Thursday 20 October 2016

The Future of the Warrington Property Market

As the trees turn from green to hues of red and brown, the Warrington property market has a confident feel to it. 

With the continued lack of properties being built and an inherent shortage in reasonable quantity and quality coming to the market, buyer enquiries are strong and motivation is even stronger. Especially given those inexpensive lending rates and general demand caused by under supply.

Now of course, there are a few potential hurdles coming towards us in the coming months that could affect the Warrington (and UK) property market. Mrs. May has yet to get her teeth into Brexit negotiations and we don’t know what the US Presidential elections might do to the money markets around the world. All of this meaning that on the run up to Christmas, some savvy buyers may take advantage of the lack of certainty by making cheeky offers. However, I don’t believe these will have a huge impact on property values (like the 2008 Credit Crunch).

You see, property ownership, whether it’s for yourself as a homeowner or buy to let landlord, is a long term investment. In fact, focusing on buy to let, a number of landlords who own property in Warrington have made contact with me recently asking for my thoughts on the future of the buy to let market in Warrington. 

Well, as the Politician Edmund Burke said in the 18th century:

'Those who don't know history are destined to repeat it.'

In other words, to see the future you must look into the past.

A SHORT HISTORY OF THE HOUSING MARKET

Since the millennium, the housing market has had everything thrown at it. 

The recent Brexit, last year’s General Election, the near melt down of the World Economy with the Credit Crunch, The Dot Com boom and subsequent bust, the housing boom of 2001... the list goes on.

AVERAGE PROPERTY VALUES IN WARRINGTON SINCE THE MILLENNIUM 

Even though the Dot Com bubble burst in 2000, two years later, in January 2002, property values in Warrington had risen from £93,405 to £133,200. These kept rising to March 2008, when they peaked at £171,838. Of course, then we had the Credit Crunch and property prices continued to fall until April 2009, where they averaged £156,394. But look where they are now: £194,447.


The point I am trying to get across is this:

Long term future property values are more helpful to landlord investors than the month by month headline grabbing micro movements in the property market. 

Look at the graph and you will see the growth in property values is an upward trend BUT, the average darts about as each month goes by. So, don’t watch the property indexes and panic if values drop next month or the month afterwards, because even in the glory days of 2001 to 2004 and 2012 to 2014, without fail, values always dropped slightly around Christmas. However, people will always need a roof over their heads - and if they can’t buy and the council aren’t building anymore... only buy to let landlords can meet that demand.

Warrington landlords are being hit in the pocket with the new up and coming taxation rules. So yes, we might have a bumpy ride on the run up to Christmas because of the points raised earlier. 

But, Brexit or no Brexit, the trend will be a slow and steady upward momentum of property values, demand for rental properties and yields in the Warrington property market into 2017 and beyond.

If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Warrington Property Market, together with regular postings on what I consider the best buy to let deals in Warrington (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch!

Email me on manoj@hamletwarrington.co.uk or call on 01925 235338. If you are in the area, feel free to pop into the office – we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

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