The value of all the homes in Rotherham has risen by more than 231% in the past two decades to £5.662bn… meaning it’s worth more than the stock listed company Royal Mail Group, which is worth £5.636bn.
Those Rotherham homeowners and buy-to-let landlords who bought their homes twenty or more years ago have come out on top, adding thousands and thousands of pounds to the value of their own Rotherham homes as the younger generation in Rotherham continue to be priced out of the market.
This is even more remarkable because, in those twenty years, we have had the global financial crisis in 2008, where we saw a short term drop in Rotherham house prices of between 15% and 20% (depending on the type of property). And although there have been a number of consecutive years of growth in property values recently in Rotherham, it hasn’t been anywhere near the levels seen in the early 2000s.
How the value of property in Rotherham has increased over the last 20 years
Twenty years ago the total value of Rotherham property was £1.708bn.
Over those twenty years, total property values have increased by £3.954bn, meaning that today the total value of all the properties in Rotherham is worth £5.662bn. Even more remarkable, when you consider the FTSE100 has only risen by 40.84% in the same time frame. Also, when I compared it with inflation, i.e. the UK Retail Price Index, inflation had risen by 72.2% during the same twenty years.
What does this mean for Rotherham?
So, what does this all mean for Rotherham?
Well, as we enter the unchartered waters of 2018 and beyond, even though property values are already declining in certain parts of the previously overcooked central London property market, the outlook in Rotherham remains relatively good. This is because over the last five years, the local property market has been a lot more sensible than the market in central London.
Rotherham house values will remain resilient for several reasons:
- Demand for rental property remains strong with persistent immigration and population growth.
- With 0.25% interest rates, borrowing has never been so cheap.
- A simple lack of new house building in Rotherham.
Ignoring years and years of under investment in Rotherham housebuilding, we’re not even keeping up with current demand! So although it might be a bumpy ride over the next 12 to 24 months, in the medium term, property ownership and property investment in Rotherham has and always will, ride out the storm.
In the coming weeks, I will look in greater detail at my thoughts for the 2018 Rotherham Property Market. As always, all my articles can be found here! Don’t forget to visit Facebook and Twitter for my more thoughts on the property market here and further afield!