Colchester property price rises do look set to be more restrained in 2017. Although Brexit hasn’t had a sizeable impact on the Colchester housing market so far looking forwards the economic outlook remains uncertain so Colchester property price rises do look likely to be subdued in 2017. However, I don’t think this is bad news – let me explain.
Apart from the inevitable post Brexit property value wobbles last summer the economy, on the whole, has exceeded most commentators expectations. Looking at the Colchester property prices for the Colchester Borough Council area we find:
- November 2016 Colchester property price rises: 0.31%
- October 2016 Colchester property price rises: 1.32%
- September 2016 Colchester property price rises: 1.52%
- August 2016 Colchester property price rises: 1.57%
- July 2016 Colchester property price rises: 1.0%
- June 2016 Colchester property price rises: 2.46%
The UK property market continues to perform robustly with annual price growth ending 2016 around 6.9% and most East of England region property markets at 12.3%.
Talking to fellow property agents in London the tidal wave of growth between 2013 and 2015 in the capital has subdued post Brexit. However it looks like the central London house price wave has started to ripple out to the surrounding regions with property agents in East Anglia and the South East regions outside of London starting to see stronger growth compared to properties inside the M25. So, fellow Colchester landlords and homeowners, is now the time to buy surfboards ready to ride the London wave?
To date Colchester hasn’t been affected by the central London property mega bubble that surrounded Kensington, Chelsea, Marylebone, Mayfair etc. The Colchester property market is primarily driven by sentiment and confidence. The economic uncertainty surrounding the Brexit process does look likely to dampen consumer confidence as the government prepares to trigger Article 50 by the end of March 2017.
The ban on tenant fees introduced by the government in their recent tax reforms affecting landlords looks likely to reduce demand from buy to let landlords which will probably suppress further upward pressure on property values. On the other hand demand from tenants has been strong but has been counterbalanced by a strong supply of rental properties. In my opinion, rents may not grow as much in 2017 as they did in 2016, but by 2018 it’s likely rents will have risen again to take account of the governments changes to tenant fees.
In general the Colchester property rental market looks positive with modest rental growth expected in 2017. Rents may rise faster than expected if landlords begin to sell properties in an effort to offset the impact of tax rises.
I am expecting Colchester property price rises around 1.5% in 2017, compared to a rise of 14.1% this year, then picking up again in 2018 with rises of 2.4%, 3.1% in 2019, 4.6% 2020 and 6.1% in 2021. Obviously these predictions can’t take into account unforeseen world events, Brexit and/or political uncertainties, such as a snap general election in which case a lifeboat may be more useful than a surfboard!
Please share your thoughts on potential Colchester property price rises or falls in 2017 in the comments area below or give me a ring on 01206 862288 to discuss any aspect of the Colchester property market. If you’d like my opinion on any Colchester properties listed Zoopla or Rightmove please email the link/s to firstname.lastname@example.org and I’ll get back to you.