Since the first quarter of 2015, average sales prices of detached properties in Reddish have increased by 4.4%, which represents the best performance of all property types. The next best performers were semis, which saw an increase of 2.0%, followed by terraces (1.8%). The poorest performance came from flats. These of course are averages.
According to the last census, the most common type of property in Reddish is a three bedroom house, which accounts for 54.8% of the total. This is 2.5% higher than the regional average and 8.3% higher than the national average. The next most common type of property is a two bedroom house (24.5%) followed by a four bedroom or more house (11.5%).
The volume of sales in a given area is a powerful measure of the vitality of local housing markets. In the last three years there have been 1,282 sales in Reddish. Terraces accounted for the largest number of sales (650), followed by semis (452), then flats (121) and detached properties accounted for the fewest sales (59).
As I’m sure you’ve noticed, things have changed a lot for first-time buyers recently. Government schemes and mortgage requirements seem to change every week, so would-be homeowners have got to keep up. However, for those in the know, there are a lot more options in Reddish than there used to be.
The first challenge awaiting would-be home-owners these days is the deposit for the mortgage. The bigger the deposit, the better the chances of getting a great deal. The minimum required deposit is around 5%, so with an average home in Reddish valued at £114,900 locals will require a deposit of at least £5,700. That’s a fair amount of saving up, given that average annual salaries in the region are £25,700.
The Government has stepped-up to help make saving easier. The newly introduced ‘Help To Buy ISA’ will hopefully make saving for a first home quicker and less painful. Save £200 and the Government will contribute £50 each time.
The Government has also made it easier for first-time buyers to purchase new-build properties. With the ‘Help To Buy’ scheme, they still need a deposit of around 5%, but then the Government loan a further 20% interest free for the first five years, meaning they only need a mortgage for 75% of the property price. In London the loan is up to 40%. After year five they have to pay interest at 1.75% of the shared equity loan at the time they purchased the property, rising each year after that by the Retail Prices Index (RPI) plus 1%. Sell up or pay the mortgage back and they’ll be asked to repay the Government’s share of the loan, along with a share of any increase in the home’s value.
Interestingly, of the 146,500 people who took advantage of the ‘Help To Buy’ scheme between the 1st of April 2013 and the 31st of December 2015, none of them were in Reddish. Low figures are usually down to low house building rates.
Another option for buying a first home in Reddish is shared ownership, which allows a would-be homeowner to part-buy part-rent their property. Back in 2011, there were 139 shared ownership properties in Reddish and given the national growth rate there should be around 164 now.
Under this scheme, owners start off with buying anything from 25% to 75% of their home, usually with a mortgage, and paying a monthly rent to a housing association, who will usually give the occupier the chance to increase their ownership share, known as ‘staircasing’.
In Reddish, the majority of households own one car (43.1% of all households). This is 0.5% higher then the average in the North West. The next most common category of car ownership in Reddish is no cars (36.8% of all households), which is 8.8% higher than the average in the North West.
An analysis of commuting preferences in Reddish shows that the majority of people use a car to get to work (65.8%). This is followed by bus (17.4%), and then on foot (8.9%). It will be interesting to monitor how this pattern changes over time given the trend in Reddish and everywhere else to more flexible working, i.e. working from home
It’s 5.50am as I start to type this article and David Dimbleby has just announced the UK will be leaving the EU as the final votes are counted. As most of the polls suggested a Remain Vote, it came as a surprise to most people, including the City. The Pound has dropped 6% this morning after the City Whiz kids got their predictions wrong and MP’s from the Remain camp are using words like “challenging times ahead”.
.. and now the vote has been made .. what next for the 7378 Reddish homeowners especially the 4377 of those Reddish homeowners with a mortgage?
The Chancellor in the campaign suggested property prices would drop by 18%. Using Treasury estimates, their method of calculating this was tenuous at best, but focused around the abrupt and hasty increase in UK interest rates, which in turn would raise the cost of mortgages, and therefore lower demand for property, causing a drop in property prices.… and I would say, yes .. that will probably happen.
Reddish Property Values
Since the last In/Out EU Referendum in June 1975, property values in Reddish have risen by 1545.1%
The Chancellor in the campaign suggested property prices would drop and whilst property prices did drop nationally by 18.7% between the peak of 2007 and bottom of the market in 2009, when one compares property values today in the country, compared to that all-time high of 2007, (the period before the financial crisis of the Credit Crunch of 2008/9) .. they are still up 10.14% higher.
Another Credit Crunch?
And so, notwithstanding the Credit Crunch, the worst global economic outlook since the 1930s and the recession it brought us, a matter of a few years later, the Government were panicking in 2012/3/4 that the housing market was a runaway train.
Now the same Credit Crunch doom-mongers and Sooth-Sayers that predicted soup kitchens in 2008/9 are predicting Brexit meltdown. Bad news sells newspapers. Stock markets may rise, stock markets may fall, yet the British public continued to buy property in 2009/10 and beyond. Aspiring first time buyers and buy to let landlords dusted themselves down, took a deep breath and carried on buying… because us Brit’s love our Bricks and Mortar .. we need a roof over our head.
However, as mentioned previously, if the value of the pound drops, in the past UK Interest Rates have risen to reverse that drop. However, whilst a cheaper pound will make your pint of Sangria a little more expensive on your Spanish holiday this year and make your brand new BMW pricer .. it will make British export cheaper! Which is great for the economy.
In the last 12 months, terraces have accounted for 51.9% of all transactions making this the most common type of property on the market in SK5 (422 in total). Over the same period semis accounted for 38.4%, flats accounted for 5.2% and detached properties provided 4.3% of transactions.
A standard measure of a full working week is about 48 hours. That is what the EU uses in it’s ‘Working Time Directive’ to ensure employees are not being over-stretched. In Reddish, 91.2% of full- or part-time workers work those hours or fewer. That means 8.8% work more than that, a total of 1,200 people. Many of our clients fit into this category, and if you are one of them we are ready to work around your busy schedule.
A quarterly analysis of the last four years achieved sales prices from the Land Registry show some interesting patterns in Reddish. Achieved sales prices of flats have increased by 4% per quarter since 2012. This compares with 1.4% for terraces, 1.7% for semis and 3.2% for detached properties. In total, it is detached properties which have increased the most with prices now 29% higher than in 2012.