19% Drop in Telford Homes ‘For Sale’ in Last 3 Months

19% Drop in Telford Homes ‘For Sale’ in Last 3 Months

What does this mean for Telford property owners?

With most families home-schooling their children in lockdown and the forthcoming Stamp Duty Holiday deadline fast approaching, fewer Telford properties have been coming onto the property market since the new year; a 19% drop within the last three months. 

For the past couple of decades, the New Year is the busiest time for Telford estate agents’. Yet, since the ending of lockdown 1.0 in the late spring of 2020, nothing has been normal about the Telford property market.

Throughout the summer, the number of properties in Telford coming onto the market steadily rose to its peak in November. The number of properties then becoming sold subject to the contract (STC) rose even higher.

The peak of the number of Telford properties on the market in autumn was 567 – that now stands at 461.

The first lockdown caused many homeowners to desire extra space for their new lifestyles, including office space and more sizable outdoor areas. This was further exacerbated by home movers also trying to take advantage of the Stamp Duty Holiday to save themselves money on this tax.

The desire for moving house meant many more properties across Telford came onto the market within the last six months of 2020, compared to a typical year. Homeowners who made this decision last year are now likely to be sold (STC).

How does Telford compare to other property markets, and what does this reduction in Telford properties on the market mean to homeowners and landlords?

There are 19% fewer properties on the market today in Telford, compared to 12 months ago.

However, the complete opposite is taking place in London. There are currently 47,900 apartments for sale in London. In January 2020, there were only 32,600- a rise of 46.9%. This is due to the upsurge in homeowners eager to trade their city lifestyles for rural areas, and buy-to-let panicking over falling rents.

Looking closer to home, there are

9% fewer apartments for sale in Telford than a year ago and 23% fewer semi-detached properties.

When there is a reduction in the supply of anything and demand remains stable, there will be consistent upward pressure on Telford house prices.

Will the overall demand for Telford property continue to be stable?

Lockdown 3.0 will probably cause another wave of Telford homeowners wishing to move. The last property crash (the Credit Crunch in 2009) was caused by a significant increase in properties for sale as homeowners lost their jobs and interest rates were much higher. People could not afford their mortgages, with led to many putting their homes onto the market. The oversupply of property for sale then caused house prices to drop.

Currently, there are 461 properties for sale in Telford. At the height of the Credit Crunch in January 2009, there was an eyewatering 1007.

This increase in available properties on the market caused property prices to drop around 17%. So, as long as there is no sudden change in the demand or supply of properties and interest rates remain at their current ultra-low level – the medium-term prospects for the Telford property market look good.

Whether you are a homeowner or buy-to-let investor in Telford, we would be happy to chat with you through the current property market.

Telford office: 01952 292 300

[email protected]