The average asking price of the 936 properties currently on the market in York is £300,180 according to home.co.uk. This is considerably higher than UK average property prices but there has actually been a decline of 2.42% in York asking price values from the year before when properties were valued at £307,626.
However, this is not indicative of York ‘sold’ property prices which are actually up in value by 4.22% according to the Land Registry. Lower asking prices could be a sign of growing uncertainty in the market but this can be dispelled by landlords and homeowners seemingly paying more for their investments year-on-year, meaning there still exists consumer confidence in York property. This is great news for people already on the property ladder knowing that their properties are ever-increasing in value but not so much for those first-time buyers who are still trying to ‘get a foot on the bottom rung’.
Anyone who has an interest in property will know that there have been a number of changes brought on by the government over the last few years to help cool the market (specifically for landlords) such as the changes to wear & tear allowance, BTL stamp duty, reductions in mortgage interest relief from one year to the next. Whilst this has had an impact on buy-to-let sector, the above figures would indicate that this has not cooled property prices in York at all.
What has changed is the type and size of property in the York market. There are smaller and less expensive properties advertised in York which will reduce the average figure above i.e. there are 37% more one bed and 22% more two bed properties on the market and less three and four bed properties than there were this time last year.
To go into a little more detail, there are currently 39% more flats on the market for sale than there were 12 months prior, although this is likely down to the number of new developments in York being developed and sold (whether they be already built or off-plan). Terraced houses on the market are up by 16% from this time last year and detached and semi-‘s are down by 16% and 5% respectively.
Data provided by Home.co.uk
This translates to prices increasing in these categories whereby flats have increased in value by 1.99% from last year and detached houses by 5.28%. It is worth mentioning that whilst one would expect with increasing supply, that prices would fall, with housing this is not the case. Even with 39% more flats on the York property market, property values are still increasing in value.
Going back to the level of government intervention, I would imagine landlords would have, over the last couple of years, taken stock of their portfolio’s and rather than, there being an exodus of landlords out of the market, the savvy ones have just found ways of re-investing in property to mitigate their tax liability e.g. transferring properties in the names of their spouses, buying properties as a limited company rather than as an individual etc.
In light of this my expectation is that over the next couple of years there will be a decline in the (for want for a better term) amateur landlord who has not got their tax affairs in order. There is still clearly great value to be had investing York property but now more than ever, it is worth speaking to an Accountant or Financial Advisor for advice on how you can maximise profitability in your investment.