Well it’s been a few months since Brexit and Autumn is here. The football season is in full swing and we’ve welcomed the Great British Bake Off, Strictly Come Dancing and The Apprentice back to our TVs. The newspapers are also returning to familiar territory… there’s good news, bad news and indifferent news about the Brit’s favourite subject (after the weather)… the property market.
However, we all know that the UK does not have one housing market. Instead, it is a patchwork of mini property markets all performing in a different way. At one end of scale is Kensington and Chelsea, which has seen average prices drop in the last twelve months by 6.2% whilst in our Yorkshire and Humber region, house prices are 5.5% higher.
But what about Rotherham?
Property prices in Rotherham are 1.3% higher than a year ago and 0.7% higher than last month.
So what does this mean for Rotherham landlords and homeowners? In reality, not that much unless you are buying or selling. Most sellers are buyers anyway, so if the one you are buying has gone up, yours has gone up.
Everything is relative and what I would say is this:
If you look hard enough there are still some bargains to be had in Rotherham – even in this market.
However, the most important question you should be asking is not ‘what is happening to property prices?’ but ‘which price band is actually selling?’
I like to keep an eye on the property market in Rotherham on a daily basis because it enables me to give the best advice and opinions on what to buy or not to buy.
If you look at Rotherham and split the property market into four equalled sized price bands, each price band would have around 25% of the property in Rotherham. A look at the percentage of properties on the market that are sold is quite interesting:
- 0-£80k 387 properties for sale and 99 sold (stc) i.e. 20% sold
- £80k-£120k 385 properties for sale and 138 sold (stc) i.e. 26% sold
- £120k-£190k 367 properties for sale and 234 sold (stc) i.e. 38% sold
- £190k+ 302 properties for sale and 102 sold (stc) i.e. 25% sold
Don’t you think that it’s fascinating that the middle market is doing the best?
The next nine months’ activity will be crucial in understanding which way the market will go this year after Brexit… but, Brexit or no Brexit, people will always need a roof over their head and that is why the property market has ridden the storms of oil crisis’ in the 1970s, the 1980s depression, Black Monday in the 1990s, and the credit crunch and the various house price crashes of 1973, 1987 and 2008.
Britain’s chronic lack of housing will prop up house prices and prevent a post-spike crash.