A slight drop in property values in Burton…

Property values in Burton fell by 0.4% in March. This follows several months of sluggish activity in the Burton property market in the run up to the Election, putting the average price of a property in Burton at £170,500, 2.7% higher than in March 2014. Despite the not so insignificant fall in March, the figures showed prices were still slightly higher in the first quarter of 2015 than in the last quarter of 2014.

Also, reports from Council of Mortgage Lenders and Estate Agent trade bodies over the last few months have seen a fall in mortgage lending and enquiries from prospective homebuyers. This is important because it comes amid an overall fall in housing market activity in Burton. Data from Land Registry said completed house sales in Burton in the three months to January 2015 - the most up to date figures available - fell by 13.35% compared to the same three month period up to January 2014.

However, I believe that the slowdown in property sales in Burton is supporting Burton property values, as there is a shortage of houses coming onto the market. Even though in the whole of the first Quarter of 2015, Burton property value increases may seem subdued when compared to 2014, let us remember, property values are still rising well above the level of inflation.

As I have said many times before, the population in Burton is growing at much higher rate than the number properties being built. This surplus in demand, which is outpacing the supply of new houses being built in Burton, has created a long term imbalance in the Burton (in fact the whole of UK’s) housing market, thus making home ownership a more distant dream for many Burton potential first time buyers.

In fact, I still maintain the view that house prices are likely to rise by around 3% in Burton in 2015, even after taking into account this blip at start of the year. The reason being is that rise reflects both a strong economic conditions and steady market conditions, with - and this is the most important factor - very low numbers of properties on the market.

Many buy to let landlords know that investing in the Burton property market is a long term strategy of 10, 20 even 30 years. Governments come and go, but unless East Staffordshire Borough Council start to build hundreds of properties a year to make up for the lack of supply, Burton people will always want a roof over their head, and irrespective of which party is in power, if there aren’t any council houses and they can’t or are unable to buy, there will always be a demand for rental properties.

As my existing Burton landlords clients will testify, whether you manage your property yourself, or another Burton agent manages your properties, everyone is always made to feel welcome when they pop in for a coffee to discuss anything to do with the Burton property market, how Burton compares with its closest rivals and hopefully answer the three questions above. I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion.

You can email me;

davidm@professionalproperties.co.uk

Or you can call me on 07973 666229!