Property Market Shift
According to a new BBC property market report there has been
a shift in the number of people buying and renting in the past 10 years. So why
has this occurred?
Here we highlight some interesting statements from the BBC report that explain how the market has changed:
The price of the average UK home has risen in the past 10 years. Prices of goods and services in general, as measured by the Consumer Prices Index measure of inflation, have increased faster. So, in real terms, the average UK house price has fallen compared with a decade ago.
However, there is a regional divide. The report reveals that price rises or falls depend on where you live. The average UK house price masks a massive regional divide. We can see from the BBC report that property prices in London have risen by 70% in the last 10 years and between 45% and 59% across our area.
The number of sales was 30% higher 10 years ago, so who is no longer buying? Many people already with a home and a mortgage have chosen to stay put, rather than buy somewhere bigger. Recent tax changes have also cut the numbers of buy-to-let investors.
There is a cost to climb the ladder. According to the report, a lack of four-bedroom family homes on the market has pushed up prices of this type of property. Instead of upsizing from a three to a four-bedroom home, families are opting to stay put and extend.
There has been a shift from owning to renting. It seems the most significant change, due to financial pressures, is that people choosing to rent rather than buy, or to continue as tenants into their 30s and 40s when they might previously have bought a home by then.
Meanwhile, the South has the lion's share of property wealth. Collectively, London property has the highest value, followed by the South East of England. Interest from buyers is still high in our area, as those in the city look to relocate to Surrey and Hampshire. There is demand for country property, especially in Haslemere, Liphook and the surrounding villages – as they provide easy access to London.
Our sales and lettings team work with property buyers, vendors and investors – all in varying situations. We understand that buying a property is a huge financial decision and for tenants, rental fees are a big monthly commitment. Our property experts are on hand to provide advice, whether you are planning to buy, sell, let or rent. Contact us today to discuss your requirements.
