Tuesday, 18 October 2016

House Prices in Aylesbury rise by more than 22% in the last 18 months

Over the last month, the Aylesbury property market has seen some interesting movement in house prices, as property values in the Aylesbury Vale District Council area rose by 1.7% in the last month, to leave annual price growth at 16.9%. This compares well to the national figures where property prices across the UK saw a monthly uplift of 0.42%, meaning the annual property values across the Country are 8.3% higher. This is all despite the constraining factors of Stamp Duty changes in the Spring and more recently the impact of our friend Brexit. 

The figures for the last 18 months are 22.1% higher, again thought provoking when compared to the national average figure of 13.6% higher (figures from Land Registry). 

It gets more interesting still when we look at how the different sectors of the Aylesbury market are performing. Over the last 18 months, in the Aylesbury Vale District Council area, the best performing type of property was the semi, which outperformed the area average by 0.64% whilst the worst performing type was the apartment, which under-performed the area average by 1.61%.
Many of you are used to me bleating on to buy houses over apartments!
Now the difference does not sound that much, but remember two things, this is only over eighteen months and the gap of 2.2% (the difference between the semi at +0.64% and apartments at -1.61%) converts into a few thousand pounds disparity, when you consider the average price paid for a semi-detached property in Aylesbury itself over the last 12 months was £308,800 and the average price paid for an Aylesbury apartment was £170,500 over the same time frame.
I know all the Aylesbury landlords and homeowners will want to know how each of the property types have performed, so this is what has happened to property prices over the last 18 months in the area...
·         Overall Average          +22.1%
·         Detached                     +22.2%
·         Semi Detached            +22.9%
·         Terraced                      +22.4%
·         Apartments                 +20.2% 

So what does all this mean to Aylesbury homeowners and Aylesbury landlords and what does the future hold?   

When I looked at the month-by-month figures for the area, you can quite clearly see there is a tempering of the Aylesbury property market over these last few months. I have mentioned in previous articles that the number of properties on the market in Aylesbury has increased this summer, something that hasn’t happened since 2008. Greater choice for buyers means, using simple supply and demand economics, that top prices will not be achieved on every Aylesbury property. Some of that growth in Aylesbury property values throughout early 2016 may have come about because of a surge in house purchase activity as an indirect result of the increase in stamp duty on second homes from April, thus providing a temporary boost to prices.  

Much of the current pause in the market has been caused by agents and sellers pricing property too high anticipating that the rising market will continue forever. Those same agents are proving slow to react to the changing market. 

However, it may be possible the recent pattern of robust employment growth, growing real earnings and low borrowing costs will tilt the demand/supply seesaw in favour of sellers and exert upward pressure on prices once again in the quarters ahead.
As always if you are looking to buy and need sensible advice on the price you need to pay or the best achievable rent please get in touch ian@mortimersaylesbury.co.uk