Thursday, 22 January 2015
What happened to the Belper property market in 2014?
Property values rose by 8.4% (Oct 13 to Oct 14) in Belper over the same time frame. Good news all round, but when you consider property values have previously dropped by 17% between September 2007 and June 2009, this is not as good as the media would have you believe. It should be no great surprise to hear that Belper property values are starting slow up as we head in to the New Year. Whilst property values in Belper were growing by nearly 1% a month in the Summer months, on the run up to Christmas, they have slowed and now increased last month by 0.5%.The reality is we have had a year and a half of decent market conditions in Belper, but now all that pent up demand is starting to fade. The big question moving forward is whether the Belper market will now be held back by affordability and restricted mortgage lending, and what long term impact this will have on the Belper property market.
Looking at the UK as a whole, because we can’t look at Belper just on its own, the recent strong rise in house values in some parts of the UK in the early part of the year (especially in London), along with earnings growth that remain below inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand. This weakening in demand has led to a modest easing in both property price growth and sales. A moderation in growth looks likely into next year as supply and demand become increasingly better balanced.
Now with the General Election just a few months away, whichever Government takes power, they, along with the Bank of England, have a thorny job to do in balancing the expected rise in interest rates with the continued resurgence of the housing market, to ensure the property market doesn’t drop and drag down the economic recovery forcing people into selling their property at a loss.
However, back to Belper, long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-
“Should I sell my property in Belper, or even buy another?”
“Is the time right to buy another buy to let property in Belper and if not Belper, where?”
“Are there any property bargains out there in Belper?”Many other Belper landlords, both who are with us and many who are with other Belper letting agents, like to pop in for a coffee to discuss the Belper property market, how Belper compares with its closest rivals; Eastwood, Ilkeston and Heanor, and hopefully answer the three questions above. Give me a call and I will just give you my honest opinion.