The combined value of Loughborough’s
housing market has risen by £35,406,423 in the last 9 months, meaning the
average value of a Loughborough property has increased in value by an average
of £1,937.
This is great news for Loughborough
homeowners and Loughborough buy to let landlords as property prices have risen
despite a slight hesitation in the market because of the uncertainty over
Brexit. As I have always said, investing in Loughborough property, be it for you
to live in or as a buy to let investment, is a long-term game.
The latest survey from the RICS showed that nationally the number of properties
actually selling has dropped for the 16th month in a row. Locally, in Loughborough,
certain sectors of the market are matching that trend,yet others aren’t. It
really depends which price band and type of property you are looking for, as to
whether it’s a buyers or sellers market.
The RICS also said that its member’s
lettings data showed a lower number of rental properties coming on to the
market. Anecdotal evidence suggests that (and this is reflected in the recent
English Housing Survey figures) Loughborough tenants over the last few years
are remaining in their rental properties longer meaning that there are less properties coming onto
the market for rent. I have noticed locally, that where the landlord has gone
the extra mile in terms of decoration and standard of finish, this has
certainly helped push rents up. Having said that, those properties where the landlord
has been remiss with improvements and standard of finish are in fact seeing
rents drop. Loughborough tenants are becoming more particular– but will pay top prices for quality. So much so, I believe there will be a cumulative rise of around
fourteen to sixteen per cent over the course of the next five years in private
rents for the best properties on the market.
Back to the Loughborough property values though …The fact is, that over the
last 9 months, 579 properties have sold for a combined value of £126,852,531. Nine months ago,
the total value of Loughborough property stood at £4,470,513,309 (£4.47bn),
and today it stands at £4,505,919,732 (£4.51bn).
Of course, the situation in Korea, the Middle East and the negotiations with Brexit can all have an impact on the current market. But in the meantime, the on-going challenges ensuring we as a Country build
more homes (although the Office of
National Statistics figures released in July showed nationally that the number of new homes started to be built over the
second Quarter of 2018 had dropped dramatically)
makes me think that the Loughborough (and nationally) property value is likely to maintain
an upward trajectory as we go into 2019.
Two final thoughts, firstly
for all the buy to let landlords in Loughborough (and indirectly this does
affect all you Loughborough homeowners too). I do hope the tax changes
towards buy to let landlords don’t bite as deep as it is possibly starting to
with certain landlords I know. We talked
about this in an article previously and I know why the Government wanted to
change the balance by taxing landlords and providing a lift for first time
buyers .. however, this may well come at the expense of higher rents for those Loughborough
tenants that don’t become first time buyers, as the appeal of buy to let potentially
weakens. Secondly, even though
values have increased, realistic pricing (i.e. the asking price) is still the
key to achieving these figures… so if you are considering selling in the next 6
months – please bear that in mind.
For more thoughts on the Loughborough Property market, and for great Buy to let deals, irrespective of which agent is selling the property, please feel free to call us on 01509 260777 or email me for more details.
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