Optimistic Outlook - Nova News Editorial February 2016

The year has started well for the property market with agents and property experts both locally and nationally reporting continued strong activity in the market place. Articles that I have read recently, from national sources, anticipate a growth in the selling price of properties, over the next 12 months, of 4 to 6 per cent. This seems to tie in with a similar level of growth over the past year.

There is however always a significant variation from one region to another and in this part of the country we have been historically protected from the significant rises and falls in the values of our homes.

We are not subjected to the huge property price increases of the southeast or the difficulties encountered in areas where there have been significant job losses due to the closure of major employers in industrial centres such as with coal or steel in the North East and South Wales. Our economy in this part of Shropshire and Staffordshire is linked to a degree to the conurbation of the West Midlands, which has seen some losses of major employers but has gaining from the growth of such employers as Jaguar Landrover with their associated supply chain. We are in an area where the rural and urban economies meet and therefore benefit from the diversification of employment. The Local schools and Harper Adams University also bring a substantial housing need to the locality and this helps to “put a bottom in the market”.

The sales of properties on the new build estates in town seem to be very strong as are the sales of traditional three bedroom semis, which, as long as the price is right, have always sold well in Newport. Much of this has been down to the busy rental market; this shows no sign of slowing down as rents continue to rise. Will there be a short-term blip in prices as landlords are influenced by the change in the stamp duty payments due on rental houses and second homes? Will there be an increase in such properties being marketed as some landlords leave the sector? Only time will tell, but rest assured that there is unlikely to be any let up in this part of the housing market as the need for rental property will surely continue to escalate. Particularly as rents rise, long-term landlords will factor in these increases into their plans.

You may well have seen articles from recent National Association of Estate Agents (NAEA) press releases, which reassure buyers, sellers, landlords and tenants of the integrity of members with such qualifications. Many of the local agents have this backing, as I do, and it offers clients the guarantee of their experience and qualification within the profession.

Call me on 07507 928008. You can also follow me on twitter @Andyvalues1551.