Despite the UK economy heading in the right direction with record low mortgage rates and unemployment figures dropping, the rate of property prices rising in Aylesbury has slowed since the start of the year. Property value increases continue to outpace the growth in salaries, however the gap is closing, helped by a lift in salaries over the last 6 months. Property values in the South East region as a whole are 9.1 higher than a year ago. Compare this to the neighbouring regions of the South West at 3.6% higher and West Midlands at 3.5%, the majority of the country continue to see annual house price gains - the exception being Wales which recorded a slight decline of -0.6%.
Even with the tempering in house price inflation, it does
not necessarily change my outlook that property prices are likely to be firmer
over the second half of 2015 amid heightening activity in the Aylesbury
property market. As stated in a previous
article, there is a current shortage of properties on the market, restricting
supply, which in turn will provide stability and support to Aylesbury property
prices. Therefore, my overall opinion is that Aylesbury property prices will
rise by 6% over 2015 and roughly the same in 2016.
Property investment is a long term business. Buying the right sort of property is
vital. I have recently been speaking
with a number of Aylesbury landlords about the importance of a balanced
portfolio, when buying and renting out property. The balance between buying properties that
offer good monthly returns (high yields) but quite often offer poor capital
growth (i.e. they don't increase in value that much over the years compared
with the average) versus properties that do go up in value quicker but often
offer a lower yield. So, what type of
properties have performed best over the last few years in Aylesbury, especially
in terms of their capital growth?
Compare the average price of detached, semi-detached,
terraced and flats back at the start of the Millennium to the present. The results are quite remarkably different,
almost like a bag of Liquorice Allsorts, as the different types of property
have performed poles apart over the last 15 years:
Detached Houses
in 2000 were selling on average for £185,751 and so far in 2015, they have been
selling on average in Aylesbury for £337,438, a rise of 82%
Semi -Detached Houses
in 2000 were selling on average for £105,512 and so far in 2015, they have been
selling on average in Aylesbury for £247,606 a rise of 135%
Terraced Houses
in 2000 were selling on average for £86,303 and so far in 2015, they have been
selling on average in Aylesbury for £218,941 a rise of 154%
Flats and Apartments
in 2000 were selling on average for £61,047 and so far in 2015, they have been
selling on average in Aylesbury for £140,165 a rise of 130%
What should new and existing buy to let landlords do with
this information? Well, the questions I
seem to be asked on an almost daily basis by landlords are:
“Should I sell my property in Aylesbury?”
“Is the time right to buy another buy to let property in Aylesbury
and if not Aylesbury, where?”
“Are there any property bargains out there in Aylesbury to
be had?”
Aylesbury landlords, who are letting their property both
with us and other Aylesbury letting
agents, like to pop in for a coffee,
pick up the phone or email us to
discuss the Aylesbury property market, how Aylesbury compares with its
closest rivals (Leighton Buzzard, Luton and Tring), and hopefully answer the
three questions above. I don’t bite, I
don’t do hard sell, but I will give you my honest and straight talking opinion
and look forward to hearing from you. 01296 398555 ian@mortimersaylesbury.co.uk
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| Did someone mention Liquorice Allsorts? |
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