Our local market
Homes in Cheadle Hulme continue to be in high demand. Its collection of outstanding schools, including Cheadle Hulme High School and Bradshaw Hall Primary School are one of the main attractions of the area. Many households relocating into the area are therefore in search of a family-sized home and are often upsizing from an apartment in neighbourhoods closer to Manchester city centre, such as Didsbury, or are first-time buyers.
A total of 515 homes were sold in Cheadle Hulme over the last 12 months, averaging around £274,000. This is almost twice the regional average of £141,000. The 1930’s semi-detached house is the mainstay of the market and has accounted for 41% of sales over the last year. Despite accounting for such a large proportion of sales, demand for this type of property is still outstripping available supply. The shortage of these homes available to purchase and the jump in price to a four bedroom detached property has created a sellers’ market and fuelled house price growth.
The bigger picture
The UK housing market has proved resilient since the EU referendum, supported by economic performance that has exceeded expectations. However, official Brexit negotiations are yet to begin and financial markets are still unsettled by the uncertainty. Activity rates across the housing market are more subdued than a year ago, mortgage lending is down and, as a result, transactions have dipped by 8.2% (HMRC). The lack of available stock however, has supported house price increases at both national and regional levels.
Meanwhile, a pick up in the availability of finance to homebuyers and continued low mortgage rates could boost transaction levels at the beginning of 2017. This, combined with low stock levels and signs of improved demand, is likely to exert some upward pressure on prices in the short term.
But there is a risk that a weakening economy could undermine demand and prices. As such we are forecasting a price fall of 0.25% in 2017.
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