Just a few months since Brexit and we’re settling into Autumn with the Great British Bake Off, Strictly and the new football season. Newspapers continue to publish the news according to the world view of their owners while the stock market is up and Sterling is down. Meanwhile I remain focused on most Brit’s favourite subject, apart from the weather, – the property market.
Here’s the thing – the UK doesn’t have a single property market. Instead, it’s made up of mini housing markets which all perform differently. At one end of scale Kensington and Chelsea in London, has seen average prices drop in the last twelve months by 6.2% whilst in the East Of England property market, house prices are 14.3% higher. But what about Colchester?
Colchester property market prices are 13.1% higher than a year ago and 3% higher than last month
So what does this mean for Colchester landlords and homeowners? In reality, not much unless you’re buying or selling. Most sellers are buyers anyway, so if the property you’re buying has gone up, yours has gone up too. Everything is relative but what I would say is, if you look hard enough, even in the current property market, there are still bargains to be found.
However, the more important question to ask is not just what’s happening to property prices, but exactly which price band is selling best? I keep an eye on the Colchester property market on a daily basis so I can offer the best advice and informed opinion about what (or not) properties to look at in Colchester.
If we split the property market in Colchester into four equal sized price bands so each band has around 25% of the property for sale in Colchester, from the lowest band (the bottom 25%) all the way through to the highest 25% band (in terms of value) it breaks down like this:
- Nil to £190k 215 properties for sale and 385 sold (stc) i.e. 64% sold
- £190k to £270k239 properties for sale and 369 sold (stc) i.e. 60% sold
- £270k to £350k229 properties for sale and 207 sold (stc) i.e. 47% sold
- £350k +201 properties for sale and 165 sold (stc) i.e. 45% sold
Fascinating isn’t it? It’s the lower to middle Colchester property market bands that are selling best.
The next nine months’ activity will be crucial in understanding which way Colchester property values will go into 2017 and after Brexit – but Brexit or no Brexit, people will always need a roof over their heads which is why the property market got through the oil crisis’ in the 1970’s, the 1980’s depression, Black Monday in the 1990’s and more recently the credit crunch – and also the house price crashes in 1973, 1987 and 2008.
Why is the property market so resilient? Because Britain’s chronic lack of housing props up house prices and prevents a post spike crash – it seems there’s always a silver lining when it comes to the property market!
If you’d like a second opinion on an investment property you are considering or would just like an informal chat about any aspect of properties in general please feel free to call me on 01206 862288 or email firstname.lastname@example.org – I’m happy to provide free feedback without obligation and undertake free pre-purchase visits to your shortlist of potential properties to provide rental valuations. If you send me the hyperlink to any property on Zoopla or Rightmove I will get back to you, often the same day.