlines for the Warminster
property market...
In the last month, Warminster property values rose
by 2.03%, leaving them, year on year 10.4% higher, whilst interestingly, Warminster
asking prices are down 0.9% month on month. All three statistics go to show the
Warminster property market has recovered well after the beginning of the
summer, which was impacted by the uncertainty surrounding the EU vote back in
June. Irrespective of all the issues, the average value of a home in BA12 now stands
at £296,700.
Generally, Warminster asking prices continue
to hold up well, as asking prices are 5.7% higher year on year. At this time of
year, asking prices tend to drop on the run up to Christmas and locally, they
have dropped by 0.9% in November 2016, although this compares well with last
year’s drop in Warminster asking prices, as we saw asking prices drop by 2.3%
in November 2015.
Now it’s true to say, after chatting with
fellow property professionals, 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 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, 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 Warminster
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 Warminster)
housing market as a whole. As I have mentioned time and time again over the last
few months in my blog, the biggest issue is demand outstripping supply when it
comes to the number of households required to house us all. Warminster has an ever-growing
population: with immigration (we still have at least two 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 one household becomes two households).
These are interesting times ahead!
