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.
Twitter, https://twitter.com/HHWarrington
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