Property Prices in Basingstoke – How are they performing in 2017?

With the date for the triggering of Article 50 now set for 29^th March 2017, I thought it would be interesting to look at some of the trends in property prices both in Basingstoke and nationally. It’s fair to say that although we still have two years before we actually complete the Brexit process, that we will all be eagerly watching how this progresses and what the impact may be on the property market in Basingstoke.

The National Picture.
 

	Ave Price Paid	Ave Price Now	Properties Sold	% Value Change
5 Years Ago	£165,947	£218,255	4,779,304	31.52%
12 Months Ago	£207,333	£218,255	995,373	5.27%
3 Months Ago	£215,137	£218,255	238,335	1.45%

*Source: The Land Registry

On the face of these numbers, the property market continues to look extremely healthy. However, from the start of 2017, we have seen indications of a slight slowdown in the market. This is particularly so in London, for both the numbers of properties coming to the market and the price they are achieving. 

The number of sold properties nationally during the last 3 months was 238,335, however is this a decline of 23% from the same period a year before. Despite this, prices have continued to rise largely helped by high demand for less properties.

Comparing the National Figure with Basingstoke

 

	Ave Price Paid	Ave Price Now	Properties Sold	% Value Change
5 Years Ago	£209,707	£303,194	13,940	44.58%
12 Months Ago	£285,205	£303,194	2,710	6.31%
3 Months Ago	£294,133	£303,194	672	3.08%

*Source: The Land Registry

 

It is also interesting to see in black and white, figures for the town you live in. There are approximately 225 properties sold every month in the Basingstoke area. What stands out from the figures is that Basingstoke has fared substantially better that the national average, with housing prices consistently increasing at rates over 5% and closer to 9% over the 5 year period.

However, we have seen a similar decline in the number of properties being sold. The number of properties sold over the past 3 months was 672, which is a decline of 20% from the same period a year before. Again, slightly better than the national average, but also helping to fuel the growth in house prices.

How has London fared?

	Ave Price Paid	Ave Price Now	Properties Sold	% Value Change
5 Years Ago	£290,379	£490,718	524,189	68.99%
12 Months Ago	£464,647	£490,718	90,918	5.61%
3 Months Ago	£470,541	£490,718	19,258	4.29%

*Source: The Land Registry

It is no surprise that London prices historically have risen faster than anywhere else in the country, although currently that honour now goes to Manchester at 8.8% per year. What is much more marked is the number of properties selling, which has declined 40% when you compare the last 3 months with the same period a year ago. This is not surprising given the heavy dependence on foreign buyers and on funding for these purchases from abroad being much more scarce since the vote for Brexit.

The tables above are all based on average property prices, but it is fair to say that the higher value properties have been affected more, particularly in London.
 

The good news is that if you own property in Basingstoke, although we expect sales volumes to be flat in 2017, the continue demand for property in both the sales and rental markets will continue to push up prices, and early indications would suggest this will continue to be in excess of 5%.