It finally happened! I was asked to speak to a group of landlords and property investors at a networking event in Hilton so I thought I would briefly share my topic with you.In Burton, property prices are still 6.5% below the level that was achieved in the Spring 2007 property boom (before it went pop in early 2008 with the credit crunch).
The cost of living has increased by 18% over the last seven years so if Burton people sold their properties today, the money they would get from the property would actually be 24.5% lower ( 18% inflation/cost of living + 6.5% below the 2007 boom) than if they’d sold in Spring 2008!
Average Burton house prices are in a constant state of microflux. Over the last seventeen months, the trend has been in an upward direction. The price of a typical Burton home remained stagnant in July (yet increased 0.5% in June and even increased in May by 0.4%). Looking at monthly figures in isolation can be dangerous, so I also looked at the Land Registry figures which showed that the annual rate of Burton house price growth moderated in July to 4.3%from 5.4% in June.
The slowdown was not entirely unexpected, given mounting evidence of a moderation in activity in recent months. Mortgage approvals declined by almost a fifth between January and May, and there has also been some softening in forward looking indicators, such as new buyer enquiries. But on the other side, with the labour market strengthening, landlords are looking for a home for their savings, mortgage rates are expected to remain low and with consumer confidence rising activity is likely to recover in the months ahead.
Rightmove have recently released some data on Burton and the immediate area, and they make fascinating reading. The peak of the property market last decade in Burton is recognised as Spring 2008. Whilst property values are still 6.5% lower than that boom, homeowner’s asking prices are 0.2% higher than the 2007 boom. Therefore, there is an argument to say, some (not all) Burton asking prices are a little high but the price the properties are actually selling for, is a decent and reasonable figure.
It all comes down to doing your homework, asking questions of the agent and the owners. Find out their motivation for selling and see if you can ‘bag that bargain’!
Trust me they are still out there. As we don’t sell property, I can look at the whole of the market and give you an honest opinion on its investment potential. In fact very soon, I will be starting to put on what I consider the best buy to let deals there are on to the ‘Burton Property Blog’.
If you would like to discuss my thoughts on the rental market, feel free to pop through the door of our offices on the High Street, call me on 07973 666229 or send me an email to: davidm@professionalproperties.co.uk
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