Property values in Grantham rose
by only 0.2% in March. This follows several months of sluggish activity in the Grantham
property market in the run up to the Election, putting the average price of a
property in Grantham at £176,400, 3.8% higher than in March 2014.
Interestingly, the Council of
Mortgage Lenders and Estate Agent trade bodies over the last few months have reported
seeing a fall in mortgage lending and enquiries from prospective homebuyers. This
is important because it comes amid an overall fall in housing market activity
in Grantham. Data from the Land Registry said completed house sales in Grantham
in the three months to January 2015, (the most up-to-date figures available)
fell by 13.22% compared to the same three month period up to January 2014.
However, I believe that the
slowdown in property sales in Grantham is supporting Grantham property values,
as there is a shortage of houses coming onto the market. Even though in the
whole of the first Quarter of 2015, Grantham property value increases may seem
subdued when compared to 2014, let us remember, property values are still
rising well above the level of inflation.
As I have said many times before,
the population in Grantham is growing at a much higher rate than the number of properties
being built. This increasing demand for a roof over people’s head, which is
outpacing the supply of new houses being built in Grantham, is creating a severe
imbalance in the Grantham (in fact the whole of UK’s) housing market, thus making
homeownership an ever increasingly distant dream for many of Grantham’s
potential first time buyers.
In fact, I still maintain the
view that house prices are likely to rise by around 3 to 5% in Grantham in
2015, even after taking into account this blip at start of the year. The reason
being is that the rise reflects both strong economic conditions and steady
market conditions with (and this is the most important factor) very low numbers
of properties on the market.
Many Buy to Let landlords know
that investing in the Grantham property market is a long-term strategy of 10,
20 even 30 years. Governments come and go, but unless South Kesteven District
Council start to build hundreds of new properties a year to make up for the shocking
lack of supply, Grantham people will always want a roof over their head, and
irrespective of which party is in power, if there aren’t any council houses and
they can’t (or are unable to buy), a demand for rental properties will always
remain.
As my existing Grantham friends will testify, whether you
manage your property yourself, or another Grantham agent manages your
properties, everyone is always made to feel welcome when they pick up the phone to discuss anything to do with the Grantham
property market, how Grantham compares with its closest rival towns.
I don’t
bite, I don’t do hard sell, I will just give you my honest and straight talking
opinion. However, if you are too busy to pop into town, you could always visit
the Grantham Property Blog http://granthampropertyblog.blogspot.co.uk/
for advice, intelligent commentary and
analysis of the Grantham Property market.
