Well, hasn’t 2016 been eventful. The ups and
downs of Brexit, the Queen’s 90th, David Bowie & George Michael passing, Andy Murray winning Wimbledon, Trump, Bake Off to Channel
4 and something close to the hearts of every buy to let landlord and homeowner
in Dartford ... the Dartford property market.
So, let’s look at the headlines for the
Dartford property market...
In the last month, Dartford property values
rose by 0.69%, leaving them, year on year 15.1% higher, whilst interestingly, Dartford asking prices
are down 2.0% month on month. All three statistics go to show the Dartford
property market has recovered well after the summer lull, which was worsened by
the uncertainty surrounding the EU vote back in June. Irrespective of all the
issues, the average value of a Dartford home now stands at £342,900.
Generally, Dartford asking prices continue to
hold up well, as asking prices are 4.7% higher year on year. At this time of
year, asking prices tend to drop on the run up to Christmas and locally, they
have dropped by 2.0% this month (November 2016), although this compares well
with last year’s drop in Dartford asking prices, as we saw asking prices drop
by 1.1% in November 2015.
Now it’s true to say, after chatting with
fellow property professionals in Dartford, all of us have seen the number of
property sales fall slightly, suggesting a slowing market, but it is very early
days and it could be the time of year. Also, the numbers are limited, so it’s
interesting to take note from a recent survey by the Royal Institution of
Chartered Surveyors, stating new buyer enquiries and new instructions are
falling at the same rate, suggesting that there will not be a downward pressure
on property values.
Looking at the
figures for the UK (as we can’t just look at Dartford in isolation), property
values are generally rising slower
than a few years ago, but on a positive note, there's still growth across the
UK. You see, slowing property value growth isn't solely
Brexit related, but after a number years of double digit rises in property
values, affordability has weakened and cooling price growth is widely
seen to be a natural correction of the market.
On the other hand,
interest rates being at a record low of 0.25% are helping the property market. The cut in interest
rates in the late summer was the medicine for the post-Brexit worry and will,
as a consequence, ensure that the UK economy continues to be underpinned by
buoyant property prices.
So, what will happen in 2017 in the
Dartford property market?
Some say until we know what type of exit the
UK will make from the EU it is hard to evaluate the outcome. Although, I believe, the whole Brexit
issue is a sideshow to the main issue in the UK (and Dartford) housing market as a whole. As I have mentioned time
and time again over the last few months, the biggest issue is demand outstripping supply when it comes
to the number of households required to house us all. Dartford has an
ever-growing population: with immigration (we still have at least two years of
free movement from EU members into the
UK), people living longer and the fact we need thousands of additional
households as the country has nearly 115,000 divorces a year (where one
household becomes two households).
These are interesting
times ahead!
