So, a new decade is upon us and what can we expect for the year ahead in the Kenilworth Housing Market?
Needless to say the housing sector faced a number of challenges throughout 2019…some of which have been carried into the New Year. But all things aside, people are still moving house.
2019 in a brief summary saw nationally the number of sales transactions decrease by approximately 3% and prices increase marginally by 0.8%. Somewhat worryingly was that the number of houses for sale declined by 8% year on year. From such a decline in available properties to buy, one would have expected greater growth in prices than 0.8%. Less supply should result in house price inflation.
From our own performance we have seen similar declines in available properties, slightly higher transactional numbers in 2019 and possibly a stagnation in prices over the course of the year, so the market in Kenilworth has performed in line with the national picture.
Kenilworth has throughout the last decade been a great place to invest in property, be it as a homeowner or landlord. But, with greater taxation burdens for investment buyers we have seen a significant decline in Buy to Let Investors and as such lost what are usually the catalyst to a great many people moving home over the last 2 years. Incentives for First Time Buyers are limited to the Help to Buy Scheme resulting in a number of would be local purchasers looking at areas such as Rugby where there is an abundance of new Starter Homes to purchase that qualify for the Government Scheme and are also significantly cheaper. Radical thinking is required to resolve the issue both locally, and nationally, for First Time Buyers to be able to buy in the community they have grown in and contributed to beyond the bank of mum and dad.
The one thing that is noticeable is the cycle of a strong number of people moving into the area, and not to rent. It always amazes me how you see patterns emerging within property that have played out in previous years. Over the last 2 years we have valued a significant number of properties owned by people who relocated to Kenilworth in the 60’s and 70’s to take up new positions and those properties have not been sold, or even for sale over the last 50 years. We appear to be at the start of that period where those same people are releasing those properties and the buyers in similar circumstances to them 50 years ago are moving into the area.
That is the one thing that always amazes me about Kenilworth. Whilst other towns and cities experience significant peaks and troughs throughout the year, Kenilworth again proves its resilience. We predict an interesting year ahead if you are considering a move into or within Kenilworth. With the prospect of some very interesting houses coming to market I would recommend any potential mover contacts our offices and give us details of their search.