Perren Property Peek of the Week
Should we be concerned about the Dorking
Property Market?
Rightmove announces that the average
‘asking price’ fell slightly last month by 0.4% in the South East leaving them
5.8% higher than a year ago.
Looking at all the data regarding the
Dorking property market and putting aside the need for more houses to be built
in the next decade to balance out the increase in population. My research shows
there is a huge gap between what property buyers want and what is available to
buy.
Many more buyers are looking for the
smaller one and two bed properties whilst there is still a larger proportion of
the four and five bed properties.
Demand for smaller properties comes from
both first time buyers and the growing number of buy to let landlords.
In the last 15 years, the average
terraced house in Dorking has risen in value from £283,266
to £371,894 whilst the detached house has risen in value from £657,830 to £890,193.
Nothing seems amiss until you look at the percentage growth. The terraced house
has grown in value by 34.66% and the detached house 33.12% meaning the gap
between the inexpensive terrace’s and expensive detached properties has in
percentage terms narrowed. This isn’t
just in Dorking where it is happening but all across the country.
More houses need to be built, not only
in Dorking but in the South East and the UK as a whole. There is a huge demand for affordable starter
homes. For both tenants (and the landlords that will buy them) and first time
buyers. Unless we can get more building land the issue will continue to worsen.
The country needs 200,000 houses built a
year to keep up with demand. In the last three years the average amount of
properties built were 141,133 a year. Unless acres and acres of beautiful
greenbelt is built on demand will always exceed supply when it comes to
property for the foreseeable future.
Therefore buy to let investment in the
local Dorking property market could be the best move.
There are many hoops to jump through
when it comes to investing in property. You must take lots of advice and seek
out the best opinion. If you would like to have a chat about the local property
market or regarding buy to let then please do get in touch- charlotte@perrenproperty.co.uk
or call me on 07794056668
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