So, let’s look at the Aylesbury property market...
In the last month, Aylesbury property values dropped
by 0.08%, leaving them, year on year 13.69% higher, whilst interestingly, Aylesbury
asking prices are down 2.0% month on month. All three statistics go to show the
Aylesbury property market has recovered well after the summer lull, which was
worsened by the uncertainty surrounding the EU vote back in June. Irrespective
of all the issues, the average value of an Aylesbury home now stands at £379,500.
Generally, Aylesbury asking prices continue to
hold up well, as asking prices are 4.7% higher year on year. At this time of
year, asking prices tend to drop on the run up to Christmas and locally, they
had dropped by 2.0% last month (November 2016), although this compares well
with last year’s drop in Aylesbury asking prices, as we saw asking prices drop by
1.1% in November 2015.
After chatting with fellow property professionals
in Aylesbury, all of us have seen the number of property sales fall slightly,
suggesting a slowing market. However looking at what our own sales team have
done in December so far, they have seen much improved results when comparing
with previous years.
The numbers are limited, so it’s interesting
to take note from a recent survey by the Royal Institution of Chartered
Surveyors, stating new buyer enquiries and new instructions are falling at the
same rate, suggesting that there will not be a downward pressure on property
values.
Looking at the
figures for the UK, property values are generally rising slower than a few
years ago, but on a positive note, there's still growth across the UK. You see, slowing property value growth isn't solely
Brexit related, but after a number of years of double digit rises in property
values, affordability has weakened and cooling price growth is widely
seen to be a natural correction of the market.
On the other
hand, interest rates being at a record low of 0.25% are helping the property market. The cut in interest rates in the late summer was the medicine
for the post-Brexit worry and will, as a consequence, ensure that the UK
economy continues to be underpinned by buoyant property prices.
So, what will happen in 2017 in the Aylesbury
property market?
Some say until we know what type of exit the
UK will make from the EU it is hard to evaluate the outcome. Although, I
believe, the whole Brexit issue is a sideshow to the main issue in the UK (and Aylesbury)
housing market as a whole. As I have mentioned time and time again over the last
few months, the biggest issue is demand outstripping supply when it comes to
the number of households required to house us all. Aylesbury has an ever-growing
population: with immigration (we still have at least two years of free movement
from EU members into the UK), people living longer and the fact we need thousands
of additional households as the country has nearly 115,000 divorces a year
(where one household becomes two households).
As always, you can find me in my Temple Street
office and I welcome your thoughts when you are next in town. Ian@mortimersaylesbury.co.uk
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| I'm looking forward to Christmas Turkey. |
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