The
average house price in Warrington is 6.24 times the average annual Warrington salary.
This is higher than the last peak of 2008, when the ratio was 5.54. A number of
City commentators anticipated that in the ambiguity that trailed the Brexit
vote, UK (and hence Warrington) property prices might drop like a stone. The
point is - they haven’t.
Now
it’s true the market for Warrington’s swankiest and elegant properties looks a
little fragile (although they are selling if they are realistically priced) and
overall, Warrington property price growth has slowed, but the lower to middle Warrington
property market appears to be quite strong.
Scratch under the surface though, and a different
long-term picture is emerging away from what is happening to property prices. Warrington
people are moving home less often than they once did. Data from the Office of
National Statistics shows that the number of properties sold in 2016 is again
much lower than it was in the Nineties. My statistics show…
|
The Total
Number of Property Sales Per Annum in Warrington
Borough Council Area Since 1995
|
||||||||||
|
1995
|
1996
|
1997
|
1998
|
1999
|
2000
|
2001
|
2002
|
2003
|
2004
|
2005
|
|
2,937
|
3,685
|
4,065
|
3,858
|
3,898
|
3,855
|
4,121
|
4,711
|
4,776
|
4,467
|
3,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
|
4,918
|
5,073
|
2,486
|
2,026
|
2,193
|
2,143
|
2,225
|
2,796
|
3,345
|
3,333
|
3,364
|
Even though we are not anywhere
near the post credit crunch (2008 and 2009) low levels of property sales, the torpor
of the Warrington housing market following the 2016 Brexit vote has seen the
number of property sales in Warrington and the surrounding local authority area
level off to what appears to be the start of a new long term trend (compared
the Noughties).
Interestingly, it was the 1980’s
that saw the highest levels of people moving home. Nationally, everyone was
moving on average every decade. Even though it was during the Labour administration
of the late 1970’s where the right to buy one’s council house started, it was
the Housing Act of 1980 that that really got council tenants moving, as Thatcher’s
Tory government financially encouraged council tenants to buy their council-rented
homes - for which countless then sold them on for a profit and moved elsewhere.
The housing market was awash with money as banks were allowed to offer
mortgages as well as the existing building societies, meaning it made it simpler
for Brits to borrow even more money on mortgages and to climb up the housing
ladder.
But coming back to today, looking
at the property sales figures in the Warrington area since 2010/11, a new trend
of number of property sales appears to have started. Interestingly, this has
been mirrored nationally. The reasons behind this are complex, but a good place
to start is the growth rate of real UK household disposable income, which has
fallen from 5.01% a year in 2000 to 1.68% in 2016. Also, things have deteriorated
since the country voted to leave the EU as consumer price inflation has risen
to 2.7% per annum, meaning inflation has eaten away at the real value of wages
(as they have only grown by 1.1% in the same time frame).
With meagre real income growth,
it has become more difficult for homeowners to accumulate the savings needed to
climb up the housing ladder as the level of saving has also dropped from 4.26%
of household income to -1.11% (i.e.
people are eating into their savings).
Next week I will be discussing how
these (and other issues) has meant the level of Warrington people moving home
has slumped to once every 16 years.
If you find yourself passing our office then pop in (the kettle is always boiling). We have plenty of free parking available and I’ll even get the ‘posh’ biscuits out.
Our office address is based at 6, Bankside, Crosfield Street, WA1 1UP. Many of my blog readers also email me with RightMove , Zoopla or On The Market links to look at and offer a second opinion so if that’s more convenient my email address is manoj@hamletwarrington.co.uk
Our office address is based at 6, Bankside, Crosfield Street, WA1 1UP. Many of my blog readers also email me with RightMove , Zoopla or On The Market links to look at and offer a second opinion so if that’s more convenient my email address is manoj@hamletwarrington.co.uk
Don't forget to visit the links below to view back dated deals and Warrington Property News.
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