Nuneaton house prices up or Nuneaton house prices down? … and if so, by how much? This was the question asked to me by one of our landlords yesterday. A very good question indeed. He was hoping my crystal ball would point him in the right direction with regards to whether further investments in the Nuneaton property market would make sense this year.
The average Nuneaton terrace property is 6.8% higher today than it was a year ago, which doesn’t sound a lot, but when you consider inflation is currently running at -0.1% (ie consumer/retail prices are dropping) and average salary growth is only around 2.5% pa, this is bad news for first time buyers as property affordability continues to decrease (although I was reading in The Times the other day that wage inflation (ie salary growth) is showing signs of weakening).
Some of the ‘experts’ have said the higher stamp duty taxes announced a few weeks ago in the Autumn Statement for buy to let landlords, shows concern for first time buyer affordability and the outlook of UK interest rate rises in 2016 will really dampen the property market. I believe the real issue in the Nuneaton property market is the shortage of property to buy, as people either worry there will be no suitable house to move to, or cannot afford to upgrade. However, on the supply side, Mr Osborne said in his Autumn Statement that he will change the planning laws to ensure the government meets the pledge made at the General Election (back in May) of 200,000 new homes a year. All I can say is .. good luck George hitting those numbers!
Why? Because houses take years to build .. not months .. so George and his fabled house building aside …. where does that leave us in Nuneaton in 2016?
Well, talking of supply … whilst Mr Osborne builds his properties (and let’s be honest – a week doesn’t go by without him being filmed on a building site with a high viz jacket and hard hat building a house here and there!), let us look at the shortage of properties for sale. Back in September 2010, 47 properties were for sold in Nuneaton .. September 2015 that figure was 36!. On the face of it, this means there is less choice for Nuneaton buyers – but it also means with a restricted supply of properties for sale( baring in mind that in July 2015 71 properties sold in Nuneaton) .. I don’t think this is a reflection of house prices being too high, I think its purely because more and more people and thinking it’s a far better idea to hold onto to their properties and use them as rentals than it is to sell, especially with the predictions for Nuneaton and how house prices are forecasted to boom over the next 18 months, if you have read my previous blogs you will know why this is.
So, back to the question everyone is asking …. What will happen to property values in Nuneaton in 2016? I am going to suggest they will rise between 6.5% and 7.5% … nothing out of the ordinary, but unless something disastrous happens in the world, 2016 will be like 2015! For more thoughts, opinions and views on the Nuneaton property market .. visit the Nuneaton Property Blog www.nuneatonpropertyblog.com or give us a call and we would more than happily share our knowledge with you:02477 674545