Cheadle is on the up! With house prices rising a staggering 10% in the last year alone, demand for property in this area is leaving many neighbouring areas in the shade. With a 4% uplift in the sale of properties in the £500,000 to £750,000 price bracket, more prime properties are being sold in the area than ever before. New home sales are also on the rise in the area with a 4% increase since last year.
These price increases have been fuelled by a number of factors, not least the considerable business developments and employment opportunities in the area. The new Amazon distribution centre in Wythenshawe and the £1 billion airport expansion plans are just a few of the projects currently underway.
This investment is great news for Cheadle and its surrounding villages and more and more individuals are looking to settle in the area. Along with young families who wish to send their children to the area’s outstanding schools, the village is proving popular with commuters looking for fresh employment opportunities.
Property developers have recognised an opportunity to capitalise on this demand. Initiatives such as the long awaited development of the Grade II listed Barnes Hospital has resulted in the creation of 155 new homes including a mixture of apartments and spacious town houses constructed within and around the beautiful gothic building.
Success breeds success and with more businesses and property developments planned for the coming years, life looks good for the inhabitants of Cheadle. New employment opportunities, along with the excellent transport links means that those living in the pretty village of Cheadle can enjoy all the perks of living the village life, with the hustle and bustle of city life just a short train journey away, plus rising property prices to boot.
As markets go into turmoil at each bit of Brexit news, it’s worth looking behind the volatility and seeing what the latest set of economic numbers are actually showing us.
The big news this month is the pick-up in inflation. It only reached 1 per cent, half of the Bank of England’s target, but the market only expected 0.6 per cent and this has caused some anxiety. It’s not because we weren’t expecting inflation to pick up – the drop in the currency means that it is inevitable – but because the increase in inflation “is not explicitly linked” to the fall in Sterling according to the Office for National Statistics. Rather its rise is due to the cost of clothing and fuel compared with last year when their prices were particularly low.
That doesn’t mean we should not expect price rises. Oil is priced in US$ and a 16 per cent fall in the US$/£ exchange rate means that this will flow through. And producer prices are now increasing as the effect of Sterling’s fall against major currencies hits too. That will hit all of our pockets in the coming months, especially as the cost of food and fuel – essentials we can’t avoid spending money on, rise.
But better news is that the UK’s labour market is still holding up despite the changes in sentiment across the rest of the economy. Even better news is that wage growth is still outstripping inflation which will provide some cushion to rising prices.
The Brexit shock…
The vote to leave the European Union (EU) has unsettled the housing market, but the major driver of its performance will be the path of the economy. That is uncertain as the arrangements for decoupling from the EU and the effect this will have on trade have yet to be seen.
…will weaken markets…
In our central scenario we expect the economy to weaken and for this to affect house price growth and transaction levels as consumer confidence, household incomes and the labour market are affected. We expect UK house prices to see a growth of just 2.5 per cent in 2016 and -1.0 per cent in 2017, before recovering to 2 per cent in 2018.
… and the North and Midlands don’t escape
While London and South Eastern markets are expected to see the largest slowdown in prices, the North and Midlands are also expected to slow. Weaker economic growth takes part of the responsibility, but so too will uncertainty about export tariffs and inward investment, despite the support of a weaker currency. However we expect the North West to see the strongest growth out of all regions in 2018 to make up for price growth historically lagging behind that of the South.
Supply shortages will support prices while ultra-low interest rates will help to support demand…
The continuing lack of supply of property will remain a supportive factor for house prices across most of the country. And as the Bank of England has reduced rates and introduced more quantitative easing, mortgage finance will be available to help demand.
Uncharted territory brings big forecast uncertainties
There are higher than usual risks to these forecasts given the extraordinary nature of the challenges ahead. Most risks are to the downside and will be dominated by the UK’s ability to leave the EU in an orderly fashion and maintain its trade links and markets.
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If you are looking to buy a property in Cheadle then have a look at what Bridgfords has to offer