May 31, 2016
average reddish house prices up 13.4% last year
Reddish homeowners and buy-to-let landlords in SK5 should be pleased to know that prices have risen recently.
Our latest analysis of the Reddish property market shows that month-on-month, SK5 house prices have increased by 6.8%, whilst the year-on-year figures showed that house prices in SK5 have increased by 13.4% in the year, taking the average house price in the Reddish area to £117,100.
It gets even more interesting when we look at the last few months of 2015 and see the patterns that seem to be emerging.
• December 2015 – a rise of 6.8%
• November 2015 – a fall of 0.6%
• October 2015 – a fall of 1.5%
• September 2015 – a rise of 0.5%
The lack of new building developments has been the biggest factor contributing to the SK5 property values being 15.4% higher compared to 2009, and an eye watering 210.2% higher than in 1995.
Until the Government addresses this issue nationally, and allows more properties to be built, things will continue to get worse. The UK population grows at just under 500,000 people a year, whilst the country is only building 152,400 properties a year – no wonder demand is outstripping supply.
We firmly believe the property market in SK5 (and the country as a whole) is changing its attitude towards homeownership, which in turn will have major ramifications for the homeowners and buy-to-let landlords of SK5 alike. Back in the late 20th century, getting on the property ladder was everything. However, since the late 1990’s, we as a country (in particular, the younger generation of would-be homeowners) have slowly started to change their attitude to homeownership. We are moving to a more European model, where people choose to rent in their 20’s and 30’s (meaning they can move freely and not be tied to a property), then inherit money in their 50’s when their property owning parents pass away, allowing them to buy property themselves.
Some of the highest levels of home ownership are in Romania at 96.1%, Hungary at 88.2% and Latvia at 80.9% (hardly European economic powerhouses). In Western Europe, Spain has homeownership levels at 78.8% and Greece has 74.0% (and we know the economic woes of these countries well). At the other end of the scale, whilst we in the UK stand at 64.8% homeownership (and interestingly in Reddish is 57.2%), in Europe’s powerhouses, only 52.5% of Germans and 44.0% of Swiss people are homeowners.
In conclusion, falling homeownership and rising levels of renting mean this is great news for the 7,500 homeowners in SK5 and the landlords of the 1,700 private rental properties in SK5. The value of SK5 properties will remain strong, due to this lack of supply and good economic conditions whilst, it can clearly be seen, the demand for SK5 buy-to-let properties will continue to grow (which in turn will further bolster overall SK5 property values) as the younger generation choose to rent – meaning those who need to invest – may want to consider investing in SK5 bricks and mortar.
If you want a chat about the Reddish property market or about your property buying or selling needs – next time you are passing the office, pop in for an informal chat or if you don’t get down to the village that often, pick up the phone – we look forward to hearing from you!