Last year the London prime market suffered with the absence of Russian buyers, but the mid-market remained busy. Now with rental costs off the scale, the young are desperate to buy despite the affordability gap being almost insurmountable. The prime market in the Home Counties remains resilient. Further west where commuting to the City is unrealistic, incomes have lagged and the cost of living has hit home prices. Second home stamp duty surcharges have also been a drag on prices.
The current climate provides a good opportunity for buying in the less sort after regions such as ours. The age of WFH is rife in the area. There is some pullback from the Budget and the pressure to reduce interest rates is likely to see the base moving down to around 4%. Inflation will ensure some stability in the market, and we expect to see prices rise in tandem. The Shropshire housing market reflects a trend of modest growth, aligning with broader regional patterns. In 2024 the average house price in the area increased by 3.8% from 2023. Looking ahead, experts anticipate a 2.5% rise in UK house prices in 2025, with the Midlands potentially experiencing above-average growth. This projection is influenced by factors such as anticipated stamp duty changes in April 2025 and potential interest rate adjustments. Overall, Shropshire, North Herefordshire and the Marches property market demonstrates steady growth in sales and rental.
The reaction to the IHT fiasco on family farms has clearly been a shock to the Government so we may see thresholds rise shortly. On the ground there seems to be little negative reaction to land values with the demand for development and Green Energy rocketing. Even purchasers of formerly unloved hill farms have half an eye on wind turbine opportunities. £10k per acre for farmland seems to be the absolute base with Grade 1 going for as much as £15k per acre. As for protecting oneself from some of the blights above, the only way to secure your view is to own the land. Privacy remains desperately sought after.
The use of Buying/Search agents is witnessing exponential growth. Everyone’s circumstances are different, so please do call for an informal chat. With over 40 years of experience Stacks has 18 offices across the UK. We can help you with your property and land search either here in Shropshire, North Herefordshire and the Marches or around the country.
