The ‘Liquorice Allsorts’ Solihull Property market

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.