We often review the local housing market and by blending recent experiences on the ground with real time data produced by Land Registry we keep our advice and ‘market chat’ illuminating and accurate.
Certainly, the market has felt incredibly buoyant in recent months with huge numbers of viewings generated for each house listed to the market. Some clients have openly wondered whether prices really can rise much further!
We have long felt that the Plymouth market is undervalued, and that the West Country will see an increased level of interest as pandemic lifestyle adjustments evolve into longer term shifts.
Put this together with the relatively large number of properties that would benefit from improvements & the affordable low interest borrowing – and the short-term outlook for property values in Plymouth is positive.
So what do things really look like, and how are we fairing against England as a whole?
1. PLYMOUTH HOUSE PRICES UP 8.8% YEARLY IN AUGUST 2021, ENGLAND AVERAGE 9.2%
2. AVERAGE PRICE IS NOW 31% HIGHER THAN 5 YEARS AGO
3. AVERAGE HOUSE PRICE IN PLYMOUTH NOW £197,000, ENGLAND AVERAGE £264,00
4. THERE WERE 27% MORE SALE COMPLETIONS IN Q1 2021 THAN SAME PERIOD IN 2019
The data shows that The West Country is following overall UK price trending, and the transaction volume data shows that there is significant interest in houses for sale in Plymouth.
Is now the right time to sell?
While the local market has the ingredients to remain positive, particularly when compared against other UK regions, it is worth noting that inflation is beginning to rise in the wider economy, which may give some commentators pause for thought. Historic treasury reaction to high inflation is an increase to interest rates and hence increased costs of borrowing. Clients who have reason to be conservative with property investments or are highly geared may feel that a low-risk approach would be to hedge their position by offloading some property and thereby reduce debt. This in turn may increase the supply of stock onto the market.
Capital Gains Tax is in the spotlight
This month’s budget will likely include a change to CGT. If these are implemented as is rumoured in the property gossip columns, they will have an interesting effect on the investment strategy of property investors…. Watch this space for our take on these changes as they are announced.
Whether you are a home owner or property investor, If you are considering selling your house in Plymouth, need help letting or managing your property please give Dan or Helen a call to discuss a plan that’s best for you.
* UK House Price Index