26 Oct Birmingham Property News 2016
BIRMINGHAM PROPERTY NEWS 2016
The Birmingham property market has seen its ups and downs in recent years with the 2007 financial recession which hit the market hard then just recently the Brexit decision in June has had another negative impact on the property market. Properties in and around Birmingham are sticking on the market and vendors are struggling for a quick house sale.
On the bright side whith the new H2 rail link which should be ready by 2022, this should boost investment into the city and help the property market in and around Birmingham.
Houses that are on the market in the West Midlands saw a slump of around £3000 on average since the post-Brexit hit in June, with potential buyers worrying that there may be a second recession.
According to Zoopla on average £205,951 was the asking price of houses in the West Midlands down £3,322 on the previous month.
Across the whole country, Birmingham fared worse than others which vendors looking to sell their homes fast struggling to even get offers on the table, as a whole Birmingham’s property market was down 0.9%.
Analysis from RightMove said that enquiries for homes 2 weeks leading up to the referendum vote saw a 16 % fall in enquiries compared to the same time in 2015.
As 2015 was a general election year and the surprise result, it can’t be considered as a fair comparable so compared to the same time in 2014 the figures are pretty much the same.
So with that said there is an encouraging sign of a return to business as usual. So all in all that said the EU decision hasn’t put seller off completely, they are still wary but they will buy at the right price.
Rightmove’s report paints a rosy picture compared to the Royal Institute of Chartered Surveyors which suggest there are going to be sharp falls in both vendors and potential sellers which won’t bode well for vendors looking to dispose of their properties fast.
RICS report has taken into account all collected data after the EU referendum result, which 45% more surveyors saw a decrease rather than an increase in new homes coming onto the market during July. RICS also found that potential buyers were declining at their fastest rate since 2007.
Quick House Sale Market
According to most property websites houses in Birmingham are staying on the for an average of 93 days, which compared to the rest of the UK on average is 52 days.
To achieve a quick house sale in Birmingham as you can see by the timescales of properties on the market which says to us the market solely dependent on your price to get a guaranteed fast sale.
Entering into any house sale make sure you see a proof of funding that will determine how credible your buyer is.
The Future of Birmingham’s Property Market
Birmingham future looks bright, estate agents are pinning their hopes that the new HS2 high-speed rail link will revive the struggling property market.
If the project does go ahead Birmingham will be the first stop in 2026 and the only stop for a number of years, it will cut the 85 minute time to get to London to 50 minutes. Eventually, the line will connect to Manchester, Sheffield and Leeds, but many are claiming Birmingham is the biggest winner.
Most Estate Agents believe that the journey from Birmingham to London deters a lot of people potential buyers looking at commuting to the city off buying a property, but with the 50-minute commute to London centre would be attractive to potential buyers.
The hope is that the HS2 will revive city centre living within Birmingham, at present only 3,000 people out of a possible 1.1m population live within the city centre. Even though Birmingham’s property prices have risen 3% in the past year they still remain 9% down on 2007 levels.
Prior to the 2007 recession Birmingham had flamboyant schemes to develop the city centre, these schemes were put in the bin when the UKs housing market took a downturn and these developments looked impossible to sell the flats fast.
Potential buyers are now looking at investing outside of the city centre and into more affluent areas of Birmingham such as Edgbaston and Harborne.
Properties which are selling fast to the buy to let investors are in locations around Birmingham such as Solihull or Sutton Coldfield.
The second tier stamp duty has had a negative impact on the BTL market with potential buyers having to pay an extra 3% on top of the existing stamp duty.
Experts in the industry believe that the extra 3% levy imposed on these landlords will filter down and will be imposed on tenants rent.
According to local agents £1m plus home are struggling to sell quickly due to ever stringent lending loopholes, which has frustrated this area of the market.
Sutton Coldfield although has a good BTL market is struggling with residential sales due to the fact the area has been passed for a massive development plan to build 6,000 new homes on a greenbelt site just outside of the town.
A local MP has claimed that the planning permission granted is unnecessary as there is already a planning consent granted for 17,000 new homes being granted across Birmingham, plus a surplus of 11,000 empty properties across the city. The MP isn’t happy with the new planning application being granted on a greenfield site and he is adamant that brownfield sites should bear the brunt of new developments.
With all of these proposed developments doesn’t bode well for sellers looking for a quick house sale, with all of the extra supply of properties coming on to the market will decrease demand. Birmingham’s city council is well behind its target of 2,500 new homes to be built in the region.
Birmingham’s city council is well behind its target of 2,500 new homes to be built in the region which help the sell house fast Birmingham market.
New Development News
Birmingham Properties Group has announced a new development within the city centre which is part of a £5.5m refurbishment, the new scheme in the former office building called Galbraith House. The development will include 17,000 SQ F of luxurious accommodation along with a deluxe penthouse apartment which will have views across the city.
The development is situated close to the new Paradise Birmingham development. It will have the highest residential specification in the city and the hope is they will sell the apartments fast.
The penthouse will be the most expensive apartment in Birmingham and will command the height of opulence with views to match, local estate agent are expecting this to sell fast at a price of nearly £900,000.
According to BPG the level of interest has been amazing with most of the apartments sold already, off plan and the remaining to be sold by the end of the year the sell house fast Birmingham market is looking rosey.
The development consists of twelve two bed apartments, six one bedroom apartments and an amazing 2,734 sq ft penthouse.
Mr Tebbutt head of BPG said, ” it was a fantastic opportunity to revitalise a prominent building in the centre of Birmingham side by side to two prominent Paradise Circus and Snow Hill”.
He also added, ” there is high demand for high-end city centre living at the moment so this is a great opportunity for us”.
The Galbraith House is aimed not at the buy to let market but the owner-occupier market and will provide the very best standard with fixtures and fittings to match the price tag.