Bexleyheath Property Values rise by 1.2% month on month

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A few months ago, I was grabbing a quick bite to eat from Melucci’s in Bexley Village when a suited gentleman approached and asked if I am the person who writes the newsletters about the Bexley Borough property market. We ended up having an interesting chat about the local property market, as he was concerned that his daughter would never be able to buy a place in Bexleyheath she can call home.
Using the Land Registry and Office of National Statistics, I have done some research that shows that overall, month on month, Bexleyheath property values increased by 1.2%. The year on year figures demonstrate that the value of residential property in Bexleyheath has increased by 13.3% in the year to the end of February 2016, taking the average value of a property in the council area to £323,700. When we look at the last few months’ figures and see the patterns that seem to be emerging, things get even more interesting:
·         January 2016             - a rise of 0.8%
·         December 2015         - a rise of 1.8%
·         November 2015        - a rise of 0.7%
Recent articles have addressed the fact that not enough properties have been built in Bexley Borough over the last 30 years. This lack has been the biggest contributing factor to Bexley Borough property values still being 305.12% higher than in 1995. At the risk of repeating myself, until the government addresses this issue, and allows more properties to be built, things will continue to get worse. The UK population grows at just under 500,000 people a year (around 226,000 people because of higher birth rates/people living longer and 259,000 net migration) whilst the country is only building 152,400 properties a year. It’s no wonder demand is outstripping supply.
Furthermore, people don’t move home as much as they used to. This means that fewer properties are coming onto the market. Consequently, there isn’t enough choice of property to buy, so people thinking of moving are discouraged from putting their property on the market, creating a vicious circle. The imbalance between demand and the number of properties for sale is causing pressures in Bexleyheath – and the rest of the UK.
What do I see in the future for the property market in Bexley Borough, and my new friend’s daughter? I firmly believe that we are seeing a change in attitude towards home ownership in Bexley and across the UK. In the 1960s-90s, everyone wanted to get onto the property ladder. Since the 1990s, the British in general, and especially younger people, have slowly started to change our attitude to homeownership. We are moving towards a more European model, where people choose to rent in their 20s and 30s (so they can move freely without being tied to a property). The same people inherit money in their 50s when their property-owning parents pass away, allowing them to buy property themselves. This is the pattern in Germany and other sophisticated, mature European societies. The concerned gentleman shouldn’t worry too much about his daughter. She will get to buy her own place, just later in life than he did.
Regardless of the way Britain voted on June 23rd, perhaps we are more European than we think!
One place for landlords and homeowners to find this information is on the Bexley Borough Property News Blog: www.bexleyproperty.co.uk. You’re also more than welcome to give us a call on 01322 559955 or pop in for a chat. Our office is located in the heart of Bexley Village (next door to the King’s Head Public House).

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