Property values rose by 13.6% (Oct 13 to Oct 14) in Epsom. Good news all round, but when you consider property values in the town have previously dropped by 16.57% between March 2008 and June 2009, this is not as good as the media would have you believe. It should be no great surprise to hear that Epsom property values are starting to slow up as we head in to the New Year. Property values in the town were growing at an impressive 1.8% in July and 2.0% in August last year, but in Autumn months, they slowed down considerably, rising barely over 1% a month.
The reality is we have had a year and a half of decent market conditions in Epsom, but now all that pent up demand is starting to fade. The big question moving forward is whether the Epsom market will now be held back by affordability and restricted mortgage lending, and what long term impact this will have on the Epsom property market.
Looking at the UK as a whole, because we can’t look at Epsom in just its little own bubble, the recent rapid rise in house values in some parts of the UK in the early part of the year (especially in London), along with earnings growth that remain below inflation and the possibility of an interest rate rise over the coming months, appear to have tempered housing demand. This weakening in demand has led to a modest easing in both property price growth and sales. A moderation in growth looks likely into this year as supply and demand become increasingly better balanced.
Now with the General Election on the horizon, whichever Government takes power, they, along with the Bank of England, have a thorny job to do in balancing the expected rise in interest rates with the continued resurgence of the housing market, to ensure the property market doesn't drop and drag down the economic recovery forcing people into selling their property at a loss.
However, back to Epsom, long term property values which track peaks and troughs are more helpful to landlord investors. The questions I seem to be asked on an almost daily basis by landlords are:-
- “Should I sell my property in Epsom, or even buy another?”
- “Is the time right to buy another buy to let property in Epsom and if not Epsom, where?”
- “Are there any property bargains out there in Epsom?”