Well, wasn’t 2016 eventful. The ups and downs of the Queen’s 90th, Brexit, Andy Murray winning Wimbledon, Trump, Bake Off to Channel 4 and something close to the hearts of every buy to let landlord and homeowner in Teddington… the Teddington Property Market. So, let’s look at the headlines for the Teddington Property Market.
In December, Teddington property values dropped by 0.63%. This still leaves them 5.71% higher than they were last year though and, interestingly, Teddington asking prices are up 2.1% month on month (although Teddington terraced houses, seeming to be bucking that trend, are in fact 3.6% down). All the statistics go to show the Teddington Property market has recovered 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 a Teddington home now stands at £847,300.
Now it’s true to say, after chatting with fellow Property Professionals in Teddington, all of us have seen the number of property sales fall slightly, suggesting a slowing market, but it is early days and it could be the time of year. Also, the numbers are limited, so it’s interesting to note a Royal Institution of Chartered Surveyors survey from a few weeks ago which stated that new buyer enquiries and new instructions are falling at the same rate. This is a good thing as it is suggesting that there will not be a downward pressure on property values.
Looking at the figures for the UK (as we can’t just look at Teddington in isolation), property values are generally rising slower than a few years ago, but on a positive note, there’s still growth across the UK. 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, with interest rates at a record low of 0.25%, these 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 Teddington 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 side show to the main issue in the UK (and Teddington) housing market as a whole. As I have mentioned time and time again over the last few months, the biggest issue is that demand is outstripping supply when it comes to the number of households required to house us all. Teddington 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. Let alone the fact that as a country we have nearly 115,000 divorces a year (where one household becomes two households). These are interesting times ahead!
I am a property investor myself and so would be happy to help anyone looking to get into property investment. I never charge for a chat over a coffee! Please drop me an email at firstname.lastname@example.org – I’d love to hear from you!