There has probably been a few less properties reach the market in the last few days for obvious reasons but here’s one I’ve just had a look at…….
Check out the full details here: http://www.rightmove.co.uk/property-for-sale/property-53233620.html
I forget to mention these flats can have condensation issues but it looks like the clever owner has put a posimaster in which bring condensation issues almost down to zero! Great plus for a rental property.
How’s the Market? (in Watford)
Here’s a questions that I get asked more often than anything else. As I spend most of my time talking to landlords and investors I’ll consider my answer from their point if view which is more likely to as a buyer rather than as a vendor.
If you look at the Watford property market over last 12 months the figures from land registry show that the average house price in Watford was £359,642 in November ’16 and as of November 17 -it was £356,538. No big changes there about 0.9% less.
If you look month by month there was fluctuation with some months showing up to +1.4% increase and others showing up to -1.2% decrease. So no big monthly changes there.
From the investors point of view, your assets may not have increase in price dramatically so not the best year in the last few. However if you are looking to acquire more properties then this could be good news as prices have dipped a little and the market is not a buoyant which means there is potentially to add to your portfolio with a better deal and lower offers being considered which was definitely not the case 12 months ago pre stamp duty increase.
You only have to check your updates on rightmove to see how many price reductions there are on a daily basis and there are more than meets the eye as some local agents have turned off their ‘Reduced Price’ tag so you may not even know it’s been reduced.
So is this a good time to hold property? In the short term perhaps not but most investors tend to take a longer term view on things unless they are developing/flipping for profit. Is this a good time to buy property? My view is when isn’t a good time to buy property!
If you’re considering an investment this year but are unsure about the market and would like an impartial second opinion on your choice of property then I’d be happy to have a chat with you. You can reach me (James) on 01923 375 300.
Great opportunity for Buy To Let investors being advertised by the lovely people at Trend and Thomas. For full details jump onto rightmove – http://www.rightmove.co.uk/property-for-sale/property-52562241.html
It was late May 2016, The Right Hon. Member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating UK house prices would be lower by at least 10% (and up to 18%) by the middle of 2018 compared with what is expected if the UK remained in the European Union. So, eight months on from the Referendum, are we beginning to show signs of that prophecy? The simple answer is yes and no.
Looking at the most recent set of data from the Land Registry, property values in Watford are 1.97% down month on month (and the month before that, they had barely grown with an increase of only 0.65%) – so is this the time to panic and run for the hills?
Doom and Gloom then? Well, let me consider the other side of the coin.
Well, as I have spoken about many times in my blog, it is dangerous to look at short term. I have mentioned in several recent articles, the heady days of the Watford property prices rising quicker than a thermometer in the desert sun between the years 2011 and late 2016 are long gone – and good riddance. Yet it might surprise you during those impressive years of house price growth, the growth wasn’t smooth and all upward. Watford property values dropped by an eye watering 2.01% in July 2012 and 0.81% in November 2014 – and no one batted an eyelid then.
You see, property values in Watford are still 13.81% higher than a year ago, meaning the average value of a Watford property today is £438,400. The Office for Budget Responsibility, the Government Spending Watchdog, recently revised down its forecast for house-price growth in the coming years – but only slightly.
The Watford housing market has been steadfast partly because, so far at least, the wider economy has performed better than expected since Brexit. There is a robust link between the unemployment rate and property prices, and a flimsier one with wage growth. Unemployment in the Watford Borough Council area stands at 2,300 people (4.2%), which is considerably better than a few years ago in 2014 when there were 3,000 people unemployed (5.6%) in the same council area.
However, inflation is the only thing that does worry me. Looking at all the pundits, it will get to at least 3% (if not more) in the latter part of 2017 as the drop in Sterling in late 2016 renders our imports with higher prices. If that transpires then the Bank of England, whose target for inflation is 2%, may raise interest rates from 0.25% to 2%+. However, that won’t be so much of an issue as 81.6% of new mortgages in the UK in the last two years have been fixed-rate and who amongst us can remember 1992 with Interest rates of 15%!
Forget Brexit and yes inflation will be a thorn in the side – but the greatest risk to the Watford (and British) property market is that there are simply not enough properties being built thus keeping house prices artificially high. Good news for those on the property ladder, but not for those first-time buyers that aren’t!