The foundations of the Wigston property market have continued to be principally sound over the summer, yet the existing political macroclimate means that the critical element of consumer confidence has been reduced, and that is causing some potential Wigston property buyers and Wigston house sellers to falter slightly and hang fire on 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 for those with low deposits – on the day of writing this article there were 224 mortgage deals available where only a 5% deposit was required, and 5 mainstream lenders that would offer 100% no-deposit mortgages), Wigston buyers have a lot 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 Wigston follows that trend. Even with that in mind, property values have remained reasonably stable. The Land Registry has just released its House Price Index for Wigston and the surrounding locality and it makes for very interesting reading.
Overall, property values in the Wigston area are 4.7% higher than a year ago as the average property value in Wigston now stands at £204,500.
When I looked at the types of Wigston properties, a slightly different picture appeared:
- Wigston detached homes rose by 4.6%
- Wigston semi-detached homes rose by 5.1%
- Wigston terraced/townhouses rose by 4.6%
- Wigston flats/apartments rose by 1.8%
… and splitting down the Wigston property prices by type:
- Wigston detached £298,600
- Wigston semi-detached £199,200
- Wigston terraced/townhouse £154,300
- Wigston flats/apartment £109,600
Yet, Wigston Property Market Blog readers will know I always like to measure the health of the Wigston property market not only by house prices but transaction level too.
440 properties were sold in the last year in Wigston, lower than the 10-year average of 456 properties per annum
Considering the uncertainty the country has been facing 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 Wigston property market.
Now looking forward towards the end of the year, how will Wigston house values change under the new Prime Minister?
Wigston buy-to-let landlords and Wigston first-time buyers seem to be sustaining their previous activity levels, which is heartening news. It’s quite conceivable that both cohorts are presently profiting from the marginally increased numbers of Wigston 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, the effects of which have been rather short term.
That means that those selling their homes in Wigston need to be realistic with their pricing, and, as most sellers also buy a property, what you might lose on your sale you can make up on the purchase.
BoJo, Brexit… to be honest, these are all short-term distractions from the long-term issues facing the UK and Wigston 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 that, irrespective of short-term fluctuations that may (or may not) be caused by domestic and world events (including the ‘B’ word’), prices in the medium to long term will remain stable and increase.