Staines Property Prices – How do They Compare to the 2007 Boom?

Many landlords have been chatting to me recently about stories in the press and voicing their concerns about booming house prices and whether we are heading for another “property bubble”?

If you recall, in a previous article, I mentioned that property prices had dropped quite considerably in Staines after the property crash but, since 2009 they have been growing.  I took the time last week to look at every property sale in Staines in the last few months (and there were a lot sold!) and then looked to see if any of the same properties had also sold in 2007.  There were plenty such properties in Staines and the numbers suggest that property values are now 17% higher than they were at the 2007 peak.  

So does that mean that Staines property prices are too expensive, especially when we are so far over the peak 2007 prices?

Since 2007, inflation has risen by around 19%.  The average value of a property in Staines in late 2007 was £309,000.  Today, we know that figure is 17% more at £361,600 (17% higher).  However, during that time we have had 19% inflation, so if property values had risen by inflation, the average Staines property would be £367,700 (£309,000 + 19% inflation equals £367,100) . Therefore, property values are actually 2% lower in real terms than they were in 2007 (19% inflation – 17% capital growth = 2% lower).

Most people think inflation is a bad thing eating away at the real value of your savings.  It can however be advantageous to property investors.  My answer to landlords is to get the best advice and opinion you can.  Speak to me, speak to others, do your homework and drive a hard bargain when buying, thus ensuring when price yields do start to rise at the levels that they were in the early part of 2014, you are in pole position. 

If you are a landlord in Staines and want to pick my brains on any aspect of the local property market, or need an opinion on what (or not) to buy, send us an email to trevor.cook@martinco.com or joy.cook@martinco.com or pop into our office on the High Street in Staines (We don’t bite....honest!!!!).