Property values in Plymouth rose
by 0.2% in March. This follows several months of sluggish activity in the Plymouth
property market in the run up to the Election, putting the average price of a
property in Plymouth at £181,400, 2.2% higher than in March 2014.
Interestingly, the Council of Mortgage Lenders and Estate Agent trade bodies over the last few months have reported seeing a fall in mortgage lending and enquiries from prospective homebuyers. This is important because it comes amid an overall fall in housing market activity in Plymouth. Data from the Land Registry said completed house sales in Plymouth in the three months to January 2015, (the most up-to-date figures available) fell by 6.7% compared to the same three month period up to January 2014.
However, I believe that the slowdown in property sales in Plymouth is supporting Plymouth property values, as there is a shortage of houses coming onto the market. Even though in the whole of the first Quarter of 2015, Plymouth property value increases may seem subdued when compared to 2014, let us remember, property values are still rising well above the level of inflation.
Interestingly, the Council of Mortgage Lenders and Estate Agent trade bodies over the last few months have reported seeing a fall in mortgage lending and enquiries from prospective homebuyers. This is important because it comes amid an overall fall in housing market activity in Plymouth. Data from the Land Registry said completed house sales in Plymouth in the three months to January 2015, (the most up-to-date figures available) fell by 6.7% compared to the same three month period up to January 2014.
However, I believe that the slowdown in property sales in Plymouth is supporting Plymouth property values, as there is a shortage of houses coming onto the market. Even though in the whole of the first Quarter of 2015, Plymouth property value increases may seem subdued when compared to 2014, let us remember, property values are still rising well above the level of inflation.
As I have said many times before,
the population in Plymouth is growing at a much higher rate than the number of properties
being built. This increasing demand for a roof over people’s head, which is
outpacing the supply of new houses being built in Plymouth, is creating a severe
imbalance in the Plymouth (in fact the whole of UK’s) housing market, thus making
homeownership an ever increasingly distant dream for many of Plymouth’s
potential first time buyers.
In fact, I still maintain the
view that house prices are likely to rise by around 3 to 5% in Plymouth in
2015, even after taking into account this blip at start of the year. The reason
being is that the rise reflects both strong economic conditions and steady
market conditions with (and this is the most important factor) very low numbers
of properties on the market.
Many Buy to Let landlords know
that investing in the Plymouth property market is a long-term strategy of 10,
20 even 30 years. Governments come and go, but unless Plymouth City Council
start to build hundreds and hundreds of new properties a year to make up for
the shocking lack of supply, Plymouth people will always want a roof over their
head, and irrespective of which party is in power, if there aren’t any council
houses and they can’t (or are unable to buy), a demand for rental properties
will always remain.
As my existing Plymouth landlord clients will testify, whether you
manage your property yourself, or another Plymouth agent manages your
properties, everyone is always made to feel welcome when they pop in for a
coffee at our offices in Stoke village to discuss anything to do with the Plymouth
property market, how Plymouth compares with its closest rival towns. I don’t
bite, I don’t do hard sell, I will just give you my honest and straight talking
opinion. However, if you are too busy to pop into town, you could always visit
the Plymouth Property Blog www.plymouthpropertyinsight.co.uk for advice,
intelligent commentary and analysis of the Plymouth Property market.
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