Despite the UK economy heading in the right direction with
record low mortgage rates and unemployment
figures dropping, the rate of
property prices rising in Milton Keynes have tempered since the start of the
year. This slow but sure downward trend in the rate of growth has been in
evidence since mid-2014. Property value
increases continue to outpace the growth in salaries, however the gap is
closing, helped by a lift in salaries over the last 6 months. Property values in the South East region as a
whole are 9.1% higher than a year ago.
Compare this to the neighbouring regions of the South West at 3.6%
higher and the East at 8.8%, the majority of the country continue to see annual
house price gains - the exception being Wales which recorded a slight decline of -0.6%.
Even with the tempering in house price inflation, it does
not necessarily change my outlook that property prices are likely to be firmer
over the second half of 2015 amid heightening activity in the Milton
Keynes property market. As
stated in a previous article, there is a current shortage of properties on the
market, restricting supply, which in turn will provide stability and support to
Milton Keynes property prices. Therefore, my
overall opinion is that Milton Keynes property
prices will rise by 6% over 2015 and roughly the same in 2016.
Property investment is a long term business. Buying the right sort of property is vital. I have recently been speaking with a number of Milton Keynes landlords about the importance of a
balanced portfolio, when buying and renting out property. The balance between
buying properties that offer good monthly returns (high yields) but quite often
offer poor capital growth (i.e. they don't increase in value that much over the
years compared with the average) verses properties that do go up in value
quicker but often offer a lower yield. So,
what type of properties have performed best over the last few years in Milton Keynes , especially in terms of their capital
growth?
When comparing what the average price of detached, semi
detached, terraced and flats were selling for back at the start of the
Millennium to the present. The results
are quite remarkably different, almost like a bag of Liquorice Allsorts,
as the different types of property have performed poles apart over the last 15
years:
·
Detached Houses
in 2000 were selling on average for £169,773 and so far in 2015, they
have been selling on average in Milton Keynes
for £344,260 a rise of 103%
·
Semi -Detached
Houses in 2000 were selling on average for £79,554 and so far in 2015, they
have been selling on average in Milton Keynes
for £208,872, a rise of 163%
·
Terraced Houses
in 2000 were selling on average for £69,011 and so far in 2015, they
have been selling on average in Milton Keynes
for £189,797 a rise of 175%
·
Flats and
Apartments in 2000 were selling on average for £47,389 and so far in 2015, they
have been selling on average in Milton Keynes for £131,080 a rise of 177%
Moving forward, what should new and existing buy to let
landlords do with this information? Well,
the questions I seem to be asked on an almost daily basis by landlords are:
·
“Should I sell my
property in Milton Keynes ?”
·
“Is the time
right to buy another buy to let property in Milton Keynes
and if not Milton Keynes , where?”
·
“Are there any
property bargains out there in Milton Keynes
to be had?”
Many other Milton Keynes
landlords, who are with both us and other
Milton Keynes letting agents, like to pop in
for a coffee, pick up the phone or email
us to
discuss the Milton Keynes property market, how Milton Keynes compares
with its closest rivals (Northampton, Banbury and Leighton Buzzard), and
hopefully answer the three questions above.
I don’t bite, I don’t do hard sell, I will just give you my honest and
straight talking opinion and look forward to hearing from you.
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