Those of you who regularly read my weekly articles in the Lancaster Property Blog will know I like to keep abreast of the Lancaster property market. Something attracted my attention this week about the local property market, something I wanted to share with my many readers. Over the last month, the average asking price of a Lancaster property, according to Rightmove, rose 0.5% this month and the average value of a Lancaster property also rose by 0.5%.
So how does this relate in monetary terms? This average asking price of a Lancaster property is up slightly to £162,700 whilst the average value is now £185,600. You will note the average value is higher than the average price. This is because, in Lancaster, there are more properties on the market for sale, at this moment in time, which are in the lower to middle market, than the middle to upper market, thus reducing the overall average asking price. Technically an ‘asking price’ can be any price that a homeowner wants to place his or her property on the market for. Unfortunately, many times this is done without research and can result in overpriced properties that don’t sell. As the Summer months are normally slightly quieter those left on the market wanting to sell often temper their asking prices in these months to try and generate interest in their property.
On the other side of the coin, the property ‘value’ is the price that a willing buyer is prepared to pay and a willing seller is prepared to sell at. Therefore, in a nutshell, Lancaster property values are continuing to rise and those homeowners in Lancaster who have properties on the market, last month on average, increased their asking prices … great news for property owners and buyers alike!
In previous articles, I have spoken about the continued fundamental shortage of property coming on to the market compared to buyer demand. That is especially true for homeowners wanting to upgrade to a better house/better location. I can appreciate Lancaster home owners are reluctant to put their own property on the market speculatively and wait for the right property to become available and some high demand locations can suffer from a property stalemate.
Most homeowners don’t want to sell and have nothing to buy. But that’s the beauty of the much maligned English and Welsh house buying process. You can find a purchaser for your property, then ask them to wait. By agreeing a sale (subject to contract) before you try to buy sounds concerning to many, but with fewer properties for sale you need to have a buyer for your property or you will be treated as a less serious buyer yourself. If you cannot find the right home for you, you can slow the deal with your purchaser until it comes along. If nothing suitable does comes along and you lose your buyer then the worst outcome is that you have to find another purchaser or take your property off the market and stay put for now, and as long as you mention this at the start they must not commit to any costs until you have agreed your onward purchase.
However, for the landlord/buy to let investors, these potential problems are nothing further from the truth. As I write this article, there are over 110 flats for sale, over 210 terraced houses and over 120 semis for sale in Lancaster. Landlord/Buy to let investors can normally pick up some bargains in the Autumn months, as sellers who are selling their homes often have a pressing need to sell by this time.
The types of houses a Lancaster landlord typically buys, are not the same types as the homeowners wanting to move to a posher area of the city as they are attracted by larger semis and detached properties. The best types of properties for buy to let are the smaller flats, terraced and semis (not the big detached ones). There are in fact too many of these smaller properties for sale … just look at the numbers of properties for sale (mentioned in the previous paragraph).
If you are a landlord or thinking of become one for the first time, and you want to read more articles like this about the Lancaster Property Market together with regular postings on what I consider the best buy to let deals in Lancaster, out of the hundreds of properties on the market, just follow our blog or check out the local property guide which I advise in each edition.
Thanks for reading