Average price of a home is £222k amid rising sales
AMID a buoyant housing market, a firm of leading estate agents says East Staffordshire ticks all the boxes for people looking to relocate.
An expert at Savills said towns such as Burton and Uttoxeter meet house buyers’ wishes for good broadband so that they can work from home, a sense of community, good schools and leisure.
It comes as it emerged the average house price in East Staffordshire, including Uttoxeter and Burton, was £222,000 during the 12 months to January 2021, according to the Savills Repeat Sales Index. This is 4% higher than the 12 months to January 2020.
Savills says the Staffordshire property market continues to defy expectations with the number of house sales agreed in the county increasing by 37% between June 2020 and March 2021 versus June 2019 and March 2020.
However, according to new research from the firm, new instructions in the first quarter of 2021 were down 2% at a county level compared to the same period last year, underlining what has been labelled “prime conditions for sellers”, with demand far exceeding supply.
This, and the growing importance of good broadband connectivity to accommodate more flexible working patterns in the future, was the message from local and national property experts, who presented analysis of the Shropshire and Staffordshire markets to local buyers and sellers at a recent online event.
According to a recent survey carried out by Savills, the rollout of the vaccine and relaxation of lockdown has not only boosted confidence but also strengthened a commitment to move in the short, medium and longer term.
With buyers seeking access to more space both inside and outside of the home as a result of Covid-19, coupled with the growing importance of connectivity for those splitting work between the home and the office, Shropshire and Staffordshire present realistic relocation options through a mix of open countryside, good schools and value for money, said thge company.
During the online event, and by way of comparison, it was highlighted that for £1.85 million an eight-bedroom property in Shropshire could be bought at £220 per sq ft, whereas £1.95 million is the guide price for a one-bedroom apartment in Knightsbridge, London, which equates to £2,777 per sq ft.
According to the Nationwide house price index, annual house price growth during the first three months of this year across the West Midlands was 7.6% compared to 6.3% across the UK as a whole, with a similar picture also emerging in the prime markets, which represent the most aspirational and desirable properties that account for the top 5% of UK sales.
Prime values across Shropshire and Staffordshire increased annually by 6.4% during the first three months of this year, which was the highest annual growth since 2010. However, despite the strong growth, values are 12% below the peak of the market in 2007 demonstrating not only the capacity for further growth but also the value for money on offer, particularly when property size is considered.
Referring to the Staffordshire market, Tony Morris-eyton, head of residential sales at Savills in Telford, said: “The last 12 months have seen the most significant shift in buyer behaviour that I have seen in my entire career. The main drivers in the East Staffordshire housing market is a desire for outside space, home working – including good connectivity, a sense of community, leisure and good schools.
“Staffordshire as a whole is a popular relocation market and we don’t see that changing with what locations within the east of the county, such as Uttoxeter, Burton-upon-trent, Stretton and Barton-under-needwood, have to offer.”
He went on: “The impact of the pandemic is such that in our latest buyer and seller survey the importance of locality is a prevailing theme among those looking to move.
“Whereas previously proximity to transport connections was one of the biggest drivers in house purchases, the effect of working from home has seen this fall behind a need for open space, closeness to family and access to local amenities. With noticeably less housing stock outweighed by significant increases in buyer registrations across Shropshire and Staffordshire, the time is clearly right to sell. These truly are prime conditions for sellers.”
Residential research analyst Faisal Choudhry added: “The outlook has improved since the beginning of the year given the speed of the vaccination programme, the expected relaxation of social distancing measures and government support for both jobs and the housing market.
“Looking further ahead, the Government will need to begin to recoup some of the costs of its pandemic support packages, something we might see once the economic recovery takes hold. This moderates price growth expectations later this year and through the next two years. However, in terms of house price growth, the market remains price sensitive despite high demand.”
Savills is predicting house prices in the West Midlands’ mainstream market will increase by 4.5% this year and by 24% in the five years to 2025. It means the average house price in the region would increase from £207,603 to £257,428 by 2025. Nationally prices are expected to increase by an average of 4% this year, with 21.1% total growth from 2021-2025.