What is the Knutsford housing marketing going to look like in 2018?
Located in the north west of Chesire East Borough, Knutsford is a small town of 13,000 people. This population accounts for 3.6% of the total population of Cheshire East. It is surrounded by Tabley, Toft, Booths and Tatton Estates. Green Belt land completely surrounds the town leaving no significant brownfield sites for development within Knutsford town.
Knutsford, like its neighbor Wilmslow, has been a traditionally high demand housing location and prides itself as being one of the most sought after locations within Cheshire East. This can partly be attributed to the large volume of high value jobs that it houses in the town as well as in its immediate hinterland.
Just as it is in other areas where housing demand is high and supply, the last decade has witnessed a rapid acceleration of house prices in Knutsford. This has made housing affordability a major issue in the town. Moreover, as the local economy has buoyed, in-commuting has significantly increased as fewer and fewer workers are able to buy local properties.
Between 2002 and 2016, house prices in Knutsford increased by over 50% and it was forecast that the increase would continue at an average of 5% per year. However, like the rest of the UK, it remains to be seen how Brexit is going to affect the housing market in Knutsford.
Knutsford house prices have held at a good level for many years. The average house price in Knutsford competes favourably with many of its counterparts in Southern England. Currently, market research puts the average house price in Knutsford at £462,370. Despite the uncertainty over Brexit, house prices continue to experience a steady though slow rise.
— Knutsford Directory (@Knutsforddirect) July 13, 2017
In Wilmslow, house prices have also been on the rise, especially terrace and semi-detached houses. This is in marked contrast with 2015 which saw a drop in prices from 2014.
In 2016 it was assumed that house price growth in 2017 would be flat because of Brexit. Britain’s shock decision to leave the EU left many analysts fearing that the vote would have a negative effect on Britain’s economic fundamentals such economic growth and trade and this in turn would lead to depressed house prices.
As of July 2017, the average house price in Knutsford stands at £462,370. This represents a rise of 0.77% since April 2007. However, compared to a year ago, this represents a fall of 4.32%. Thus it is clear that that the flattening or fall in house prices predicted following Brexit has come to pass in Knutsford. However, the continued rise in house prices in 2017 shows the housing market has began to recover.
With Brexit negotiations having started in earnest this year it is expected that in 2018 when the progress of negotiations become clearer, house prices in Knutsford will increase at a much faster pace. Being in the greater Manchester region, we expect to see house prices in Knutsford to increase much faster than other parts of the UK such as Scotland.
The certainty brought to the market by the continuing negotiations over the terms of the UK leaving the EU is just one of the factors that are going to fuel the rise of house prices in 2018. Another factor to keenly watch out for is interest rates. There is no doubt that the continued rise in house prices in Knutsford has partly been due to current low interest rate environment. Increasing mortgage approval numbers also good news for the housing market in Knutsford. If the low rates remain in place in 2018, as it is widely expected to be the case, then Knutsford house prices are likely to increase at around 5% or more in 2018.
The Echo are saying that Wayne Rooney is moving house so he is closer to Merseyside. He is moving from Mobberley to Knutsford 3 miles away ?
— Robert Starkey (@BobStarkey3) July 6, 2017
Another major reason that is likely to push houses up is shortage of houses in Knutsford. Compared to other parts of Cheshire East, Knutsford suffers a very serious housing shortage. It is partly because of this shortage that Knutsford’s residential houses are nearly double the prices of similar houses across the whole of Cheshire. With a booming economy powered by a strong service sector, the town’s population is expected to continue growing fast further putting a strain on the existing house supply. This problem could partly be solved through construction of numerous new houses. However, a combination of geography and regulations has resulted in very low level of house building in Knutsford in the recent years. For instance, thanks to the town being surrounded by Green Belt land, there are very few sites where new buildings could be constructed. This means that while demand for housing is going to increase significantly, supply is going to remain almost constant leading to relatively large increase in house prices from 2018 going forward.
This forecast, however, doesn’t apply to very expensive houses that are over £1m. Since it was hit by the stamp duty rise of 2014, the market is yet to recover fully and the uncertainty over Brexit has only made things worse. It is likely that the high end house prices will remain depressed in 2018 and may only start rising in 2019.
Eddison Wells is a mortgage brokerage based in Altrincham. With a wealth of knowledge, Eddison Wells is ideally placed to provide a comprehensive range of financial products. Providing the highest quality service at the most affordable price is a prerequisite and a firm ethos – visit their site at eddisonwells.co.uk, or call one of their advisors now on 0800 808 9981.