Despite the UK economy heading in the right direction with
record low mortgage rates and unemployment
figures dropping, the rate of
property prices rising in Melton Mowbray have tempered since the start of the
year.
This slow but sure downward trend in the rate of growth has been in evidence since mid-2014. Property value increases continue to outpace the growth in salaries, however the gap is closing, helped by a lift in salaries over the last 6 months.
Property values in theEast Midlands
region as a whole are 2.9% higher than a year ago. Compare this to the neighbouring regions of
the West Midlands at 3.5% higher and Yorkshire at 1.1%, the majority of the
country continue to see annual house price gains - the exception being Wales
which recorded a slight decline of
-0.6%.
This slow but sure downward trend in the rate of growth has been in evidence since mid-2014. Property value increases continue to outpace the growth in salaries, however the gap is closing, helped by a lift in salaries over the last 6 months.
Property values in the
Even with the tempering in house price inflation, it does
not necessarily change my outlook that property prices are likely to be firmer
over the second half of 2015 amid heightening activity in the Melton Mowbray
property market. As stated in a previous
article, there is a current shortage of properties on the market, restricting
supply, which in turn will provide stability and support to Melton Mowbray
property prices. Therefore, I my overall opinion is that Melton Mowbray
property prices will rise by 5% over 2015 and roughly the same in 2016.
Property investment is a long term business. Buying the right sort of property is vital. I have recently been speaking with a number of Melton
Mowbray landlords about the importance of a balanced portfolio, when buying and
renting out property. The balance between buying properties that offer good
monthly returns (high yields) but quite often offer poor capital growth (i.e.
they don't increase in value that much over the years compared with the
average) verses properties that do go up in value quicker but often offer a
lower yield. So, what type of properties
have performed best over the last few years in Melton Mowbray, especially in
terms of their capital growth?
When comparing what the average price of detached, semi
detached, terraced and flats were selling for back at the start of the
Millennium to the present. The results
are quite remarkably different, almost like a bag of Liquorice Allsorts,
as the different types of property have performed poles apart over the last 15
years:
·
Detached Houses
in 2000 were selling on average for £118,862 and so far in 2015, they
have been selling on average in Melton Mowbray for £271,500
a rise of 128%
·
Semi -Detached
Houses in 2000 were selling on average for £58,180 and so far in 2015, they
have been selling on average in Melton Mowbray for £172,083
a rise of 196%
·
Terraced Houses
in 2000 were selling on average for £42,164 and so far in 2015, they
have been selling on average in Melton Mowbray for £108,129
a rise of 156%
·
Flats and
Apartments in 2000 were selling on average for £36,238 and so far in 2015, they
have been selling on average in Melton Mowbray for £89,125
a rise of 146%
Moving forward, what should new and existing buy to let landlords do with this information? Well, the questions I seem to be asked on an almost daily basis by landlords are:
·
“Should I sell my
property in Melton Mowbray?”
·
“Is the time
right to buy another buy to let property in Melton Mowbray and if not Melton
Mowbray, where?”
·
“Are there any
property bargains out there in Melton Mowbray to be had?”
Many other Melton Mowbray landlords,
who are with both us and other Melton
Mowbray letting agents, like to pop in for a
coffee, pick up the phone or email us to discuss the
Melton Mowbray property market, how Melton Mowbray compares with its closest
rivals (Leicester, Oakham and Loughborough), and hopefully answer the three
questions above. I don’t bite, I don’t
do hard sell, I will just give you my honest and straight talking opinion and
look forward to hearing from you.
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