Many landlords have been asking me my thoughts on the Plymouth
property market recently, and in particular, what is happening to property
values. My calculations show property values in Plymouth quite interestingly grew
in the month of September by 1.2%. When
one looks at the annual growth, Plymouth values are 3.7% higher (when comparing
Sept 14 to Sept 15), impressive when you consider the annual growth of property
values was only 2.7% per annum in February. On the other hand, there are signs that the
fundamental growth of property values in Plymouth has now peaked, despite
those average property values being below levels recorded in 2007 (just before the 2008 crash).
The outlook for the Plymouth property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue? However, on a positive note, Plymouth property values are still running ahead of salaries and average property values are 9.3% below the levels recorded in 2007.
Whilst the Plymouth headline rate appears to be better, i.e. the year on year (Sept 14 to Sept 15)
growth rate of 3.7% is obviously better than the 2.7% in February 14 to
February 15), this impressive rise of Plymouth property values masks the
underlying truth in what is really happening to local property values in the
City. Throughout 2015, property values have
been yo-yo like on a month by month basis, being quite volatile in nature. For example:-
·
September
2015 0.1% rise
·
August
2015 1.1% rise
·
July
2015 0,1%
rise
·
June
2015 0.2% rise
·
May
2015 0.2% rise
·
April
2015 0.0% level
·
March
2015 0.7% rise
This is in
part due to seasonal factors, as well as mortgage approvals increasing over
June and July and then falling by over 15% in August, according to the Council
of Mortgage Lenders (CML).The outlook for the Plymouth property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue? However, on a positive note, Plymouth property values are still running ahead of salaries and average property values are 9.3% below the levels recorded in 2007.
Talking to
fellow property professionals in the City, demand for property has been showing
signs of moderating in the final few months of 2015, which in turn will lead to
a slight slowdown in the pace of house price growth in the run up to the festive
season. You see, it is really important not to read too much into one month’s (September’s)
headline figures.
Readers might
be interested to note that before
the 2008 property crash, all the UK region’s housing markets tended to move up
and down in tandem like the Plymouth Synchronised Swimming team at the Plympton
Swimming Pool! Since then though, the Greater
London property market took off like a rocket in 2009/10, whilst the rest of
the UK only really started to grow in 2012/13, and even then that growth was a
lot more modest than the Capital’s. Looking
closer to home, it can even be different in neighbouring towns, areas and
cities, so whilst Plymouth property values are 3.7% higher than a year ago (as
mentioned above), Torbay property values are 0.8% lower than a year ago.
I cannot stress enough the importance of doing your
homework. One source of information and
advice is the Plymouth Property Blog where I have similar articles to this
about the Plymouth property market and what I consider to be the best buy to
let deals around at any one time in the City, irrespective of which agent it is
on the market with. If you haven’t
visited and you are interested in the local property market in Plymouth….. you
are missing out! www.plymouthpropertyinsight.co.uk
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