Is the market slowing and how are house values in The Lakes and Dales affected?
Many in the financial world are predicting a significant fall in house prices and commentators have hailed the rush to buy in the countryside as over.
But the headlines don’t always tell you everything you need to know. It can pay dividends to speak to a property expert who is immersed in a particular area and knows the local market intimately. Let’s take a closer look at my area of The Lakes and Dales, for example, and you will see a more varied and positive picture.
Currently prices remain fairly high in The Lakes as a whole. At the same time, it is true that we have come off the top of the curve
Currently prices remain fairly high in The Lakes as a whole. At the same time, it is true that we have come off the top of the curve and have started to see prices drop slightly in our area.
Although property prices are falling this cannot really be seen yet in data sources such as the UK House Price Index from HM Land Registry as it works on a time lag, and newly sold properties need to go through the 10-16 week conveyancing time.
It is clear that houses are taking longer to sell, and the number of buyers has dropped. Gone are the days of best and final offers with 10 people bidding, and we are more likely to see a lower volume of interest.
However, we are absolutely nowhere near pre-pandemic house prices and at the present time this remains fairly stable, here in The Lakes.
we are absolutely nowhere near pre-pandemic house prices and at the present time this remains fairly stable
In fact, when it comes to homes valued at more than £1m and towards £2m, demand is high again. This is causing a slight lack of supply, meaning that many of these homes, when they do come to the market, are selling relatively quickly; with one caveat – if they are priced correctly.
Properties in The Lakes have always been considered to have a slight ‘bubble’ or buffer protecting them from economic or political downturn. Our location is highly sought-after and demand to live here creates this buffer compared to other places in the UK which could be hit hard by a difficult property market.
If we look back at the trends in the market over the last decade, demand has always been there for houses that look a certain way, and which are in certain locations. I believe this will always be true. Now, I am not saying that we will not see a further downturn of the prices in our area, as I believe we will, in time. But at the moment, this is very much not the case.
For example, if we look at a village like Sedbergh, we know it has a property market of its own due to the high demand in that particular area. This is unlikely to change, and it will likely be one of the villages where property values are more protected, compared to somewhere like Kendal for example.
Many lake frontage homes are highly sought-after and the days when you could buy something for under £2m are gone. These homes are now like hens’ teeth and premiums will be paid for them – if you know when and where to find them. And I do!
Experts in the financial world are predicting anything from an 8 per cent drop to a 12 per cent drop in prices. But this does not take into consideration highly unique properties, in highly desirable locations.
Experts in the financial world are predicting anything from an 8 per cent drop to a 12 per cent drop in prices. However, it’s worth bearing in mind that these figures fluctuate on a regular basis and don’t take into consideration highly unique properties, in highly desirable locations.
Whilst many commentators report that the rush to buy in the countryside is over, I have to say that at the moment there is still a steady flow of buyers looking to relocate to this beautiful part of the world. This creates demand within the area, but it would be foolish to make any future predictions at this stage when mortgage rates are still high.
I have seen many homes come to the market in the last few months as sellers try and take advantage of the potential high prices.
There is still a steady flow of buyers looking to relocate to this beautiful part of the world.
The right homes in the right places will sell fairly quickly in my opinion. Those once difficult homes might now start to stick around due to unrealistic prices or issues with location, design or work needed.
With high-value homes in The Lakes and Dales, buyers are often cash and sellers usually have little mortgage. It is likely that these special homes in the area will still sell for a reasonable price compared to smaller properties in the same area.
I believe at this stage it is fair to say that the market is still strong in both The Lakes and Dales.