Measuring commuting distance might seem a little obscure but it actually offers a particularly good insight into the character of any local housing market. For example, commuter towns tend to really come alive at the weekends but are quieter in the week. Areas where most people work locally will have a stronger community feel day-to-day.
It won’t come as any massive shock that houses are generally worth more than flats in our area. However, when it comes to the movements over time, these two broad types of property do not always behave similarly. Here we see how flats and houses have varied in price.
The property market fluctuates on a seasonal basis, and this is particularly the case for sales rates. This chart shows how the market has changed over the course of the last few months. The most recent periods are estimates based on the previous year’s pattern.
As you’re no doubt aware, there’s a lot of doom and gloom surrounding the national property market at the moment. For example, the Nationwide index showed that in June, annual house price growth had slowed to a five-year low. Our area hasn’t been immune; in the first quarter of 2018, there were 25.5 per cent fewer sales than the same period in the previous year.
The Bank of Mum and Dad is set to aid over 316,000 house purchases this year, although at £5.7 billion the total value of their lending is set to be down 17% on 2017 according to new research by Legal and General and CEBR
The split of the population by age group has a big effect on the local housing market; the demographic profile affects prices, but more importantly the tenure mix and the rates of sales. The patterns you can see here gives you a good insight into the profile of local residents.
The rate at which properties are sold in the market is probably the best indicator of what we in the trade call ‘buoyancy’. In this chart, we show the number of properties which have been sold each year since 2008.
In the residential property world, the most important macroeconomic indicator we’re obsessed with is interest rates. Interest rates are the main tool the government uses to cool down the market when it shows signs of overheating. They have a massive impact on the housing market because they determine what your mortgage costs every month.
A petition has been launched on the Government website demanding the reintroduction of full mortgage interest relief for private landlords, and the dropping of the 3% Stamp Duty surcharge when additional properties are bought.
It alleges that both measures had increased homelessness by driving landlords out of the sector.
The petition, which runs until November 14, was launched earlier this month and has already attracted over 11,500 signatures which means the government must respond.
It says: “We call on the Government to reintroduce full mortgage interest relief and to drop the 3% Stamp Duty surcharge which is increasing homelessness by driving many landlords out of the sector, meaning tenants have less choice and higher rents.
“There will still be a continuing growth in demand for housing and a significant part of this will have to be available through private landlords.
“It is time to review the tax changes on buy-to-let landlords. It’s clear that the availability of rental property has decreased and rents have risen markedly.
“We call for policy change to end these disastrous tax policies which cause such profound suffering.”
The petition is launched by Mark Homer, one half of property investor training organisation Progressive Property.