Cheltenham house prices rose more rapidly than any other part of the UK in 2017. We have continued to see Cheltenham property prices raise nearly five times the UK average, which has been an increase of 2.7% throughout 2018.
According to Zoopla, the last 12 months has shown a significant increase of market activity for house prices in Cheltenham.
Brexit is leaving a particular uncertainty in the housing market, so increased house prices must definitely be a good thing for Gloucestershire’s economy. Although, not everybody buying property in Cheltenham feels this is an advantage nor is it necessarily a good thing.
Rising house prices are good for those who own a house, unfortunately it’s bad news for those trying to get on the property ladder. It means that first time buyers have to devote a high percentage of their income to saving for a deposit and paying a mortgage.
Samantha Bond, a buyer looking to purchase in Cheltenham has struggled to land a property. She has been looking for the last eight weeks and has put in fourteen offers on seven different properties. Unfortunately Ms Bond was outbid on all the properties, including one property which went for £45,000 over the asking price.
“I can’t believe how quickly property is going in Cheltenham. I have offered more than the asking price on all the properties I have bid for, I always get outbid by a considerable amount more by another buyer” said Ms Bond.
After speaking with R.A Bennett’s estate agent Jack Davis, its apparent the rise in house prices doesn’t reflect strong, sustainable demand, it reflects a shortage of supply in the market, therefore it is misleading as a sign of the underlying strength of the housing market and economy.
Mr Davis says: “a lot more people are trying to get onto the property ladder, but not enough people are selling in Cheltenham. People are either trying to sell as quickly as possible or stay put, this may be down to the Brexit vote. Regency style properties have always been more desirable and Cheltenham has always done well in the housing market. People of the older generation are paying more to secure properties and are usually cash buyers”.
Another estate agency source has also said “first-time buyers are urged to buy new homes, as the help to buy scheme is becoming more popular within new builds and can help younger people get on the ladder. Period properties are much more desirable and people will pay over the asking price. In one instance, a property was up for £350k in Pittville Lawn and went for £100K more”.
Is pricing these properties lower than their worth a tactic by estate agents?
Do estate agents know the property will go for much more than its asking price?
“I don’t understand why you can’t just place one offer, estate agents will send the bids to best and final offer to squeeze more money out of people. It’s soul destroying and I don’t know what to offer, they don’t give anything away” said Ms Bond.
Mr Davis says: “we don’t advise buyers on what to offer, we simply tell them to offer what they think it’s worth”.
Thanks to @KlaraChelt for raising the important issue of housing for younger people. Cheltenham needs to attract and retain them. Starting point should be to accept we need more new homes in and around the town. JCS/local plan will will deliver that. https://t.co/bGwIf5fWwZ
— Max Wilkinson (@mpmwilko) January 26, 2018