Solihull Property Values rise by 2.1% month on month

Whilst in a local coffee shop, a gentleman approached me and asked if I was the person who wrote the newsletters about the Solihull property market. We ended up having an interesting chat about the local property market, as he was concerned his daughter would never be able to buy her own property.

My latest analysis, using the Land Registry and Office of National Statistics, shows that overall, month on month, Solihull property values increased by 2.1%. The year on year figures showed the value of residential property in Solihull has increased by 6.4% in the year to the end February 2016, taking the average value of a property in the council area to £221,200.

It gets even more interesting when we look at the figures from late 2015/ early 2016 and see the patterns that seem to be emerging.

·         January 2016               - a drop of 0.5%

·         December 2015          - a rise of 0.6%

·         November 2015          - a rise of 0.8%

I have talked in many recent articles about a shortfall of properties being built in Solihull over the last 30 years. This lack of new building being the biggest factor contributing to Solihull property values 163.21% higher now than in 1995. Until the Government addresses this issue and allows more properties to be built, this situation will continue as the UK population grows at just under 500,000 people a year, yet only 152,400 properties are being built per year, no wonder demand is outstripping supply.

Another reason intensifying the current level of property values in Solihull, is the fact that people aren’t moving house as much as they used to, meaning fewer properties are coming onto the market for sale. As a consequence to this there is a lack of choice of property to buy, which means people actually thinking of moving are discouraged from putting their property on the market. This unevenness between demand from would-be purchasers and the number of properties coming on to the market for sale is causing pressures in Solihull (and the rest of the UK).

So what of the future of the Solihull property market and the gentleman’s daughter? I firmly believe the property market in Solihull and the country as a whole is changing its attitude towards homeownership. Back in the 60’s, 70’s, 80’s and 90’s, getting on the property ladder was everything. Since the late 90’s, we as a country have slowly started to change our attitude on homeownership So, whatever the vote on the 23rd of June, if you think about it, we might be more European than we realise!