The foundations of the Rochester Property Market over the summer have continued to be principally sound; yet the existing political macroclimate means that the critical element of consumer confidence has been reduced and that is triggering some potential Rochester property buyers and Rochester house sellers to falter slightly and hang fire making any firm decisions on property.
With record low interest rates at 0.75%, low unemployment rates of 3.8%, and decent mortgage availability (even those with low deposits - there were 224 mortgage deals available on the day of writing this article where only a 5% deposit was required and 5 main stream lenders that would offer 100% no deposit mortgages), Rochester buyers have a lot going in their favour, aside from the perceived political uncertainty.
Interestingly, Rightmove have stated there are more properties for sale today in the Country, than at any time since 2016, and Rochester follows that trend. Even with that in mind, property values have remained reasonably stable as The Land Registry has just released its House Price Index for Rochester and the surrounding locality and it makes very interesting reading.
Overall, property values in the Rochester area are 2.3% higher
than a year ago as the average property value in Rochester now stands at £299,900.
When I looked at the types of Rochester properties, a slightly different picture appeared ..
· Rochester Detached homes rose by 3.1%
· Rochester Semi-detached homes rose by 3.3%
· Rochester Terraced/Town-House rose by 2.1%
· Rochester Flats/Apartments rose by 0.4%
and splitting down the types of Rochester into property types ..
· Rochester Detached £479,200
· Rochester Semi-Detached £304,400
· Rochester Terraced/Town-House £243,500
· Rochester Flats/Apartments £184,500
Yet, Rochester Property Market Blog readers will know I always like to measure the health of the Rochester property market not only by house prices but transaction levels as well ..
1,250 properties were sold in the last year in Rochester,
lower than the 10-year average of 1,461 properties per annum
Considering the uncertainty the Country has been through in the last three years with the ‘B’ word issue, I don’t think that’s too bad and shows the underlying resilience of the Rochester property market.
Now looking forward towards the end of the year .. how will Rochester house values change under the new Prime Minister?
Rochester buy-to-let landlords and Rochester first-time buyers seem to be sustaining their preceding activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Rochester homes on the market, which not only offers them greater choice, but aids with their negotiations. The suggested Stamp Duty changes made me look at previous Stamp Duty changes in the last decade and their effects have been rather short term.
That means those selling their homes in Rochester need to be realistic with their pricing, and, as most sellers also buy a property, what you might lose on your sale you will make up on the purchase.
BoJo, Brexit … to be honest are all short-term distractions from the long-term issues of the UK and Rochester property market. Until we start building at least 300,000 properties a year to meet the demand for UK property, demand will always outstrip supply, meaning irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices will always in the medium to long term remain stable and increase.
One place for more information is my Medway Property Market blog. If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Medway property market together with regular postings on what I consider the best buy to let deals in Medway, then it is well worth reading. You can also email me at firstname.lastname@example.org
If you are in the area feel free to pop into the office which is based at Station Road, Strood, Kent, ME2 4WQ
Don’t forget to visit the links below to view back dated deals and Medway Property News.