“What’s happening to the Huddersfield Property Market” is a
question I am asked repeatedly. Well,
would it be a surprise to hear that my own research suggests that there isn’t
just one big Huddersfield property market – but many small micro-property markets?
According to recent data released by the Office of National
Statistics (ONS), I have discovered that at least three of these micro-property
markets have emerged over the last 20+ years in the town.
For ease, I have named them the …
1.
‘lower’ Huddersfield Property Market.
2.
‘lower to middle’ Huddersfield
Property Market.
3.
‘middle’ Huddersfield Property Market.
The ‘lower’ and ‘lower to middle’ sectors of the Huddersfield
property market have been fuelled over the last few years by two sets of
buyers. The first set, making up the clear majority of those buyers, are cash rich
landlord investors who are throwing themselves into the Huddersfield property market
to take advantage of alluringly low prices and even lower interest rates. The
other set of buyers in the ‘lower’
and ‘lower to middle’ Huddersfield
property market are the first-time buyers (FTB), although the FTB market is in a state of unparalleled deadlock
as it’s been trampled into near-immobility and incapacity by the new 2014 stricter mortgage affordability
regulations and also fewer mortgages with low deposits.
Some of you
may be interested to know how I have classified the three sectors ..
1.
‘lower’ Huddersfield housing market – the bottom 10% (in
terms of value) of properties sold
2.
‘lower to middle’ Huddersfield housing market – lower Quartile (or
lowest 25% in terms of value) of properties sold
3.
‘middle’ Huddersfield housing market - which is the median
in terms of value
…. and if one
looks at the figures for Kirklees Metropolitan Borough Council area you can see
the three different sectors (lower, lower/middle and middle) have performed quite differently.
|
Kirklees
Metropolitan Borough Council Property Market – Sold Prices
|
Price Paid in 1995
|
Price Paid in 2017
|
Percentage Uplift
1995 - 2017
|
|
Lower (Bottom
10%)
|
£22,500
|
£72,000
|
220.00%
|
|
Lower to Middle
(Lower Quartile)
|
£31,500
|
£98,000
|
211.11%
|
|
Middle (The Median)
|
£47,474
|
£160,417
|
237.91%
|
You can quite clearly see that it is the ‘middle’ market that has performed the
best.
You might ask, what do all these different figures mean to
homeowners and landlords alike? Quite a
lot – so let me explain. The worst performing sector (with the lowest Percentage uplift) was the ‘lower to middle’ housing market. Therefore, interestingly, if we applied
the best percentage uplift figure (i.e. from the ‘middle’ market percentage uplift), to the ‘lower to middle’ 1995 housing market figure, the 2017 figure of £98,000,
would have been £106,442 instead – quite a difference you must agree?
Now, I have specifically not mentioned the upper reaches of the
Huddersfield housing market for several reasons. Firstly, the lower or middle market is where most
of the buy to let investment landlords buy their property and where the
majority of property transactions take place. Secondly, due to the unique and
distinctive nature of Huddersfield’s up-market property scene (because every
property is different and they don’t tend to sell as often as the lower to
middle market), it is much more difficult to calculate what changes have
occurred to property prices in that part of the Huddersfield property market -
looking at the stats for the up-market Huddersfield property market from Land
Registry, only 26 properties in Huddersfield (and a 5 mile radius around it)
have sold for £1,250,000 or more since 1997.
So, what should every homeowner and buy to let landlord take
from the information that there are many micro-property markets? Well, when
you realise there isn’t just one Huddersfield Property Market, but many Huddersfield
“micro-property markets”, you can spot trends and bag yourself some potential
bargains. Even in this market, I have spotted a number of bargains over the
last few months that I have shared in my Property Blog and to my landlord
database, especially in the ‘lower’ and
‘lower/middle’ market. If you want
to be kept informed of those buy to let bargains, have a look at my blog https://huddersfieldproperty.blogspot.co.uk/
. it’s free to do so and I’m sure you wouldn’t want to miss out – would
you?
I would love to know if you have spotted any micro-property
markets in Huddersfield.
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