Hale's Housing Market: where Hale people are moving
Hale homeowners have benefitted from sizeable property rises in the last decade, but are these hikes now coming to an end? We take a look.
Major national publications splash headlines filled with pessimism about the UK housing market, citing issues such as buyer affordability caused by challenges with average salary growth not keeping up with inflation, higher interest rates also hitting buyer affordability, and the hangover of the pandemic making recruiting people hard work. However, these gloomy projections don't seem to resonate with the fact that Hale's property market activity in the past year closely mirrors that of 2017/18/19.
But these gloomy projections don't seem to resonate with the fact that the Hale property market activity in the past year closely mirrors the levels we saw in 2017-19.
This divergence might hint at the age-old notion: 'bad news sells newspapers'
To paint a clearer picture, let's delve deeper into Hale's property market nuances, focusing on the demographics of movers and their motivations.
During the past year, most of the property sales in Hale were terraced properties - selling for an average price of £534,850 – while detached properties sold for an average of £1,134,510, with semi-detached properties fetching £745,620.
A closer look at Hale's homeowner sector in the last 12 months of housing data reveals the following...
- 159 Hale households moved within the same ownership sector, implying they sold their home to purchase another.
- 37 Hale households ended and exited home ownership (i.e., moved in with family, moved to a care home or sadly passed away).
- 40 Hale households shifted from owning to private renting.
- 4 Hale households moved from home ownership to social housing (i.e., Council Housing or Housing Association).
- 85 Hale households shifted from private renting to homeownership.
- 86 new Hale homeowner households emerged, transitioning from residing with family or friends to buying their first property without experiencing the private rental sector.
Despite the relentless negative depiction from the media about the property market, it's heartening to witness a robust influx of Hale first-time buyers securing their own homes.
Remarkably, 86 of these newcomers have moved from family or friends into homeownership, showcasing the enduring spirit of people wanting to buy their home. Additionally, 85 households have transitioned from the private rented sector, demonstrating a genuine aspiration among tenants to achieve homeownership.
This trend underscores the resilience and adaptability of aspiring homeowners amidst challenging times.
But what does this data spell out for Hale's buy-to-let landlords?
On the surface, with 85 households moving from private rentals to homeownership and 40 moving the other way, there seems to be a slight contraction in the private sector.
While the number of British landlords, according to capital gains tax receipts, selling up has increased by around 45% in the last year compared to pre-pandemic levels, the number of landlords buying buy-to-let is only 19% down.
Another positive headline that escapes the news is the 177,000 new rental property households that are being created every year.
So where are the opportunities for Hale landlords?
A golden opportunity for Hale's property investors lies in the properties that went up for sale last year due to owners passing.
These homes are, more often than not, maintained over several decades by older owners and feature high-capital improvements such as double-glazing or central heating. They may, however, lack contemporary aesthetics and occasionally have outdated decor or out-of-style fixtures from the 1980s and 90s.
Because of the above, these properties often come at lower after being overlooked by many buyers due to ‘dated’ appearances. A smart investment in renovating one – or more – of these properties could lead to handsome profits on resale.
Remember, it's imperative to put things in perspective. Regardless of global events - whether it's post Brexit, post Pandemic, potential political shifts in the US or China, interest rates or stock market dynamics - Hale's property market remains robust in the mid to long-term framework.
Even as we witness minor value corrections in the upcoming 12 to 18 months, history has shown that property prices bounce back, often with greater momentum.
This underscores the timeless advice to those venturing into the property market, be it first-time buyers, landlords, or homeowners: property is a marathon, not a sprint.
Commitment to the long haul invariably yields rewards, a philosophy that can be applied universally don’t you think?