Well, wasn’t 2016 eventful…?
The ups and downs of Brexit, the Queen’s 90th, the now Sir Andy Murray winning Wimbledon and reaching the number one ranking, Leicester City’s unlikely Premier League triumph, Trump’s election in the US and Bake Off moving to Channel 4.
Most importantly and something very close to the hearts of every buy-to-let landlord and homeowner in Rotherham… the Rotherham property market.
So, let’s look at the headlines for the Rotherham property market…
In the last month, Rotherham property values rose by 1.01%, leaving them, year on year 5.1% higher. Interestingly, at the same time, Rotherham asking prices are down 1.1% month on month.
All three statistics go to show the Rotherham property market has recovered well after the summer lull, which was worsened by the uncertainty surrounding the EU vote back in June.
Irrespective of all the issues, the average value of a Rotherham home now stands at £146,200.
Generally, Rotherham asking prices continue to hold up well, as asking prices are 4.1% higher year on year. At this time of year, asking prices tend to drop on the run up to Christmas and locally, they dropped by 1.1% in November 2016, although this compares well with last year’s drop in Rotherham asking prices, as we saw asking prices drop by 2.2% in November 2015.
Now it’s true to say, after chatting with fellow property professionals in Rotherham, all of us have seen the number of property sales fall slightly, suggesting a slowing market, but it is very early days and it could be the time of year. Also, the numbers are limited, so it’s interesting to take note from a recent survey by the Royal Institution of Chartered Surveyors, stating new buyer enquiries and new instructions are falling at the same rate, suggesting that there will not be a downward pressure on property values.
Looking at the figures for the UK (as we can’t just look at Rotherham in isolation), property values are generally rising slower than a few years ago, but on a positive note, there’s still growth across the UK.
You see, slowing property value growth isn’t solely Brexit related, but after a number years of double digit rises in property values, affordability has weakened and cooling price growth is widely seen to be a natural correction of the market.
On the other hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine for the post-Brexit worry and will, as a consequence, ensure that the UK economy continues to be underpinned by buoyant property prices.
So, what will happen in 2017 in the Rotherham property market?
Some say until we know what type of exit the UK will make from the EU it is hard to evaluate the outcome. Although, I believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Rotherham) housing market as a whole.
As I have mentioned time and time again over the last few months, the biggest issue is demand outstripping supply – too many households are required to house us all.
Rotherham itself has an ever-growing population due to immigration (it will be at least two years before the free movement of labour across EU countries is curbed by Brexit), people living longer and divorce rates (there are 115,000 divorces a year meaning we need thousands of additional households as one household becomes two households).
These are certainly interesting times ahead!
Whatever 2017 has in store for the Rotherham property market, you can find the latest news and insights on this blog as well as my Facebook and Twitter sites. Follow the Rotherham Property Blog today!
