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Everyone is talking about Brexit and how it will affect the housing market. But how much does everyone really know? Will it cause house prices to crash or will it go the other way and increase prices over time?
Wilmslow house prices have held at a good level for a number of years. The average house price in Wilmslow starts to compete with its counterparts in Southern England. The average house price is currently rated at £411,000. Market research has found that in June 2017 alone, property prices have increased 0.84%. Despite the uncertainty of Brexit, the house prices seem to be steadily increasing month on month. Looking at sold prices, terrace houses was selling for £268,124 and semi-detached properties were selling on average at £370,128. When you compare this to other parts of the country, the sold prices are far greater and the market more buoyant than other areas.
It should be noted however that 2015 showed a marked decrease in sales. Property sales fell from 678 sales in 2014 to 387 in 2015. On the upside, the average house price did not fluctuate much at all with a £1000 decrease in value from 2014 to 2015.
2016 showed a greater market variation for detached properties in Wilmslow. There were two noticeable drops in value of houses in the periods between March and April 2016 and then again November 2016 through until February 2017. What was interesting was how the market picked up mid-way through the second quarter of 2017 and has continued to strengthen further on all property types.
In comparing average sold prices in March 2016 and March 2017, you can see the only significant price drop has been for detached properties. The justification for these price drops could be the tightening of mortgage approval criteria. It could also be put down to people having less money to spend in disposable income.
Demand for semi-detached houses meant there was a steady increase in sold prices from March 2016 when compared to March 2017. The average sold price of a semi increased from £480,767 to £650,857. Lenders should expect the applications to remain steady, but with prices continuing to climb.
One trend over the coming months and years, which we could already be seeing in the decrease in the detached house sales, is the housing gap increasing. The trend over the last few years has been that first time buyers are not moving up the property ladder. This again could be due to a lack of available affordable housing. A large number of people who would have traditionally downsized have stayed in larger properties. With the tightening of mortgage criteria and wages remaining at a lower level, first time buyers have slowed. This has however started to pick up with the further introduction of government schemes.
With its location to Manchester and the airport, the forecast for the housing market is set to remain steady for the foreseeable future. House prices are expected to remain at a steady level, with an average turnover rate as the area is expected to remain popular and desirable.
The effect of Brexit is not something that can be accurately predicted, however it is expected that it could cause a decrease in prices. Whether this will affect the more salubrious of areas such as Wilmslow is hard to predict. For now, this area is still highly sought after and can demand higher prices.
Eddison Wells is a mortgage brokerage based in Altrincham. With a wealth of knowledge, Eddison Wells is ideally placed to provide a comprehensive range of financial products. Providing the highest quality service at the most affordable price is a prerequisite and a firm ethos - visit their site at eddisonwells.co.uk, or call one of their advisors now on 0800 808 9981.
Photo By David Wilmot from Wimbledon, United Kingdom (Flickr) CC BY 2.0.
