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 Warrington has slowed since the start of the year. 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 North West region as a whole are 8.1 higher than a year ago. Compare this to the neighbouring regions of the South West at 3.6% higher and West Midlands at 3.5%, the majority of the country continue to see annual house price gains - the exception being Wales which recorded a slight decline of -0.6%.
Even with the tempering in house price inflation, it does not necessarily change my outlook that property prices are likely to be firmer towards the end of 2015 amid heightening activity in the Warrington 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 Warrington property prices. Therefore, my overall opinion is that Warrington property prices will rise by 4-6% 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 Warrington 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) versus 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 Warrington, especially in terms of their capital growth?
Compare the average price of detached, semi-detached, terraced and flats 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 almost similar except the flats over the last 15 years:
- Detached Houses in 2000 were selling on average for £195,284 and so far in 2015, they have been selling on average in Warrington for £308,990, a rise of 58%
- Semi -Detached Houses in 2000 were selling on average for £109,562 and so far in 2015, they have been selling on average in Warrington for £173,098 a rise of 57.9%
- Terraced Houses in 2000 were selling on average for £88,069 and so far in 2015, they have been selling on average in Warrington for £127,341 a rise of 44.5%
- Flats and Apartments in 2000 were selling on average for £107,569 and so far in 2015, they have been selling on average in Warrington for £127,074 a rise of 18%
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 Warrington?”
“Is the time right to buy another buy to let property in Warrington and if not Warrington, where?”
“Are there any property bargains out there in Warrington to be had?”
Warrington landlords, who are letting their property both with us and other Warrington letting agents, like to pop in for a coffee, pick up the phone or email us to discuss the Warrington property market, how Warrington compares with its closest rivals (Bolton, Wigan and St Helens), and hopefully answer the three questions above.
I don’t bite, I don’t do hard sell, but I will give you my honest and straight talking opinion and look forward to hearing from you. Contact me Manoj Patel on 01925 235 338 or email me on manoj@hamletwarrington.co.uk If you are every in the area feel free to pop into the office for a chat we are based on 6 Bankside, Crosfield St, WA1 1UP (plenty free parking)
Don't forget to visit the links below to view back dated deals and Warrington Property News.
Twitter, https://twitter.com/HHWarrington
No comments:
Post a Comment