Local Property Market: 2011-2021
A look back at the local housing market over the last decade…
With all of us completing the Census a couple of weeks ago, it made me realise profoundly that mine and my family’s life, which from our own point of view seems unique and delightful, makes us all into a series of statistics for the Census gatherers to pore over. To digest and regurgitate facts, figures and trends for those who are interested in the ever-changing social circumstances of these islands.
However, the information from the Census is vital to improving our lives - Governments can plan the future with the information it provides and we in turn can wonder about the lives of our past generations with the information provided therein historically if we so wish.
Whilst the information from this Census won’t be published until March 2023, let us have a look at what has been happening in the Rayners Lane property market since the last time we completed the Census in 2011.
Just to remind you, 2011 saw the wedding of Prince William and Kate Middleton, Mr Cameron was the PM, there was the last flight of the Space Shuttle and Game of Thrones premiered.
Whilst in the local property market…
· The average price paid for a detached home in the last 12 months has been £730,800. The average value of a detached home has risen by 45.8% in the last 10 years or £219,600
· The average price paid for a semi-detached home in the last 12 months has been £533,900. The average value of a semi-detached home has risen by 44.4% in the last 10 years or £171,000
· The average price paid for a town house/terraced home in the last 12 months has been £494,600. The average value of a town house/terraced home has risen by 45.8% in the last 10 years or £167,900
· The average price paid for an apartment/flat in the last 12 months has been £304,200. The average value of an apartment/flat has risen by 23.6% in the last 10 years or £52,400.
New properties built locally…
Irrespective of any dip in local house prices or transactions when the Stamp Duty Holiday ends in the autumn, this is a trend that looks set to continue, with no sign that supply of new homes is anywhere near to keeping pace with demand for households.
There have only been 794 new properties built locally in the last 10 years, that’s less than 7 a month. That means the population has risen by 2.48 people for every new home built over that decade.
Nationally, the Country has only built just over 180k homes a year over the last decade, 120k less than the national target of 300k. In the meantime, the population has grown by more than 4 million.
When looking locally at the size of new build property locally, the average property is just around 750 sq. ft., which is 1% larger than a decade ago.
Rents locally…
Whether you are a winner or loser in terms of rental values depends on whether you are a landlord or a tenant.
The average rent for a property locally currently stands at £1,287 per month, whilst a decade ago, it was £1,013 per month
This means private rents have increased by £2.28 a month for the past ten years. Interesting, when compared to the national average of 98p a month whilst in London, on average rents have grown by £4.64 a month.
The next 10 years of the local Property Market…
The next ten years will also be just as fascinating. To try and predict would be a fool’s game.
For example, who would have believed what the local property market has done in the last 12 months since the start of Lockdown 1.0. The number of transactions (i.e. people moving) in turn with UK house prices having risen so much in the last year ... all during a worldwide pandemic and at a time of such mayhem and havoc in the UK and world economy, is nothing short of remarkable … the question is – is it sustainable?
Read these articles in the coming months and years and I will share with you what is happening to the value of your property, be you a homeowner or landlord.