I was chatting with a new landlord recently who was
interested to hear what type of property has increased in value the most in
Chichester. I took a look at some stats, which I thought you might find of
interest.
In the past 12 months, the average asking price in
Chichester is down by 8%, currently standing at £325,000. It was interesting to
see though that the average asking price of flats in Chichester has actually
increased by 17% whilst the average asking price of detached, semi-detached and
terraced houses have all dropped.
If we look a little further back though, this story
is completely reversed. Asking prices in Chichester have increased by an
average of 27% in the past decade. Yet in this timeframe it is Chichester’s
flats that have increased the least (+14%), being outperformed by detached
houses (+17%), semi-detached houses (+41%) and terraced houses (+51%).
You could therefore conclude that flats have had a
great run of it in the past 12 months, whilst in the long-term the enduring
popularity of a house is the more popular choice, which leads to greater
capital growth.
It’s a similar narrative when we look at the size
of the property in question. In the past 12 months the smaller properties (with
one and two bedrooms) have increased the most (up 3% and 6% respectively)
whilst large houses with five or more bedrooms have slumped by 26%. Yet when we
look at the data over the past decade, it is the large houses with five or more
bedrooms that have increased in value the most (by 57%) whilst the one and two
bedroom properties have vastly underperformed, increasing by just 2% and 6%
respectively.
Whilst all of this data only compares what is on
the market now against what was available exactly one and ten years ago (and
thus it’s conceivable that particular month wasn’t reflective of overall
trends) there does seem to be some logic as to why we are seeing the above
patterns.
You see, ten years ago is when the credit crunch
started to bite. The lower end of the market was more susceptible to the
effects of this than the top end properties, which is why a decade on the
larger houses have outperformed the smaller houses and flats. As credit in the
way of mortgages becomes more readily available though, the lower end of the
market continues to outperform, catching up some of the ground it has lost to
the more expensive properties in recent years.
(This article was featured in the Chichester Observer's property section on 14th September 2017)
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