The Molesey Market As We Approach Brexit

24th October 2018

The "B" word is firmly placed into our vocabulary, but what is happening in the local Molesey property market in the run up to Brexit?

 

 

If you don't have the time to read all of this article, here are our key points.

  • Transaction levels have decreased in Molesey by 23.4% in the last 12 months.
  • Real-time property values for Terraced and Semi-Detached homes in Molesey have increased by 0.6% (£3500 average).
  • Asking prices in Molesey have increased by 9%.
  • Asking prices in SW London have decreased by -18%.
  • Asking prices in neighbouring towns are currently representing better value having acknowledged adjustment in the market.
  • Increase in asking prices likely cause of slow down in transactions.
  • Brexit has created some uncertainty from sellers which has restricted supply.
  • Low interest rates and consistent demand for Surrey commuter towns has maintained a strong market.
  • Stamp Duty changes and affordability concerns greater than those regarding Brexit.

 

Here's how Molesey asking prices compare to neighbouring towns that are equally as popular with buyers moving out of London.

Could this mean that transaction levels are being unneccesarily supressed by an uncompetitive increase in asking prices in Molesey when compared to neighbouring towns?

 

Want to get stuck into the nitty gritty? Let's get started.

Below is specific data collected from Land Registry archives, showing the average price paid, and the number of completed transactions for semi detached, and terraced properties in the KT8 postcode area. Each graph includes data between 1st January and 23rd October for each year so that we are able to compare to the current market with greater accuracy.

TOTAL TRANSACTIONS IN MOLESEY 2016, 17, 18 - 1st January - 23rd October.

 

 

AVERAGE PRICE PAID (£) FOR A SEMI DETACHED OR TERRACED PROPERTY IN MOLESEY 

2016,17,18 - 1st January - 23rd October.

 

What does this data mean?

From a transactional point of view, we have seen a sharp decrease in the amount of completed transactions compared to last year, yet prices have increased by just over £3500. This is expected with a reduced supply so nothing particularly unusual there.

By reading headlines in the media, you would be lead to believe the property market is in a terrible state, and Mark Carney, Governor of the Bank of England has claimed a potential value drop of up to 35%! We of course completely disagree with this estimation. To try and bring things back to reality we have compared this data with the period before and after the GLOBAL recession in 2008.

TOTAL TRANSACTIONS IN MOLESEY 2007, 8, 9 - 1st January - 23rd October.

 

 

AVERAGE PRICE PAID (£) FOR A SEMI DETACHED OR TERRACED PROPERTY IN MOLESEY 

2007,8,9 - 1st January - 23rd October.

 

Comparisons between the current market, and the global recession of 2008.

Aside from the fact that property values in Molesey have on average increased by 48% since 2009, we can see that already, transaction levels are lower right now than they were in 2008/09. Average prices for semi detached and terraced properties in Molesey decreased by 22% (approx. £84,000), given the banks were in crisis mode and the whole world was experiencing a financial meltdown, this is not difficult to understand. 

This is just our own opinion, but we cannot find any reasonable prediction that would conclude the value of property in the UK will be worse affected due to Brexit. The cost of borrowing is still at an exceptionally low level, so the demand is there but the affordabilty has hit its current ceiling, especially with the change in stamp duty bandings that has slowed movement at the upper end of the market.

 

The London Market.

Surrey's property market and consistently high performance in terms of transactions and value, is largely due to the ever increasing migration from buyers moving out of South West London. Whenever we are looking for insight into the local market in Molesey, we look at what is happening in driver towns in SW. For this example, we have used Clapham (SW4) as a comparable, to show how it stacks up against local areas, with Molesey of course being our main focus.

 

Transaction and property values are being affected in a similar way in SW4, as they are accross SW London. So in the present market, Surrey commuter towns like Molesey need to remain competitive. It is no secret the the London market relies on foreign investment to maintain a trend of property values increasing, but as the ripple effect into Surrey takes place, this has not translated into values taking a nose dive, they just aren't jumping up in the same way that we have grown acustomed to.

 

 

THINKING OF SELLING OR ALREADY ON THE MARKET WITHOUT SUCCESS?

CALL YOUR MOLESEY MARKET EXPERTS ON

0208 396 6717.

FIND THE CURRENT VALUE OF YOUR OWN PROPERTY IN 60 SECONDS HERE.

 

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