“How
much would it cost to buy all the properties in Huddersfield?”
This fascinating question was posed by the 14-year-old son of
one of my Huddersfield landlords when they both popped into my offices before
the Christmas break (doesn’t that seem an age away now!). I thought to myself,
that over the Christmas break, I would sit down and calculate what the total
value of all the properties in Huddersfield are worth … and just for fun, work
out how much they have gone up in value since his son was born back in the autumn
of 2002.
In the last 14 years, since the autumn of 2002, the total value of
Huddersfield property has increased by 107% or £4.99 billion to a total of £9.64
billion. Interesting, when you consider the FTSE100 has risen by 68.9% and
inflation (i.e. the UK Retail Price Index) rose by 38.7% during the same 14
years.
When I delved deeper into the numbers, the average price
currently being paid by Huddersfield households stands at £130,446.… but you
know me, I wasn’t going to stop there, so I split the property market down into
individual property types in Huddersfield; the average numbers come out like
this ..
|
Huddersfield
Property Market
|
|||
|
Average Value of a Detached
Property
|
Average Value of a
Semi-Detached Property
|
Average Value of a
Terraced/Town House Property
|
Average Value of an
Apartment
|
|
£257,153
|
£156,506
|
87,841
|
£105,500
|
... yet it got even more fascinating when I multiplied the total
number of each type of property by the average value. Even though detached houses
are more expensive, when you compare them with the much cheaper semi-detached
houses, you can quite clearly see detached properties are no match in terms of
total pound note value of the semi-detached houses.
|
Total Value of all
the Huddersfield Detached Properties
|
Total Value of all
the Huddersfield Semi-Detached Properties
|
Total Value of all
the Huddersfield Terraced/Town House Properties
|
Total Value of all
the Huddersfield Apartments
|
|
£2,967,545,620
|
£3,367,226,590
|
£2,289,751,347
|
£1,019,552,000
|
So, what
does this all mean for Huddersfield?
Well as we enter the unchartered waters of 2017 and beyond, even though
property values are already declining in certain parts of the previously over
cooked Central London property market, the outlook in Huddersfield remains
relatively good as over the last five years, the local property market was a
lot more sensible than central London’s.
Huddersfield
house values will remain resilient for several reasons. Firstly, demand for
rental property remains strong with continued immigration
and population growth. Secondly, with
0.25 per cent interest rates, borrowing has never been so cheap and finally the
simple lack of new house building in Huddersfield not keeping up with current
demand, let alone eating into years and years of under investment – means only
one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in
the medium term, property ownership and property investment in Huddersfield has
always, and will always, ride out the storm.
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