HAPPY NEW YEAR
As the new year commences, The Search Partnership takes a detailed look at Yorkshire house prices in 2015 and sets out our predictions for 2016;
We have long held the opinion that there are widely conflicting views from the usual house price commentators on a national level leading to confusion at local level. The national statistics sway the house price charts significantly. A quick search online shows that in London SW3 the sale price per square foot averages £2,018. In the entire county of Yorkshire, it is closer to £200 per square foot. The Search Partnership has prepared an in depth analysis of the Yorkshire market place; The Search Partnership Index. The Index, to be published annually, is based on the average £/square foot houses have sold for over the last 5 years. It shows some interesting trends and manages the expectation of both buyers and sellers alike.
Many of our clients are searching for either country property in the popular parts of the county or townhouses within Harrogate so we wanted to carry out specific research in these areas. The research focuses on and compares the villages in the North Yorkshire A1 spine: Bedale, Thirsk, Ripon, Boroughbridge and Wetherby villages, along with Harrogate town.
The sale price of every house sold in the sample area was divided by the Gross Internal Area (the RICS standard for measuring residential property) providing an average price per square foot calculation for every house sale in the 6 areas, over a 5 year period. This research now gives property owners in these areas a more accurate idea of what their house is worth.
It is important to remember that traditional RICS methods of valuation using comparable evidence must not be ignored when arriving at an appropriate guide price and professional advice from an estate agent with a proven track record should always be sought to allow for variables such as situation, condition, plot size, view etc. but the price per square foot multiplier is a useful arithmetic check. The data is also particularly useful, whether you are looking for the largest house possible within your budget or looking for an area in which your capital is likely to grow at the fastest rate.
Perhaps unsurprisingly, prime Harrogate achieves the highest price per square foot with levels this year reaching, on average, £354/sq. ft. and the highest rate of increase of almost 23% over the last 5 years. Wetherby has also seen similar rates of growth with average prices per square foot increasing 22% from £272 to £332 over the five years. It is also interesting to note that of the 6 zones surveyed, the villages around Bedale have shown a 0.7% decrease over the five years. The results demonstrate a clear trend that the price per square foot figures in the countryside villages at the top of the spine show not only a lower average price per square foot but also a smaller increase in prices per square foot achieved over the last 5 years.
PREDICTIONS FOR 2016
In January 2015 we predicted price growth of 3% to 4% in North Yorkshire for the year and this proved to be largely accurate. The Land Registry statistics show that the lower end of the market increased at a slightly higher rate than the upper end. Our predicitons for 2016 are that there is likely to be a flurry of activity in the buy-to-let market prior to the stamp duty increase in April this year. The incredibly low stock levels combined with the low number of new homes being built throughout the county in all sectors of the market are the resistance to high transaction levels and this is fuelling the steady increase in prices. Although we believe the pent up supply will be relieved to a degree this year, we still expect average price increases in Yorkshire to be around 4% in 2016. The publication of The Search Partnership Index at the end of 2016 will show how this is broken down in the regions.
WE WISH YOU A VERY HAPPY NEW YEAR
Toby Milbank - 07714 620555
Tom Robinson - 07725 733169