What does the future hold for house prices in York?
“We expect the price of the average home here to reach £250,800 by the end of 2018.”
Our take on the changing house prices in York: There have probably never been more factors at play in the York property market than there are right now. The national market is pausing for breath as it reaches the end of the credit crunch cycle. 2016 saw stamp duty changes as well as the Brexit vote. The result of the election has added to the uncertainty surrounding the economy.
Now that Brexit negotiations are getting underway, it will be interesting to see any direct effect on the market and house prices in York. Since the original vote, interest rates were dropped to 0.25 per cent to support the economy. This has resulted in property prices rising nationally by 7.2 per cent – and we expect them to grow by a further 6.6 per cent over the next 12 months.
So why are we so bullish about the market in York?
Well the data shows us that in the second half of 2016, sales levels were 8.4 per cent lower than the first half, but this becomes positive when we strip out the impact of the stamp duty rise. Based on market trends, we expect the average house price in York to reach £250,800 by the end of 2018.
Projecting future price trends is never straightforward.
The construction of new homes impacts on this heavily. Residential developments will often increase the value of other properties in the area due to the way valuers use ‘comparables’. Upgrades to travel networks and new businesses opening in the area are also important considerations when determining the future value of property.
Rising house prices in York mean some people will inevitably choose to rent instead.. Rents have also seen increases, but typically at slower rates than property prices. Landlords tend to focus on the yields when it comes to renting a property: the current gross yield in the local area is 4.5 per cent.
The future looks bright for the local property market.
Now is the time to think about getting on it if you’re not already, especially while interest rates remain so low. If you’re a buyer, get in touch today for advice with your property search and a consultation with our in-house financial adviser. If you would like to sell your property, contact us for a friendly chat with one of our local experts. We’d love to help.
Monthly sales rate by main house type
This chart takes a look at how sales levels have evolved over the last eight months in the local area. It should be noted that we’re looking at a relatively tight area over short periods of time, which is why there is a lot of volatility in the figures. The patterns are very revealing and show how seasonality affects the dynamics of the market.
Local property prices vs region & country
It is hard to gauge actual property price movements without having something to compare them against. The chart shows the price differences in our area compared to Regional & National Figures for the last 8 years.
Length of residents’ working day
Areas which are home to residents who work long hours tend to have something of a split personality. The people you might see on the street on weekdays are often very different to those at weekends. The crucial benchmark is 49 hours per week.
(Dated August 2017, source GSS)
Source: ResiAnalytics, Office for National Statistics and Land Registry © Crown copyright 2016.
Note: Dotted lines indicate estimates based on historical patterns
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