With prices back up to their 2007 peak, the average house price in the village of Prestbury has now reached over £670,000. In 2016 the average home in Prestbury costs four times more than the North West average.
Recent research by Countrywide for Bridgfords reveals that the average price for a detached home within the village has reached £874,000, with terraced properties at the other end of the scale reaching an average of £300,000. The most expensive property currently for sale within the village stands at almost £5million.
Although there have been a number of developments in past years, mainly consisting of million pound plots, scope for new housing developments in the village remains limited due to its conservation status. As such demand for property continues to significantly outstrip supply.
Demand and positive house price growth are set to remain high due to Prestbury’s excellent transport links with direct train services from Macclesfield into Euston in under two hours, and Prestbury to Manchester City Centre in just 30 minutes. In addition, the excellent schooling within and around the village offers outstanding Ofsted ratings and both state and private school options. This, combined with the recent approval to proceed with the Kings School development on Alderley Road is also adding to demand for homes, especially for third time buyers who are mainly families looking for the best location to raise their children.
Factors such as these continue to draw people into the village from both neighbouring suburbs and locations as far afield as Harpenden St Albans. Buyers are drawn to Prestbury in the promise that they can enjoy rural living in one of the most desirable villages in the country with the hustle and bustle of city life on their doorstep.
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 Prestbury then have a look at what Bridgfords has to offer