I had an interesting chat with a Heath
homeowner after he popped into our office for a coffee whilst his Wife was
doing some Christmas shopping (that reminds me, I must start
thinking about mine!). We got talking about the Heath property market and I
thought other Heath homeowners and Heath landlords might be interested in what
we discussed.
You see, property values didn’t stop dropping
in Heath until February 2013, so after a strong run over the last 34 months,
the ever upward drive of house price rises has started to turn with increases
now at an almost standstill for the first time since the start of 2013. Now it
could be said this easing of the housing market in Heath can be attributed
partly to the time of year (last year property values in Heath stood still in
November and even dropped by 0.1% in December), but it is obvious as with
ourselves and other estate agents in Heath, we are wary about the direction of
the market as a result of the not as strong demand and fewer house sales.
Interestingly, looking at the Land Registry
data, 262 properties have changed hands and sold in Heath over the last 12
months, a drop from the preceding 12 months before that (2014), when 328
properties sold and 295 in the year before that (2013). The main indicators
suggest that buyers will start to gain the upper hand. However, there are many
homeowners who don’t need to sell and won’t bother unless it’s economically
beneficial to do so, but most homeowners are homebuyers, so what they lose with
one they gain with another.
For Heath landlords, things are looking good,
especially for those looking to buy rental property with the changes in stamp
duty in 2014 and earlier in 2015 the new rules regarding pensions, where you
will be able to take money out of your pension pot to invest in property.
However, at the same time, I would say don’t just buy any old property in Heath.
First time landlords need to be cautious. The doubling of house prices every
seven to ten years which has taken place since WW2 doesn’t seem to have been
seen since the mid 2000’s. The property market is shifting with more properties
being built and restrictions put on mortgage lending, the likelihood of the
property market increasing at the same levels as the past are questionable.
If you’re looking for any advice on the heath
property market, be it for sales or lettings, feel free to drop me an email or
give me a call.
