I read an interested article in the Manchester Evening News today. It was explaining where in Greater Manchester house prices were going up by the most – percentage wise.
North & East Manchester
It was interesting to see 6 of the top 10 places were taken up were taken up by areas in the North and the East of the city. Places like Altrincham and Didsbury are usually top of these types of lists usually so it was nice to see the other side of the city at the top of a list like this for once.
However, when you sit down and look at this in a little more detail, it is important to note that this table is based on percentage increases rather than actual increases. When you are looking at houses prices of around £150,000 a 3.5% increase is around £5,000. If you look at the areas such as Altrincham and Didsbury, on house prices of say £300,000 you need £10,000 rises to see the same sort of percentage so that probably explains why less expensive parts of the city are showing up better.
But lets not detract from what this table is showing, house prices in the North and the East of Manchester are holding up well and even increasing despite Brexit which seems to be in part due to the investment from Manchester City in the area, which goes to show that when investment is made in an area it can help to improve the surroundings and make it more desirable. It also means if you are looking for a first home, some of these areas could be a great place to buy even if it is not necessarily where you plan on settling down.
Our home town is on the map. It is not a surprise to those that know the area. Following the rebuild of Urmston town centre in 2009/10 it has been fantastic to see the changes going on. There are new bars and restaurants, shops and with news of the food market on the way, it can only help Urmston further. The only thing we are missing now is a tram stop. In monetary terms, Urmston was beaten only by Chorlton – which could be due to the met as it increases your options of getting in to the city centre.
In looking at South Manchester house prices we have Burnage and Chorlton in the list. It is interesting that these are 2 places next door to Didsbury. It makes me wonder if people are looking at places around Didsbury due to the high house prices there. It is also interesting that these are 2 places with very good transport links in to Manchester with the train, met and buses serving both of these areas very well.
Eccles is another area that is doing very well in the current climate. With the met coming to Eccles, close proximity to the motorways for Liverpool, Warrington, Bolton and other parts of Manchester and the Trafford Centre just round the corner, it is not surprising that it is seeing an improvement in house prices.
I do also wonder whether it is befitting from the ripple effect of Urmston to some extent. Cheaper house prices than Urmston/Flixton and Davyhulme could be helping it out, but lets not detract, there is a lot going on in Eccles at the minute in terms of investment in roads, shops, transport and so on.
All in all, it is good reading for Manchester House prices on every side of the city centre are increasing, it is not limited to the old favourites of Didsbury and Altrincham. The increases are generally coming from investment but that investment is coming from various places whether it be council or private so hopefully this is a sign of things to come.
How Does House Price Increases Effect You?
Whilst higher house prices may mean bigger deposits in terms of the amount needed for a house purchase is a bigger burden for first time buyers, or the bank of mum and dad, for those already in their homes, increasing house prices does usually signal increased equity.
With increased equity in your home, moving mortgage becomes easier and cheaper, as the deemed risk to the lender (all things being equal) is now less and more and more lenders become available to you.
If your loan to valuation comes below the 90%, 85%, 80% and 75% milestones you can generally see worthwhile reductions to the interest rate on offer. This could help you save money of the bills, or if you kept the repayment the same, pay off your mortgage sooner.
More equity could also see you release some of it? Equity Release is something to consider if you need a lump sum for home improvements, debt consolidation or if you heading into retirement and are looking at whats called a life-time mortgage.
Having equity gives you options so if you would like to speak to a local Mortgage Broker in Manchester, please do get in touch. Whether you are from Manchester or looking to move here, we would love to have a chat and see if we can help.