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- firstname.lastname@example.org or call me on 07794056668