Property values rose by 6.37% (Dec 13 to Dec 14) in Chelmsford. Good news all round, but when you consider how property values in the city have previously performed in the last 5 years, this is not as good as the media would have you believe. The figures show that between Dec 2012 & Dec 2013, there was a 6.12% increase, between Dec 2011 & Dec 2012 an increase of 0.67%, between Dec 2010 & Dec 2011 a increase of 2.11% and finally between Dec 2009 & Dec 2010 a decrease of 0.11%!
The reality is that we have had a year and a half of decent market conditions in Chelmsford, but now all that pent up demand is starting to fade. The big question moving forward is whether the Chelmsford market will now be held back by affordability and restricted mortgage lending, and what long term impact this will have on the Chelmsford property market.
Looking at the UK as a whole, because we can’t look at Chelmsford in just its little own bubble, the recent rapid rise in house values in some parts of the UK in the early part of the year (especially in London), along with earnings growth that remain below inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand. This weakening in demand has led to a modest easing in both property price growth and sales. A moderation in growth looks likely into next year as supply and demand become increasingly better balanced.
Now with the General Election on the horizon, whichever Government takes power, they, along with the Bank of England, have a thorny job to do in balancing the expected rise in interest rates with the continued resurgence of the housing market, to ensure the property market doesn’t drop and drag down the economic recovery forcing people into selling their property at a loss.
However, back to Chelmsford; Long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-
Many other Chelmsford landlords, both who are with us and many who are with other Chelmsford letting agents, like to pop in for a coffee to discuss the Chelmsford property market, how Chelmsford compares with its closest rivals (Colchester, Ipswich, Brentwood etc.), and hopefully answer the three questions above.
I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion. Please email me firstname.lastname@example.org or call me on 01245 330500!
In the meantime may I take this opportunity to wish you all a very Merry Christmas and a prosperous 2015.