Despite the UK economy heading in the right direction with
record low mortgage rates and unemployment
figures dropping, the rate of
property prices rising in Solihull have tempered since the start of the year.
This slow but sure downward trend in the rate of growth has been in evidence
since mid-2014. Property value increases
continue to outpace the growth in salaries, however the gap is closing, helped
by a lift in salaries over the last 6 months.
Property values in the West Midlands
region as a whole are 3.5% higher than a year ago. Compare this to the neighbouring regions of
the East at 2.9% higher and the North West at 3.4%, the majority of the country
continue to see annual house price gains - the exception being Wales which
recorded a slight decline of -0.6%.
Even with the tempering in house price inflation, it does
not necessarily change my outlook that property prices are likely to be firmer
over the second half of 2015 amid heightening activity in the Solihull
property market. As I've mentioned
before, there is a current shortage of properties on the market, restricting
supply, which in turn will provide stability and support to property prices. My
overall opinion, therefore, is that Solihull prices will rise by 5% over 2015
and roughly the same in 2016.
Property investment is a long term business, buying the
right sort of property is vital. I have recently
been speaking with a number of Solihull
landlords about the importance of a balanced portfolio, when buying and renting
out property. The balance between buying properties that offer good monthly
returns but quite often offer poor capital growth. Verses properties that do go
up in value quicker but often offer a lower yield. So, what type of properties have performed
best over the last few years in Solihull ,
especially in terms of their capital growth?
When comparing what the
average price of detached, semi detached, terraced and flats were selling for
back at the start of the Millennium to the present in Solihull, the results are quite remarkably
different. Almost like a bag of Liquorice Allsorts, as the different types of
property have performed poles apart over the last 15 years:
- · Detached Houses were selling on average for £193,184 in 2000, but so far in 2015, they have been selling for approximately £449,514 showing a rise of 133%.
- · Semi -Detached Houses were selling on an average of £117.033 in 2000 however, in 2015 figures suggest that they have been selling for close to £285,221 with a rise of 144%.
- · Terraced Houses were selling on average for £99,525 in 2000, currently in 2015, they have been selling on average for £218,077 suggesting a rise of 119%.
- · Flats and Apartments were selling on average for £115,806 in 2000 however, at this present time they are selling on an average of £220,550 giving a rise of 90%.
Moving forward, what should new and existing buy to let
landlords do with this information? Well,
the questions I seem to be asked on an almost daily basis by landlords are:
·
“Should I sell my
property in Solihull ?”
·
“Is the time
right to buy another buy to let property in Solihull
and if not Solihull , where?”
·
“Are there any
property bargains out there in Solihull to be
had?”
Many other landlords, who are
with both us and other letting agents in Solihull, like to pop in for a coffee,
pick up the phone or email us to discuss the property market, how it compares
with its closest rivals (Birmingham, Sutton Coldfield and Coventry) and
hopefully answer the three questions above.
I don’t bite, I don’t do hard sell and I will just give you my honest
and straight talking opinion and look forward to hearing from you.
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