The foundations of the Runcorn property market over the summer have continued to be principally sound. Yet the existing political macroclimate has reduced consumer confidence, causing some potential Runcorn property buyers and house sellers to hang fire about making any firm decisions regarding property.
With record low interest rates at 0.75%, low unemployment rates of 3.8%, and decent mortgage availability, Runcorn buyers have a lot going in their favour, aside from the perceived political uncertainty.
Interestingly, Rightmove have stated there are more properties for sale today in the country, than at any time since 2016, and Runcorn follows that trend. Even with that in mind, property values have remained reasonably stable as The Land Registry has just released its House Price Index for Runcorn and the surrounding locality.
Overall, property values in the Runcorn area are 8.7% higher than a year ago as the average property value in Runcorn now stands at £154,100.
When I looked at the types of Runcorn properties, a slightly different picture appeared:
and splitting down the types of Runcorn into property types:
Runcorn Property News readers will know I like to measure the health of Runcorn’s property market not only by house prices, but transaction levels as well.
631 properties were sold in the last year in Runcorn, higher than the 10-year average of 604 properties per annum
Considering the uncertainty the UK has been through in the last three years with the ‘B’ word issue, I don’t think that’s too bad; and it shows the underlying resilience of Runcorn’s property market.
Now looking forward towards the end of the year; how will Runcorn house values change under the new Prime Minister?
Runcorn buy-to-let landlords and Runcorn first-time buyers seem to be sustaining their preceding activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Runcorn homes on the market. This not only offers them greater choice but aids with their negotiations. The suggested stamp duty changes made me look at previous stamp duty changes in the last decade, and their effects have been rather short term.
That means those selling their homes in Runcorn need to be realistic with their pricing. As most sellers also buy a property, what you might lose on your sale, will be made up on the purchase.
BoJo, Brexit… to be honest, are all short-term distractions from the long-term issues of the UK and Runcorn property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply. Irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices will always, in the medium to long term, remain stable and increase.
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