At
the start of 2007 there were 990 properties for sale in Warrington but by July
2008, when the credit crunch was really beginning to bite, that number had
risen to 1,850 properties on the market at a time when demand was at an
all-time low, thus creating an imbalance in the local property market.
Basic
economics dictates that if there is too much supply of something and demand is
poor (which it was in the Credit Crunch years of 2008/9) … prices will drop. In
fact, house prices dropped between 15% and 20% depending on the type of Warrington
property between the end of 2007 and Spring 2009.
However,
over the last five years, we have seen a steady decrease in supply of
properties coming onto the market for sale and steady demand, meaning Warrington
property prices have remained robust. A
stable housing market is one of the foundations of a successful British
economy, as it’s all about getting the healthy balance of buyer demand with a good
supply of properties. Nevertheless, if you had asked me a couple of years ago,
I would have said we were beginning to see there was in fact NOT enough
properties coming on to the market for sale … meaning in certain sectors of the
Warrington property market, house prices were overheating because of this lack
of supply.
So,
it is pleasing to note, looking at the recent numbers …
There are 1% more properties for
sale in Warrington today than a year ago
There
were 427 properties for sale 12 months ago, and today that stands at 432. It
doesn’t sound a lot, yet this is a small step in the right direction to a more
stable property market.
Even
better news, since the Chancellor announced the stamp duty rule changes for
first time buyers (FTB), my fellow agents in Warrington say that the number of
FTB’s registering on the majority of agent’s books has increased year on year.
That has still to follow through into more FTB’s buying their first home,
however, with the heightened levels of confidence being demonstrated by both Warrington
house sellers and potential house buyers, I do foresee the Warrington Property
Market will show steady yet sustained improvement during the first half of 2018.
What does this mean for Warrington landlords or those
considering dipping their toe into the buy to let market for the first time? Landlords
will need to keep improving their properties to ensure they get the best
tenants. It is true that demand amongst FTB’s is increasing, albeit from a low
base. Even with the new landlord tax rules, buy to let in Warrington still looks a good investment, providing Warrington
landlords with a good income at a time of low interest rates and a roller
coaster stock market.
If you are thinking
of investing in bricks and mortar in Warrington, it is important to do things
correctly as making money won’t be as easy as it has been over the last twenty
years. With a greater number of
properties on the market .. comes greater choice. Don’t buy the first thing you
see, buy with your head as well as your heart … and don’t forget the first rule
of Buy To Let Investment …..
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 G5, Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.
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