“How much would it cost to buy all the properties in Tamworth?”
This fascinating question was posed by the 14-year-old son of one of my Tamworth landlords, he’s telling me that he’s going to be a property tycoon. I thought to myself, that over the weekend, I would sit down and calculate what the total value of all the properties in Tamworth are worth … and just for fun, work out how much they have gone up in value since his son was born back in the autumn of 2002.
In the last 14 years, since the autumn of 2002, the total value of Tamworth property has increased by 79% or £2.41 billion to a total of £5.46 billion. Interesting, when you consider the FTSE100 has only risen by 68.9% and inflation (i.e. the UK Retail Price Index) rose by 38.7% during the same 14 years.
When I delved deeper into the numbers, the average price currently being paid by Tamworth households stands at £201,732.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Tamworth; the average numbers come out like this ..
|Tamworth Property Market|
|Average Value of a Detached Property||Average Value of a Semi-Detached Property||Average Value of a Terraced/Town House Property||Average Value of an Apartment|
… yet it got even more fascinating when I multiplied the total number of each type of property by the average value. As detached houses are so expensive, when you compare them with the much cheaper terraced/town houses and apartments, you can quite clearly see how valuable detached properties are in terms of total pound note value, when compared to the value of the terraced/town houses and apartments.
|Total Value of all the Tamworth Detached Properties||Total Value of all the Tamworth Semi-Detached Properties||Total Value of all the Tamworth Terraced/Town House Properties||Total Value of all the Tamworth Apartments|
So, what does this all mean for Tamworth? Well as we enter the unchartered waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Tamworth remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.
Tamworth house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth. Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Tamworth not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Tamworth has always, and will always, ride out the storm.
In the coming weeks, I will look in greater detail at my thoughts for the 2017 Tamworth Property Market. As always, all my articles can be found at the Tamworth Property Market Blog www.Tamworthpropertyblog.co.uk
If you are a landlord or thinking of becoming one for the first time and you want to read more articles like this about the Tamworth Property Market, together with regular postings on what I consider the best buy to let deals in Tamworth (out of the many of properties on the market, irrespective of which agent is selling it) then feel free to get in touch!
Email me on Lorraine@hallandthompson.co.uk or call on 07531484956.
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