The foundations of the Rutland Property Market over the summer have continued to be principally sound; yet the existing political ‘macro-climate’ means that the critical element of consumer confidence has been reduced and that is triggering some potential Oakham property buyers and Oakham house sellers to falter slightly and hang fire making any firm decisions on property.
With record low interest rates at 0.75%, low unemployment rates of 3.8%, and decent mortgage availability (even those with low deposits - there were 224 mortgage deals available on the day of writing this article where only a 5% deposit was required and 5 mainstream lenders that would offer 100% no deposit mortgages), Oakham buyers have a lot going in their favour, aside from the perceived political uncertainty.
Interestingly, Rightmove have stated there are more properties for sale today in the country, than at any time since 2016, and Oakham follows that trend. Even with that in mind, property values have remained reasonably stable as The Land Registry has just released its House Price Index for Oakham and the surrounding locality and it makes very interesting reading.
Overall, property values in the Oakham area are 2.5% higher
than a year ago as the average property value in Oakham now stands at £322,900.
When I looked at the types of Oakham properties, a slightly different picture appeared:
· Oakham Detached homes rose by 2.7%
· Oakham Semi-detached homes rose by 3.1%
· Oakham Terraced/Town-House rose by 1.8%
· Oakham Flats/Apartments rose by 1.1%
Then, splitting down the types of Oakham property into average property values;
· Oakham Detached £426,300
· Oakham Semi-Detached £239,600
· Oakham Terraced/Town-House £207,900
· Oakham Flats/Apartments £151,600
Yet, Oakham Property Market Blog readers will know I always like to measure the health of the Oakham property market not only by house prices but transaction levels as well:
486 properties were sold in the last year in Oakham,
lower than the 10-year average of 549 properties per annum
Considering the uncertainty the country has been through in the last three years with the ‘B’ word issue, I don’t think that’s too bad and shows the underlying resilience of the Stamford and Rutland property market.
Now looking forward towards the end of the year, how will Stamford and Rutland house values change under Boris Johnson?
Oakham buy-to-let landlords and Oakham first-time buyers seem to be sustaining their preceding activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Rutland homes on the market, which not only offers them greater choice, but aids with their negotiations. The suggested Stamp Duty changes made me look at previous Stamp Duty changes in the last decade and their effects have been rather short term.
That means those of you selling your homes in Stamford and Rutland need to be realistic with your pricing, and, as most sellers also buy a property, what you might lose on your sale you will make up on the purchase.
BoJo and Brexit are all short-term distractions from the long-term issues of the UK and Oakham property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply, meaning irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices will always in the medium to long term remain stable and increase.
If you’d like a realistic market appraisal of your home, we’d love to chat to you about it and discuss where your house fits in with the current demand with buyers for Stamford and Rutland homes.