Well, hasn’t 2016 been eventful. The ups and
downs of Brexit, the Queen’s 90th, Andy Murray winning Wimbledon, Trump,
Bake Off to Channel 4 and something close to the hearts of every buy to let
landlord and homeowner in Huddersfield ... the Huddersfield property market.
So, let’s look at the headlines for the Huddersfield
property market...
In the last month, Huddersfield property values
dropped by 0.68%, leaving them, year on year 2.7% higher, whilst interestingly,
Huddersfield asking prices are down 1.1% month on month. All three statistics
go to show the Huddersfield property market has recovered well after the summer
lull, which was worsened by the uncertainty surrounding the EU vote back in
June. Irrespective of all the issues, the average value of a Huddersfield home
now stands at £173,300.
Generally, Huddersfield asking prices continue
to hold up well, as asking prices are 4.1% higher year on year. At this time of
year, asking prices tend to drop on the run up to Christmas and locally, they
have dropped by 1.1% this month (November 2016), although this compares well
with last year’s drop in Huddersfield asking prices, as we saw asking prices
drop by 2.2% in November 2015.
Now it’s true to say, after chatting with
fellow property professionals in Huddersfield, all of us have seen the number
of property sales fall slightly, suggesting a slowing market, but it is very
early days and it could be the time of year. Also, the numbers are limited, so
it’s interesting to take note from a recent survey by the Royal Institution of
Chartered Surveyors, stating new buyer enquiries and new instructions are
falling at the same rate, suggesting that there will not be a downward pressure
on property values.
Looking at the
figures for the UK (as we can’t just look at Huddersfield 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. You
see, slowing property value growth isn't solely Brexit related, but after a
number years of double digit rises in property values, affordability has
weakened and cooling price growth is widely seen to be a natural
correction of the market.
On the other
hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine
for the post-Brexit worry and will, as a consequence, ensure that the UK
economy continues to be underpinned by buoyant property prices.
So, what will happen in 2017 in the Huddersfield
property market?
Some say until we know what type of exit the
UK will make from the EU it is hard to evaluate the outcome. Although, I
believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Huddersfield)
housing market as a whole. As I have mentioned time and time again over the last
few months, the biggest issue is demand outstripping supply when it comes to
the number of households required to house us all. Huddersfield has an ever-growing
population: with immigration (we still have at least two years of free movement
from EU members into the UK), people living longer and the fact we need thousands
of additional households as the country has nearly 115,000 divorces a year
(where one household becomes two households).
These are interesting times ahead!
No comments:
Post a Comment