2016 was certainly eventful in ways that will affect all our lives for years to come. The change of UK government following Brexit and Trump winning the US election means the world is entering a period of uncertainty. This Colchester property market overview looks at the prospects for Colchester landlords and homeowners.
The headlines for the Colchester property market in November were:
- Colchester property values rose by 1.64%
- Colchester property values are 12.7% higher year on year
- Colchester asking prices are down 2.0% month on month
- The average value of a Colchester home is currently £317,800
Taking these stats together suggests the Colchester property market recovered well after a lull in the summer, which was adversely affected by all the uncertainty surrounding the EU vote in June. Colchester asking prices generally continue to hold up well with asking prices still 5.8% higher year on year. As Christmas approaches asking prices traditionally drop which explains the 2.0% drop – although it’s higher than the 0.3% drop in November 2015.
After chatting with fellow property professionals in Colchester the consensus is the number of property sales has indeed fallen slightly, which does suggest a slowdown in the market but it’s too early to tell whether it’s just the time of year or the start of a trend. A recent survey by the Royal Institution of Chartered Surveyors, states new buyer enquiries and new instructions are falling at the same rate, which suggests there won’t be downward pressure on property values.
Looking at the overall figures for the UK, rather than Colchester in isolation, property values are generally rising slower than a few years ago but, on a positive note, there’s still growth across the UK. Slowing property value growth, after a number years of double digit rises in property values, is widely seen to be a natural correction to the property market. Affordability has weakened which leads to slower overall price growth.
On the other hand, interest rates at 0.25% remain at record low levels which helps the property market. The cut in interest rates in the Autumn was the tonic needed to get the market over any post-Brexit angst and looks likely to underpin buoyant property prices in the months ahead.
Colchester Property Market Overview – Prospects For 2017?
Some commentators say we can’t evaluate the prospects for the property market until we know what type of exit the UK will make from the EU but I believe the key fact for both the UK and Colchester remains (as I have said consistently in other posts) remains that demand outstrips supply. Colchester has an ever-growing population and with:
- At least two more years of free movement within the EU
- People generally living longer
- Divorce rates running at almost 115,000 a year – which often means means one household becomes two
it’s clear we need more houses and until the gap between supply and demand narrows investments in the Colchester property market will continue to be “safe as houses”.
If you have any thoughts about this Colchester property market overview or would like to chat about any aspect of the Colchester property market give me a ring on 01206 862288. Alternatively you can email me via firstname.lastname@example.org or add your comments below.