The weather may still be warming up outside, but it’s already a hot time of year for the property market. The expected uptick in sales has materialised as you can see from the chart. Particularly notable are sales levels of terraces, which have increased 28.5 per cent since the second quarter of 2016.
With increasing clarity from the government, the housing market is returning to it’s usual stride. Looking at quarter-on-quarter price data in SK5, we can see that the average sold prices of flats is up 36.0 per cent since the last quarter of 2015.
New housing is a hotly debated subject in the UK. Despite the recent uptick in building rates, demand continues to outstrip supply and more affordable homes need to be built. The situation has improved over the last few years; the number of new homes started and finished in the UK is at a nine-year high. However, forecasts show that England alone needs to build 50 per cent more homes to keep up with demand, so the issue is far from resolved. The pressure is mounting on the government to find a solution.
156,140 new homes were registered for construction in 2015, the highest it has been in eight years. This was half a per cent higher than the previous year and 45 per cent higher than 2009.
From 2014 to 2015, private sector starts increased by seven per cent, while Housing Association starts rose by five per cent. That means that since the credit crunch in 2008, the UK housing stock has grown by around five percent, which is no small feat.
From individuals to large families, the spread of household size can indicate the likely availability of appropriately sized properties. The most common size of household in Reddish is one occupant, and makes up 35.9% of the total households in the area.
Increasing clarity in the UK’s economic future has increased confidence in the property market. A look at sales levels in Reddish over the last 15 months seems to indicate this too. Since December 2015 sales levels for flats are up 167 points and houses are up 60 points since October 2016.
The total housing market value is a combination of the number of transactions and the average property price in a given quarter. It can give a real idea of the buoyancy of the market in Reddish. The first quarter of 2016 was the largest quarter (32.6%), closely followed by the final quarter of 2015 (25.5%).
When it comes to selling your home, the goal is to achieve more than the initial price you paid when you bought it. A significant amount of your home’s resale value will be affected by the appreciation of house prices in SK5, where average sales values have risen by 9.4% over the last 10 years. However, if you want to achieve the maximum sale price for your property, there are several home improvements you can make that will add to the overall value.
Creating an extra bedroom, especially with a loft conversion, offers the best return for your money. Although initial costs are not inconsiderable, a double bedroom could add 11 per cent to the value of your home, a gain of £13,600 on average SK5 properties. Budget carefully according to your house size and current market value, and you could be onto a winner.
The Brexit vote and the falling value of the pound have led some to think sales levels might have dipped in the market. However, as the chart shows, sales levels have remained steady throughout the year, contrary to the perceived negativity in the market. We expect steady sales levels in the coming 12 months.
Whether an area is ‘up-and coming’ or has arrived, the wealth distribution can indicate if the area has the character you are after. In Reddish, the majority of households are ‘getting started’ (34.5%). The corresponding figure in the region is 28.5%, whereas the national average is 24.9%.