May 30, 2016
Didsbury homeowners and buy-to-let landlords in M20 should be pleased to know that prices have risen recently.
Our latest analysis of the Didsbury property market shows that month-on-month, M20 prices for flats have increased by 2.7%, whilst the year-on-year figures showed that prices for flats in M20 have increased by 13.4% in the year, taking the average price for flats in the Didsbury area to £198,600.
It gets even more interesting when we look at the last few months of 2015 and see the patterns that seem to be emerging.
• December 2015 – a rise of 2.7%
• November 2015 – no change
• October 2015 – a rise of 2.7%
• September 2015 – a rise of 3.3%
The lack of new building developments has been the biggest factor contributing to the M20 property values being 8% higher compared to 2009, and an eye watering 283% higher than in 1995.
Until the Government addresses this issue nationally, and allows more properties to be built, things will continue to get worse. The UK population grows at just under 500,000 people a year, whilst the country is only building 152,400 properties a year – no wonder demand is outstripping supply. When one looks at the local picture in M20, between the last two census’, the population in M20 grew by 5,900 people a year, yet the number of properties built was only 2,300.
We firmly believe the property market in M20 (and the country as a whole) is changing its attitude towards homeownership, which in turn will have major ramifications for the homeowners and buy-to-let landlords of M20 alike. Back in the late 20th century, getting on the property ladder was everything. However, since the late 1990’s, we as a country (in particular, the younger generation of would-be homeowners) have slowly started to change their attitude to homeownership. We are moving to a more European model, where people choose to rent in their 20’s and 30’s (meaning they can move freely and not be tied to a property), then inherit money in their 50’s when their property owning parents pass away, allowing them to buy property themselves.
Some of the highest levels of home ownership are in Romania at 96.1%, Hungary at 88.2% and Latvia at 80.9% (hardly European economic powerhouses). In Western Europe, Spain has homeownership levels at 78.8% and Greece has 74.0% (and we know the economic woes of these countries well). At the other end of the scale, whilst we in the UK stand at 64.8% homeownership (and interestingly in Didsbury is 48%), in Europe’s powerhouses, only 52.5% of Germans and 44.0% of Swiss people are homeowners.