At the end of 2017, you couldn’t move for people and specialists making predictions. This is the same at the end of every year but for the property market, it appears the experts were predicting a gloomy and challenging year ahead. With aspects like Brexit and a lack of confidence being cited by many professionals, most specialists were saying that property prices were set to fall in 2018.
Therefore, the announcement from Nationwide for January 2018 took many people by surprise. In fact, the Chief Economist from the Nationwide stated that the organisation was shocked at the increase in house prices. This wasn’t just a standard increase, this was the largest rise in house prices for 10 months. For January of 2018, the average price of property was listed as £211,756.
This was an increase of 0.6% from the December of 2017 figures but when looking at the year-on-year figures, there was an increase of 3.2%. With this increase flying in the face of most predictions, some people may think that it is kay to start looking at the rest of 2018 in a more optimistic light. It is probably too early for that, and many specialists still suggest that the market will slow or decline, but there is a need to understand why property prices rose when they were predicted to fall.
One of the key factors, if not the most prominent factor, in the property market over the last ten years or so is the lack of suitable housing. There is a need for affordable housing in the UK and when this isn’t present, simple economics, with demand outstripping supply, leads to an increase in property prices.
It is believed that January saw a fall in the amount of properties being placed on to the market. In a way, you wouldn’t blame homeowners for not placing their home on the market in January. After all, most predictions suggested that property prices were going to fall, which means that some homeowners will have decided to wait to later rather than placing property on the market at the start of the year. Ironically, the homeowners who ignored the predictions and placed their property for sale in January would have benefitted from increased prices.
There is no doubt that property predictions impact on the market by changing certain people’s behaviour. This means that the positivity in the January market may lead to more homeowners looking to sell their home, which could see prices falling.
It is difficult to predict what is going to happen with the property market. So many factors influence the market and there are always new elements to consider. After all, the removal of stamp duty for first-time buyers purchasing property at less than £300,000 probably hasn’t fully impacted the market yet, so this could be another issue that is worth paying attention to.
If you are looking to make a move in or around Dunstable in 2018, contact Deakin-White and we will do what we can to help you take the next step.
There is no denying that the announcement that stamp duty was being removed for first-time buyers purchasing a home for less than £300,000 captured the imagination and media headlights. This was the big news story from the Autumn Budget in November 2017 and the move was heralded as a sign that the Government was keen to assist first-time buyers step on to the property ladder.
Of course, not long after the announcement, there was opposition from the Office for Budget Responsibility. The response suggested that the removal of stamp duty would lead to house price increases, negating the savings that first-time buyers would enjoy. There was an argument put forward that this move would be of more benefit to existing property owners than people looking to step on to the property ladder.
While both viewpoints are valid, there is an argument that anything which lowers the up-front cost of buying property to be of benefit. The money saved from not having to pay for stamp duty could be put towards the deposit and increasing the size of deposit is always of benefit when looking to buy property.
Of course, not all first-time buyers will benefit from this move:
· Buyers purchasing property at less than £125,000 wouldn’t have paid any stamp duty
· Buyers purchasing property over £300,000 but less than £500,000 only receive some discount
· Buyers purchasing property over £500,000 receive no stamp duty discount at all
With the average price of one-bedroom properties in Dunstable listed as £153,588 and two-bedroom properties listed as £209,924, many first-time buyers in the area should be able to benefit. This wouldn’t be the case for most buyers in London or in some parts of the South East of England where the price of property is much higher.
The fact that this discount is likely to be applicable to most first-time buyers in Dunstable should be of benefit to the market. At the end of 2017, an agent in London, said they experienced a 10% increase in walk-ins from first-time buyers expressing an interest in property. Given that most first-time buyers in London aren’t even eligible for the stamp duty cut, it suggests that people are interested to see how or if this change impacts on them.
This is likely to be the same story in Dunstable. It may not convince many people who had no interest in buying a home to suddenly look for property but for prospective buyers who were wavering over buying property, this may provide them with added motivation to do so.
There is still industry doubt that the cut will help people buy homes. The Royal Institute of Chartered Surveyors, or Rics, polled their members at the end of 2017 and 66% of respondents said they didn’t expect there would be any impact from this change. 12% of respondents said that they did believe the cut would assist first-time buyers though, and it remains to be seen what the true impact on the market will be.
At Deakin-White, we hold an interest in the UK property market, and its movements, but our focus is on Dunstable and surrounding areas. If you want to be fully informed of how the local market reacts to the stamp duty cut, stay in touch with us and we will make sure you know what is happening.
Does your commercial property have hidden development potential?
A little-known change in the national planning regulations could mean your commercial property has new and highly lucrative development potential. On 1st October this year a new class of permitted development (PD) rights came into place to enable the conversion of light industrial units (Use Class B1c) to residential use (Use Class 3).
At Deakin-White, we are Members of the national Land & New Homes Network, and we recognise this as an opportunity for many commercial property owners to benefit from the changes to the regulations.
This form of permitted development will benefit existing light industrial units, which are generally considered as small-medium sized businesses which can operate successfully in residential areas without being a detriment to the neighbouring area.
Examples of these types of business include small workshops, repair workshops and similar non- intensive enterprises.
As a landowner you may wish to take advantage of exploring the value of your building within the framework of the new Permitted Development Rights and that’s something we at Deakin-White can certainly help you with. Kevin Ellis, Founder of the Land & New Homes Network, highlighted the opportunities: “The recent regulation change offers owners of these light industry units an opportunity to explore the residential potential of their building, which for many would not have previously been possible.”
Things to consider include: The new PD rights won’t apply to all light industrial buildings. Those located in certain protected areas, or form part of a protected curtilage are unlikely to be eligible for residential conversion under Class PA.
Sites which are exempt include: The existing floor space of the building exceeds 500 square metres. The site forms part of a site of special scientific interest (SSSI) The site is occupied under an agricultural tenancy, unless consent is given by both landlord and tenant.
There are several other things which need considering which we would be delighted to discuss with you.
Are External Alterations Required? Permitted development rights only apply where no external alterations are required to the building. If external alterations are required to enable the conversion, i.e. window positions, cladding etc, planning permission will be required for those works.
We have a team of expert consultants, with experience in all areas of development and planning regulations waiting to help you. If you think you have a site that falls into this category and would like to explore the development potential, then please get in touch with Deakin-White for an informal and confidential chat.
Throughout 2017 here at Deakin-White we have been sponsoring Dunstable Town Councils Events for the residents of Dunstable and the surrounding area and the next event is this Friday 3rd November 2017 and it’s The Dunstable Firework Display and for the first time ever it’s FREE entry to this Firework Display.
It’s being held at Creasey Park Community Football Centre just off Brewers Hill Road and the gates open at 5pm and the display will start at 7pm.
There will be a funfair and entertainment for all the family from 5pm, so wrap up warm and come and enjoy a great evening with us.
DJ Darren Jones of 1981 Events will be entertaining us on the night with music and there will be a fantastic fireworks display choreographed to music!
For parking information please check out Dunstable Town Councils Website - http://www.dunstable.gov.uk/dunstable-fireworks-.htm#sthash.d1JCI9Ky.dpbs
We look forward to seeing you all on Friday 3rd November. Another great reason to live in Dunstable – a FREE Fireworks Display for all the family.
When it comes to house prices, knowing the latest prices and values is of benefit but there needs to be context surrounding these prices and values. There needs to be other figures so you can make comparisons. This may be prices and values for other areas, if you are considering a range of locations to buy property in, or you may find that comparing current prices and values in an area with prices and values from a previous time will be of benefit. When it comes to considering trends or trying to calculate what will happen in the future, knowing what has happened in the past alongside what is happening in the present day can be helpful.
This is definitely the case if you are looking to find out more information about the property market in Dunstable. This charming market town may be located 30 miles from London but it can seem like a world away. However, it is still the largest settlement in the central Bedfordshire area and it is classed as the third largest area in Bedfordshire, behind Luton and Bedford. These facts are good reasons to consider the Dunstable property market and this means you should be looking for a house price update in Dunstable and considering how it has changed.
As of October 2017, the property value in Dunstable stands at £310,288 while the average price paid for property in the past 12 months stands at £276,922. In the past six months, the average price paid for Dunstable property is £285,952 while the average price paid for property in Dunstable in the past three months stands at £281,750.
It is sometimes not wise to review price changes over such a small time frame because one or two outliers can have a big influence but in comparison to the prices over the past year, there is enough to suggest that prices are rising in Dunstable at the moment. It has been another challenging year in the UK property market but at the moment, prices are rising across the country (well perhaps not in London which experienced a fall in September) and Dunstable certainly looks to be on the up.
For reference, the average price paid for Dunstable property in the past five years is £238,353 and the figure for the past decade stands at £223,411.
With respect to Bedfordshire as a whole, the average value of property, as of October 2017, stands at £308,688 and in the past 12 months, the average price paid for property stands at £290,997. This is a sum close to £15,000 higher than the Dunstable average. In the past six months, the average price paid for Dunstable property stands at £301,295 while in the past three months, the average price has risen to £309,744.
The same caveats to studying price changes over a small period of time apply here but there is a lot to be said that the property market in Dunstable, and Bedfordshire on the whole, is on the up.
Whatever move you are looking to make in the Dunstable property market, this information should be of interest to you and will hopefully allow you to make an informed decision, whatever you decide to. When you need assistance or guidance in the Dunstable property market, be sure to rely on Deakin-White.