At 6.9% and 7.0% respectively, average annual price growth in the West Midlands Property market is slightly lower than the UK average. In the West Midlands growth is currently stronger than at any point since summer 2016. In eleven areas growth currently exceeds 7.5%. Although Rightmove report a slight fall in asking prices month on month, properties are selling more quickly than a year ago.
Average property prices in the West Midlands are more expensive than a year ago and activity across the market is robust. On average 3.3% of private properties are sold each year, with turnover in five areas currently 4% or above. Over 15,400 new homes were registered for sale during 2020, and nationally registrations have been on an upward trend since September.
demand will be further boosted from April
First-time buyers were particularly affected by the closed housing market and the stricter mortgage lending that followed. However, buyer numbers have recovered steadily, with transactions just 2% lower year on year during the final six months of 2020 (UK Finance). The number of High Loan-to-Value (LTV) mortgage products has also increased, Moneyfacts reporting there were 169 products available at 90% LTV in January, over double the number available back in July. Lending rates remain low, the average mortgage rate the lowest in history.
With regards to the rental market the outlook is positive. The motivation of tenants is definitely moving forward as they are aware of restrictions lifting now. The Birmingham Lettings team are seeing lots of enquiries for July through to Septemeber coming in already. With the increase in demand, rents are also increasing tentatively upwards. A large amount of new homes stock is also gearing up to launch with sites such as St Martins Place, Four Oaks House, Sherborne Quay Phase 2 and Equipoint.
In Solihull, the outlook is similar having seen an influx of applicants looking to rent in the Solihull area that are relocating from Hong Kong with BNPO passports. These tenants are taking advantage of the government Visa offering. Solihull is proving a popular location for families moving from Hong Kong with the emphasis of the high caliber of schooling available. Also, the notable success of Gymshark, with its global head office being based in Solihull has meant we have housed and seen a number of tenants move to the area due to coming to work for the company. It’s great to see a local company flourishing and as a result providing new jobs with employees looking to rent locally
Similar to Central Birmingham, rents have steadily increased despite the effects and issues of the pandemic. This can be attributed to both uncertainty from tenants who would be looking to buy opting to renew their current tenancies (less rental stock available due to tenants staying) as well as tenants looking to locate to the area from the city to get a more suburban environment with open space.
Tim Bannister, Rightmove’s Director of Property Data comments: “Concerns of a cliff edge for the housing market at the end of March have dissipated, partly due to the tax deadline extensions in all of the UK bar Scotland, but also because the already high level of buyer demand caused by the lockdowns has continued to surge since the start of the year. This demand will be further boosted from April by the new Government guarantees enabling lenders to bring back 5% deposit mortgages. With spring in the air and increasing confidence of a way out of lockdown confidence is returning to a market that is already buoyed by the stamp duty holiday extension announced in the budget.”
The West Midlands property market, with its convenient location and the investment in the region is seeing a surge in demand and if you are considering buying, selling or renting we would be keen to talk to you to discuss your needs and how we can help you. Just visit us here
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