The combined value of Stoke on Trent’s housing market has
fallen by £5,068,686 in the last 6 months, meaning the average value of a Stoke
on Trent property has decreased in value by an average of £651.
This is great news for Stoke on Trent first time buyers and Stoke
on Trent buy to let landlords, as there is a slight hesitation in the market
because of the uncertainty over Brexit. As I have always said, investing in Stoke
on Trent property, be it for you to live in or as a buy to let investment, is a
long-term game. In the grand scheme of things, this minor change over the last
5 or 10 years is nothing.
The RICS’s latest survey of its Chartered Surveyor
members showed that nationally the number of properties actually selling has
dropped for the 16th month in a row. Locally in Stoke on Trent, certain sectors
of the market are matching that trend, yet others aren’t. It really depends
which price band and type of property you are looking for, as to whether it’s a
buyers or sellers market.
The RICS also said its member’s lettings data showed a lower
number of rental properties coming on to the market. Anecdotal evidence
suggests that (and this is born out in the recent English Housing Survey
figures) Stoke on Trent tenants over the last few years are stopping in their
rental properties longer, meaning less are coming onto the market for rent. I
have noticed locally, that where the landlord has gone the extra mile in terms
of decoration and standard of finish, this has certainly helped push rents up (although
those properties where the landlord has been remiss with improvements and
standard of finish are in fact seeing rents drop). Stoke on Trent tenants are
getting pickier – but will pay top dollar for quality. So much so, I believe
there will be a cumulative rise of around fourteen to sixteen per cent over the
course of the next five years in private rents for the best properties on the
market.
Back to the Stoke on Trent Property Values though …
This slight drop in Stoke on Trent property values doesn’t
particularly concern me. The fact is that over the last 6 months 1,689
properties have sold for a combined value of £233,541,408. You see, that
drop must be seen in perspective in that 6 months ago, the total value of Stoke
on Trent property stood at £1,151,004,380 (£1.15bn), and today it stands at £1,145,935,694 (£1.14bn) .. this change is a drop in
the ocean.
In the short term, say over the next six months and assuming
nothing silly happens in Korea, the Middle East or Brexit negotiations, it will
be more of the same until the end of the year. In the meantime, the on-going
challenges ensuring we as a Country build more homes (although the Office of National Statistics figures released in July
showed nationally the number of new homes
started to be built over the second Quarter of 2018 had dropped dramatically) makes me think that Stoke
on Trent (and Nationally) property value is likely to recommence an upward trajectory
as we go into 2019.
One final thought for all the buy to let
landlords in Stoke on Trent (and indirectly this does affect all you Stoke on
Trent homeowners too). I do hope the recent tax changes towards buy to let
landlords don’t bite as deep as it is possibly starting to with certain
landlords I know. We talked about this
in an article a few weeks ago and I know why the Government wanted to change
the balance by taxing landlords and providing a lift for first time buyers ..
however, this may well come at the expense of higher rents for those Stoke on
Trent tenants that don’t become first time buyers, as the appeal of buy to let potentially
weakens.
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