How house prices have changed in Northampton over the last two years
Eddison Wells is privileged to have an office in Northampton. As as a Northampton Mortgage Broker we value the opportunity to go for a relaxing walk around Castle Ashby Gardens.
Home prices in Northampton have been on the rise for the past two years according to a research by Rightmove. The growth in house prices over the past one year since 2016 has reached to 9.1% according to the research. The increment in prices is expected to escalate even further over the coming few years. The high prices of owning homes in Northampton have compelled many citizens to move far away from towns and access cheaper housing. Many people prefer owning homes out of towns and commuting daily rather than acquiring the now almost unaffordable prices for homes in towns and their environs.
Owning a house in December 2014 was 13.3% more expensive than it was to purchase the same house a year earlier. House builders in Northampton are experiencing a significant change in their profits as in the past two years as compared to past years. Britain’s second-largest housing company which focuses on setting up buildings in Northampton indicated a 30% increment in its profits in 2017 from 2016. The company registered a £457.4m in returns in 2017 as compared to £352.3m at the same period for the first half of the year in 2016. This was after revenues reached £1.7bn, marking a 12% increment.
According to the building company, there was an 8% rise in sales made to 7,794 as compared to the previous year. The average prices of houses have risen to 213,262, which indicate a 4% increase. Although the price of houses in Northampton has continued to rise steadily making it difficult for more people to own these homes, the company is optimistic that this issue can be addressed. A rise in wages will be one of the main factors which will lead many potential homeowners to move into Northampton and avoid the hustle of commuting to work on a daily basis.
Mortgage lenders will also play a great role in solving the house menace by providing affordable loans to homeowners. Many first-time home buyers find it hard to buy a house as a one-time investment due to financial constraints. This is in contrast to other homeowners who can sell their property for a better one by adding a little money on top. First-time buyers will be the biggest beneficiaries as they would want to own homes in Northampton and avoid the issue of commuting, and hence cut fuel expenses incurred on their vehicles.
There is a concern in Northampton with existing homeowners finding difficulties in moving up the ladder. This phenomenon has caused stagnation in property distribution as first-time buyers mix with existing homeowners and depressed activity levels have been witnessed across the region. The region needs a balance in housing whereby existing homeowners can have a chance to upgrade to better houses by selling their houses to first-time homeowners who need some time to figure out how it is like to manage their own homes. Gradually, there will be a uniform distribution of housing among the first-time owners and the existing, which will play a crucial role in subsidizing the prices of houses in Northampton and the surroundings.
In the capital, the average house prices have reached around half a million pounds as compared to £250,000 average asking price in Northampton. A journey to London from Northampton by train takes less than an hour, while cities like Norwich and Birmingham have many business opportunities. These factors have compelled more homeowners to settle in the cheaper Northampton location while they work from London.
Steady increase in House Prices
According to BBC, houses prices in Northampton have attained a steady point. Analysis based on June 2017 figures as carried out by Office for National Statics (ONS) indicate that the prices of homes went up by nearly 0.8% or £2,000 to reach £223,000 on average. These figures give homeowners and builders a rough estimate of how much the house will be going for in the coming years provided the prices changes remain steady throughout.
The Financial Times indicates the lowest inflation rate for three months since May 2017. However, if the records would be compared to the same time in 2016, the inflation rate is only marginally down to 4.9% from 0.1%. According to ONS, the annual growth rate has remained broadly around 5% in 2017 despite its slowing down in mid-2016. The records also show that fewer buyers are able to acquire houses in Northampton on a cash basis as compared to those who use mortgages.
Political Uncertainty Stagnating House Prices
Political uncertainties and wariness with the approach of Brexit have brought about stagnation in the housing sector as indicated by The Independent. Many people have opted to remain in their current houses as they are unsure of the turn which housing prices will take following Brexit.
A survey by the Royal Institute of Chartered surveyors carried out in July 2017 shows that the number of members saying that the prices of houses have fallen is equal to those saying that it has risen. A deduction on those seeing a decline from those reporting a positive movement portrayed a positive balance in August 2017 of just 1%, a decline from 7% in June 2017, which marked the weakest measure since early 2013.
Predicting ahead, many surveyors have indicated that prices are expected to rise and fall in the next three months, September to November. A net 28% still predict an increase in house prices in Northampton over the next 12 months, a considerable strong figure but still lowest positive increment recorded since July 2016.
Private sector indices portray the same trend which is credited to transaction levels fallings, with both Nationwide and Halifax forecasting a reserved house costs in Northampton of 2% for the entire 2017. Potential homeowners in Northampton have a lot of factors to consider before settling on purchasing their dream houses. The risk of buying a home now is, however, lower than postponing the idea of buying a house when the country is considered to be politically stable.