April Fools Day was no joke for
some landlords, as they rushed their buy to let property purchases through to
complete by the end of March, in order to beat the extra 3% stamp duty George
Osborne was imposing on second homes after the 31st March 2016. Speaking
to fellow property professionals in Solihull we have all noticed following the
increase in sales going through in March, demand to buy in April and May from
landlords has eased.
Then we have the Brexit issue, which is also having a
tempering effect on the Solihull property market and whilst an exit will have
an effect, it won’t be the end of the world as some commentators are
suggesting. In an article I wrote previously, I wrote about the growth rate of Solihull
property values and whilst the rate of growth is slowing, Solihull property
values are still 6.4% higher year on year. Albeit the growth rate month on
month has started to moderate when compared to the heady days of 2014 and 2015.
Interestingly a very recent members survey of the Royal Institution of
Chartered Surveyors states that only 17% of members believed property values would
increase over the next Quarter compared to 44% at the end of 2015.
In the B92 postcode, which mainly comprises of Olton,
Elmdon, Bickenhill and Hampton-in-Arden, there were 224 properties for sale in December. In January, February and
March, 261 properties came onto the market in the postcode district, meaning by
end of the first Quarter, there were 271 properties available for homeowners
and landlords alike to buy in B92.These figures are mirrored in neighboring
postcodes throughout the Solihull area.
I believe this easing of the Solihull property market is a
good thing, as investment landlords won’t have to over the odds to secure a
property because of the reduced competition. You would expect this easing to be
bad news for the 101,762 Solihull homeowners but nothing could be further from
the truth. The majority of homeowners that move, move up market, (i.e. from a flat to terrace/town house, then
a semi and then detached), so whilst last year you will have achieved an
excellent figure for your property, you will have had to have pay an even
higher price to secure the one you wanted to buy. This illustrates the swings
and roundabouts of the Solihull Property Market!
However, all the signals suggest that whatever the aftermath
of the approaching EU referendum, in the long term the disparity between demand
for Solihull property and the supply will still exercise a sturdy and
definitive influence on the Solihull property market. It would surprise me that
if by 2021, whichever way we vote in late June, assuming we don’t have another
credit crunch or issues like a major world conflict, property prices will be
between 20% to 22% higher than they are today.
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