Plymouth
house prices up or Plymouth house prices down? ... and if so, by how much?
Those of you who read the Plymouth Property Blog will know I am not the sort of
person who pulls punches nor someone who ever fails to give a forthright and
straight talking opinion – so here are my thoughts for the 56,798 Plymouth homeowners
and landlords.
The average Plymouth property is 3.9% higher today than it was a year ago, which doesn’t sound a lot, but when you consider inflation is currently running at -0.1% (ie consumer/retail prices are dropping) and average salary growth is only around 2.5% pa, this is bad news for first time buyers as property affordability continues to decrease (although I was reading in The Times the other day that wage inflation (ie salary growth) is showing signs of weakening).
Some commentators have said the higher stamp duty taxes announced a few weeks ago in the Autumn Statement for buy to let landlords, concerns over first time buyer affordability and the outlook of UK interest rate rises in 2016 will really dampen the property market. I hope you all read my previous article about what the new stamp duty rule changes would REALLY mean for Plymouth landlords in my blog, but I believe the real issue in the Plymouth property market is the shortage of property to buy, as people either worry there will be no suitable house to move to, or cannot afford to upgrade. However, on the supply side, Mr Osborne said in his Autumn Statement that he will change the planning laws to ensure the government meets the pledge made at the General Election (back in May) of 200,000 new homes a year. All I can say is .. good luck George hitting those numbers!
The average Plymouth property is 3.9% higher today than it was a year ago, which doesn’t sound a lot, but when you consider inflation is currently running at -0.1% (ie consumer/retail prices are dropping) and average salary growth is only around 2.5% pa, this is bad news for first time buyers as property affordability continues to decrease (although I was reading in The Times the other day that wage inflation (ie salary growth) is showing signs of weakening).
Some commentators have said the higher stamp duty taxes announced a few weeks ago in the Autumn Statement for buy to let landlords, concerns over first time buyer affordability and the outlook of UK interest rate rises in 2016 will really dampen the property market. I hope you all read my previous article about what the new stamp duty rule changes would REALLY mean for Plymouth landlords in my blog, but I believe the real issue in the Plymouth property market is the shortage of property to buy, as people either worry there will be no suitable house to move to, or cannot afford to upgrade. However, on the supply side, Mr Osborne said in his Autumn Statement that he will change the planning laws to ensure the government meets the pledge made at the General Election (back in May) of 200,000 new homes a year. All I can say is .. good luck George hitting those numbers!
Why? Because houses take years to build .. not months .. so George
and his fabled house building aside .... where does that leave us in Plymouth
in 2016?
Well, talking of supply ... whilst Mr Osborne builds his
properties (and let’s be honest - a week doesn’t go by without him being filmed
on a building site with a high viz jacket and hard hat building a house here
and there!), let us look at the shortage of properties for sale. Back in December
2011, 2,011 properties were for sale in Plymouth .. today that figure is 1,588.
On the face of it, this means there is less choice for Plymouth buyers – but it
also means with a restricted supply of properties for sale .. it keeps property
prices high for Plymouth house sellers.
Everything isn’t all doom and gloom though ... again back in
December 2011, the average property in Plymouth took 108 days to find a buyer
.. latest figures state this has dropped to 87 days .. a drop of 19% in how
long it takes to find a buyer. However, when you delve even deeper, the best
performing type of property today in Plymouth is the 2 bed, which takes 80 days
to find a buyer (on average) compared to the 1 bed, which takes 112 days. It
just goes to show, even though the average has dropped since 2011, how varied
that change has been!
So, back to the question everyone is asking .... What
will happen to property values in Plymouth in 2016? I am going to suggest they will rise between 3%
and 4% ... nothing out of the ordinary, but unless something cataclysmic
happens in the world, 2016 will be like 2015! For more thoughts, opinions and
views on the Plymouth property market visit the Plymouth Property Blog www.plymouthpropertyinsight.co.uk
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