Friday, 20 November 2015

Heath Property Market – What has 2016 got instore for us?

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.

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