The foundations of the Southampton Property Market over
the summer have continued to be principally sound; yet the existing political macroclimate
means that the critical element of consumer confidence has been reduced and
that is triggering some potential Southampton property buyers and Southampton
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 main stream lenders that would offer 100% no
deposit mortgages), Southampton 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 Southampton 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 Southampton and the surrounding locality and it makes very interesting
reading.
Overall,
property values in the Southampton area are 1% lower
than
a year ago as the average
property value in Southampton now stands at £295,200.
When I looked at the types of Southampton
properties, a slightly different picture appeared..
·
Southampton Detached homes dropped
by 0.6%
·
Southampton Semi-detached homes rose
by 0.2%
·
Southampton Terraced/Town-House dropped
by 0.5%
·
Southampton Flats/Apartments
dropped by 2.3%
and the current values for these types of properties
are ..
·
Southampton Detached £443,400
·
Southampton Semi-Detached £280,300
·
Southampton Terraced/Town-House
£239,800
·
Southampton Flats/Apartments £178,100
Yet, Southampton Property Market Blog readers will
know I always like to measure the health of the Southampton property market not
only by house prices but transaction levels as well, so
..
5,425
properties were sold in the last year in Southampton,
lower than the 10-year average of 6,103 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 Southampton
property market.
Now looking forward towards
the end of the year ..
how will Southampton house values change under the new Prime Minister?
Southampton buy-to-let landlords and Southampton 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 Southampton 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 selling their homes in Southampton
need to be realistic with their pricing, and, as most sellers also buy a
property, what you might lose on your sale you will make up on the
purchase.
BoJo, Brexit … to be honest are all short-term
distractions from the long-term issues of the UK and Southampton 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 would like to pick my brains on the Southampton Property Market – pop in for a coffee or drop me a line on social media or email.
If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.
Email me on brian.linehan@belvoir.co.uk or call on 023 8001 8222.
Don't forget to visit the links below to view back dated deals and Southampton Property News.
Twitter, https://twitter.com/sotonbelvoir
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