Stamford Homeowners Make £8,301 Profit Per Year In House Price Growth
Thu 02 May 2024
As we are now nicely into 2024, the team at Pelham James are pleased to report the Stamford housing market over the last 18 months has been a little more restrained than 2020, 2021 and early 2022. I believe that the ‘steady as she goes’ outlook will continue into the rest of 2024 and beyond.
As home ownership is a medium to long-term investment, it is important to see what has happened to Stamford house prices.
Since the start of the Millennium (Jan 2001), the average Stamford homeowner has seen their property’s value rise by an average of 177%.
This is important as house prices are a national obsession and tied into the health of the UK economy as a whole. Most of that gain has come from the overall growth in Stamford property values, while some of it will have been enhanced by extending, modernising or developing their Stamford home.
Looking at the different types of property in Stamford and the profit made by each type, it makes interesting reading:
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Overall Average For All Homes in Stamford.
The average price of all homes in Stamford in 2001 was £109,374. Now it's 2024, it has risen to £300,300. This is a total profit of £190,926 (which is £8,301 profit per year per home or an annual growth of 7.7% per year). -
Apartments in Stamford.
The average price of an apartment in Stamford in 2001 was £66,107. Now it's 2024, it has risen to £225,061. This is a total profit of £158,954 (which is £6,911 profit per year per home or an annual growth of 10.6% per year). -
Terraced/Town Houses in Stamford.
The average price of a terraced/town house in Stamford in 2001 was £99,001. Now it's 2024, it has risen to £328,390. This is a total profit of £229,389 (which is £9,973 profit per year per home or an annual growth of 10.1% per year). -
Semi-Detached Homes in Stamford.
The average price of a semi-detached home in Stamford in 2001 was £80,457. Now it's 2024, it has risen to £307,880. This is a total profit of £227,423 (which is £9,888 profit per year per home or an annual growth of 12.4% per year). -
Detached Homes in Stamford.
The average price of a detached home in Stamford in 2001 was £173,435. Now it's 2024, it has risen to £435,129. This is a total profit of £261,694 (which is £11,378 profit per year per home or an annual growth of 6.6% per year).
However, we can’t forget there has been 79% inflation over those 23 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we take into account inflation since 2001, the true ‘spending power’ of that profit has been lower.
Overall Average For All Homes in Stamford: The total 'real profit' (i.e., after inflation has been removed) for the average Stamford home is £106,247 for the last 23 years. This equates to £4,620 'real' profit per annum.
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Stamford Apartments.
The total 'real profit' (i.e., after inflation has been removed) for the average Stamford apartment is £88,455 for the last 23 years. This equates to £3,846 'real' profit per annum. -
Stamford Terraced/Town Houses.
The total 'real profit' (i.e., after inflation has been removed) for the average Stamford terraced/town house is £127,651 for the last 23 years. This equates to £5,550 'real' profit per annum. -
Stamford Semi-Detached Homes.
The total 'real profit' (i.e., after inflation has been removed) for the average Stamford semi-detached home is £126,557 for the last 23 years. This equates to £5,502 'real' profit per annum. -
Stamford Detached Homes.
The total 'real profit' (i.e., after inflation has been removed) for the average Stamford detached home is £145,628 for the last 23 years. This equates to £6,331 'real' profit per annum.
Thus, the annual profit for an average Stamford home, adjusted for inflation, stands at £4,620.
I wanted to illustrate that despite the 2008/09 Credit Crunch property market crash, which saw Stamford property values plummet by 15% to 20% over 18 months, homeowners in Stamford have still fared better over the long term than those renting.
Looking ahead, a common question I get asked is about the future trajectory of the Stamford property market.
The primary influence on maintaining house price growth in Stamford over the medium to long term will be the construction of new homes locally and nationally. Although we have yet to get the figures for 2023, government sources indicate that the number of new households is expected to be between 210,000 and 220,000. Considering the annual need is for 300,000 new households to meet demands arising from factors such as immigration, increased life expectancy, higher divorce rates, and later cohabitation, it’s clear that demand will continue to outstrip supply unless the government heavily invests in building council houses.
This can only be good news for Stamford homeowners.
Should you wish to understand your position in the Rutland & Stamford property market, don't hesitate to reach out. I'm here to assist with my expertise and detailed understanding of the property market, guiding you through these dynamic times in our local property scene.
If you would like to discuss this article in any more detail, or any other matters relating to the property market in Rutland and Stamford, feel free to get in touch with our team at Pelham James for free, no obligation chat.
David
