Do cheaper properties make better investments in Solihull?

Prices up, prices down, prices stable.. the newspapers are full of good news, bad news and indifferent news about the Brit’s favourite subject after the weather .. the property market. The thing is the UK does not have is a single housing market. Instead, it is a patchwork of mini property markets all performing in a different way.  At one end of scale is London, which has seen average prices grow in the last twelve months by a shade under 19% -whilst Wales only saw a 2% increase in property values (although in the Merthyr Valleys they dropped by over 11%).

While the Bank of England warned of the growing London property price bubble in the Spring of 2014, even talk of a recovery in some areas was premature. In 2015, irrespective of where you are in the UK, one story will unite the patchwork quilt of markets –  really slow property value growth.

But what about Solihull? Well, we haven’t had the February figures from the Land Registry yet but the last few months’ activity and prices achieved would suggest neither house price growth nor drops (since most sellers are buyers anyway, if you need to take less for yours, in theory you won’t have to pay as much for the one you want to buy). This is even better for landlord investors, as they often have more bargaining power and can purchase with no mortgage.

Perhaps a question we could be asking then; is not only is what happening to property prices, but which price band exactly is selling? I like to keep an eye on the property market in Solihull on a daily basis because it enables me to give the best advice and opinion on what (or not ) to buy. 

If you look at Solihull and split the property market into four equalled sized (into terms of households) price bands. Each price band would have around 25% of the property in Solihull, from the lowest in value (the bottom 25% ) all the way through to the highest 25% (in terms of value).  Over the last two months, in the lowest quartile, (those with asking prices under £170k) 189 properties have come onto the market in Solihull and 33.8% of them (64 properties have a buyer and sold subject to contract. The next quartile, between £150k-£270k, of the 313 properties that came on to the market, 41.8% of them (131 properties) have a buyer. The £270k - £450k price range has seen 251 properties come on to the market, and 40.23% of the properties have a buyer (101properties). The most expensive 25%, the £450k plus range, has seen 64of the 208 properties that came on to the market find buyers (30.7%).   Pretty fascinating as most would not necessarily expect that higher priced properties would move so fast!

The next three months’ activity will be crucial in understanding which way the market will go this year and I honestly believe we will not see any house price growth or drops this side of the election. And why? Because of Britain’s chronic lack of housing will prop up house prices and prevent a post spike crash. ... there is always a silver lining when it comes to the property market!