24/04/2024

2023 was a challenging year for the Staffordshire and Cheshire property markets with ever-increasing interest rates, a ‘technical recession’ and the cost of living crisis continuing to curb people’s dreams of moving or owning their own homes.

The premium end of the market managed to remain buoyant, with resilience perhaps coming from less reliance on mortgage borrowing, but confidence elsewhere definitely took a hit.

There are signs, however, of green shoots of recovery with more and more properties now coming onto the market in Staffordshire and Cheshire.

According to a recent report by Nationwide Building Society, house prices across the Northwest and West Midlands have been generally increasing year on year by about 1.7%. Meanwhile, The Bank of England held the base rate at 5.25% in March, but economists are predicting an interest rate cut during the summer and a second around the end of the year. The combination of rising house prices and falling interest rates should spell recovery in the housing market.

The budget might not have produced the much hoped-for stamp duty land tax cut for downsizers, but there are still promising signs with positive GDP growth in January of 0.3% and in February of 0.1%.

Perhaps people are feeling more confident that recovery is around the corner and, when combined with possible frustration at being forced to put home buying and selling plans on hold, many are deciding to take the plunge.

The cost of renting continues to spiral and is highly likely to be a factor motivating people to take that first step onto the housing ladder. We have also seen something of an upsurge in the purchasing of student properties by those with cash in the bank, often for their own children. Again, with rental charges so high, investing in a property for children at university can be a cost-effective solution.

While, for those at the older end of the market, downsizing or moving area to maximise their equity has proved to be an attractive prospect.

To conclude, I’d say that confidence is growing and the Staffordshire and Cheshire property markets look likely to experience something of a recovery through spring and summer.

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