Over the last month, the Lancaster property market has seen some interesting movement in house prices, as property values in the Lancaster City Council area rose by 0.7% in the last month, to leave annual price growth at 1.9%. These don’t compare as well to the national figures, where property prices across the UK saw a monthly uplift of 0.42%, leaving the annual property values across the country 8.3% higher. This might be down to the constraining factors of Stamp Duty changes in the spring and more recently our friend Brexit, however, it does mean there might be some bargains out there for landlords and homebuyers alike.
Looking at the figures for the last 18 months makes even more fascinating reading, whereby house prices are 5.7% higher, again thought provoking when compared to the national average figure of 13.6% higher.
However, it gets more remarkable when we look at how the different sectors of the Lancaster market are performing. Over the last 18 months, in the Lancaster City Council area, the best performing type of property was the detached, which outperformed the area average by 0.78% whilst the worst performing type was the apartment, which under-performed the area average by 1.17%.
Now the difference doesn’t sound that much, but remember two things, this is only over eighteen months and the gap of 1.95% (the difference between the detached at +0.78% and apartments at -1.17%) converts into a few thousand pounds disparity, when you consider the average price paid for a detached property in Lancaster itself over the last 12 months was £290,500 and the average price paid for a Lancaster apartment was £145,300 over the same time frame.
I know all the Lancaster landlords and homeowners will want to know how each of the property types have performed, so this is what has happened to property prices over the last 18 months in the area…
Overall Average +5.7%
“So what does all this mean to Lancaster homeowners and Lancaster landlords and what does the future hold?”
When I looked at the month-by-month figures for the area, you can quite clearly see there is a slight tempering of the Lancaster property market over these last few months. I have mentioned in previous articles that the number of properties on the market in Lancaster has increased this summer, something that hasn’t happened since 2008. Greater choice for buyers means, using simple supply and demand economics, that top prices won’t be achieved on every Lancaster property.
You see, some of that growth in Lancaster property values throughout early 2016 may have come about because of a surge in house purchase activity, an indirect result of the increase in stamp duty on second homes from April, thus providing a temporary boost to prices.
However, it may be possible the recent pattern of robust employment growth, growing real earnings and low borrowing costs will tilt the demand/supply seesaw in favour of sellers and exert upward pressure on prices once again in the quarters ahead.
Looking in to the future of Lancaster property values, assuming that everything goes well with Brexit, I believe in twelve months’ time we should see values in the order of 1% to 2% higher.
What are your thoughts? How do you see property prices in the next 12 months? Why not call into our Lancaster Office for a chat. I’ll let you know more thoughts on the rental market too!