Since 2000, we’ve seen a property boom, a credit crunch, a recovery and the rise of the renter, to name but a few of the changes which have shaped the market. Seasons come and go, families move in and out and prices rise faster and more slowly. But how has our local housing market changed in the last 20 years?
In Chelmsford, the average price of a mid-market property is £349,000, a 208.8 per cent increase from the average property price in 2000 – which was £113,000. Meanwhile, the top 5% most expensive properties in the area start at £1.1m while the top 1% start at £2.2m. Upwards pressure on pricing has been underpinned by the fair availability of credit which has kept demand stable at a high level, whilst low levels of house building have limited supply.
Low levels of housebuilding are either great news or terrible news based on one’s own situation. For example, if you’re a homeowner with ‘nimby’ tendencies it’s great news because it keeps you house price high without new development blocking your view. However, if you’re a would-be homeowner it provides an insurmountable barrier to getting onto the ladder.
Getting on the property ladder is not as simple as it was 20 years ago. In 2000, the average local house price of £113,000 and stumping up 10% for a mortgage was fairly achievable. Now, however, prices have far outstripped earnings so saving for a deposit has become more of a challenge.
In the last two decades, many homeowners have also become buy-to-let landlords to benefit as much as possible from strong capital inflation. In the local area, 12.9 per cent of properties are owned by private landlords – an increase of 4.1 per cent from two decades ago. The tax environment has been made less comfortable for accidental landlords, but opportunities abound for serious investors.
While we can’t predict where the property market will be in the next 20 years, we can only see prices going one way: up. If you’re a current homeowner and are thinking about selling your property, or you’re a buyer interested in finding their next home, please pop into our office for a chat. We’d love to hear from you.
You can download the full report here.