“How
much would it cost to buy all the properties in Loughborough?”
This fascinating question was posed by the 11-year-old son of
one of my Loughborough landlords when they both popped into my offices before
the Christmas break (doesn’t that seem an age away now!). I thought to myself,
that over the Christmas break, I would sit down and calculate what the total
value of all the properties in Loughborough are worth … and just for fun, work
out how much they have gone up in value since his son was born back in the autumn
of 2005.
In the last 11 years, since the autumn of 2005, the total value of
Loughborough property has increased by 45% or £1.35 billion to a total of £4.35
billion. Interesting, when you consider the FTSE100 has only risen by 30.78%
and inflation (i.e. the UK Retail Price Index) rose by 37% during the same 11
years.
When I delved deeper into the numbers, the average price
currently being paid by Loughborough households stands at £230,640.… but you
know me, I wasn’t going to stop there, so I split the property market down into
individual property types in Loughborough; the average numbers come out like
this ..
|
Loughborough
Property Market
|
|||
|
Average Value of a Detached
Property
|
Average Value of a
Semi-Detached Property
|
Average Value of a
Terraced/Town House Property
|
Average Value of an
Apartment
|
|
£344,661
|
£180,087
|
£139,098
|
£108,000
|
... yet it got even more fascinating when I
multiplied the total number of each type of property by the average value. As
detached houses are so expensive, when you compare them with the much cheaper
terraced/town houses and apartments, you can quite clearly see how valuable
detached properties are in terms of total pound note value, when compared to
the value of the terraced/town houses and apartments.
|
Total Value of all
the Loughborough Detached Properties
|
Total Value of all
the Loughborough Semi-Detached Properties
|
Total Value of all
the Loughborough Terraced/Town House Properties
|
Total Value of all
the Loughborough Apartments
|
|
£1,794,994,488
|
£1,439,255,304
|
£706,478,742
|
£412,344,000
|
So, what
does this all mean for Loughborough?
Well as we enter the unchartered waters of 2017 and beyond, even though
property values are already declining in certain parts of the previously over
cooked Central London property market, the outlook in Loughborough remains
relatively good as over the last five years, the local property market was a
lot more sensible than central London’s.
Loughborough
house values will remain resilient for several reasons. Firstly, demand for
rental property remains strong with continued immigration
and population growth. Secondly, with
0.25 per cent interest rates, borrowing has never been so cheap and finally the
simple lack of new house building in Loughborough not keeping up with current
demand, let alone eating into years and years of under investment – means only
one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in
the medium term, property ownership and property investment in Loughborough has
always, and will always, ride out the storm.
If you would like to discuss the Loughborough property market or chat about any potential investment please feel free to call me on 01509 260777 or email me james.loughborough@belvoir.co.uk
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