Whilst the Milton Keynes headline rate appears to be better,
i.e. the year on year (Sept 14 to Sept
15) growth rate of 9.1% is obviously better than the 8.4% in August 14 to
August 15), this rise of Milton Keynes property values masks the underlying
truth in what is really happening to local property values in the town. Throughout 2015, property values have
been yo-yo like on a month by month basis, being quite volatile in nature. For example:
·
September
2015 1.2% rise
·
August
2015 0.1% rise
·
July
2015 1.0%
rise
·
June
2015 0.3% drop
·
May
2015 0.5% rise
·
April
2015 0.7% rise
·
March
2015 1.0% rise
This is in
part due to seasonal factors, as well as mortgage approvals increasing over
June and July and then falling by over 15% in August, according to the Council
of Mortgage Lenders (CML).
The outlook for the Milton Keynes property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue? However, on a positive note, Milton Keynes property values are still running ahead of salaries and average property values are 8.2% above the levels recorded in 2007.
Talking to
fellow property professionals in the town, demand for property has been showing
signs of moderating in the final few months of 2015, which in turn will lead to
a slight slowdown in the pace of house price growth in the run up to the
festive season. You see, it is really important not to read too much into one
month’s (September’s) headline figures. The outlook for the Milton Keynes property market remains positive against the foundations of low mortgage rates and growing consumer confidence. However, I do have to question the recent CML mortgage data and whether that raises issues over whether the rate of growth since the Tory’s were re-elected in the early summer can continue? However, on a positive note, Milton Keynes property values are still running ahead of salaries and average property values are 8.2% above the levels recorded in 2007.
Readers might
be interested to note that before
the 2008 property crash, all the UK region’s housing markets tended to move up
and down in tandem like the Milton Keynes Synchronised Swimming team at the Wolverton
Swimming and Fitness Swimming Pool! Since then though, the Greater London property
market took off like a rocket in 2009/10, whilst the rest of the UK only really
started to grow in 2012/13 and even then that growth was a lot more modest than
the Capital’s. Looking closer to home,
it can even be different in neighbouring towns, areas and cities, so whilst Milton
Keynes property values are 9.1% higher than a year ago (as mentioned above), Luton
property values are 14.2% higher than a year ago.
I cannot stress enough the importance of doing your
homework. One source of information and
advice is the Milton Keynes Property Blog where I have similar articles to this
about the Milton Keynes property market and what I consider to be the best buy
to let deals around at any one time in the town, irrespective of which agent it
is on the market with. If you haven’t
visited and you are interested in the local property market in Milton Keynes…..
you are missing out!
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