STOCKPORT HOUSING STRATEGY Housing Market Quarterly 1 Bulletin Issue 41 Nov 2017 Housing Market Overview UK House prices grew by 5.0% in the year to October 2017. In terms of housing demand the Royal Institution of Chartered Surveyors (RICS) residential market survey for September 2017 reported that new buyer enquiries fell again during September and represents the weakest figure since July 2016. Demand for housing was more resilient in the new-build sector and the Government Help to Buy scheme was regarded as crucial to sustaining demand among first-time buyers. The latest data from the Land Registry show that the annual increase in Stockport was 6.7%, which is higher than the UK average of 5.0%. The number of transactions remains relatively low at around 400 per month. This is most likely attributed to rising inflation leading to lower consumer confidence coupled with lower stock levels on estate agent s books, which is continuing to weigh on the level of activity. The UK's key inflation rate remained steady at a five-and-a-half-year high of 3% in October 2017. The Consumer Prices Index (CPI) had been expected to rise, with the Bank of England forecasting it would peak at 3.2% this autumn and is now a long way off the Bank of England s target of 2%. Given the concerns over inflation, the Bank of England has raised interest rates for the first time in 10 years at the start on November 2017 from 0.25% to 0.5%. However, most analysts agree that it will take some time for inflation to fall back nearer the 2% target. The effect of the rate rise and high inflation means cash-strapped consumers will continue to feel the pinch as wages lag price rises. Homeowners on variable rate mortgages in particular will be feeling the biggest squeeze having to contend with the prices of everyday goods and services going up, and dealing with rising mortgage repayments. Stockport Council is continuing to support and promote an approach to development which prioritises brownfield land. This is through its statutory planning framework and processes and through enabling delivery where required. This proactive approach of working with owners, developers, partners and funders to bring forward brownfield land for development is known as the Brownfield First approach and is tied closely to the Councils wider regeneration ambitions. Support ranges from advice and guidance to full intervention where the Council may need to acquire land to ensure delivery. A particular focus is Stockport town centre. The Council s vision is of the town centre as an attractive, thriving and sustainable place to live, work, invest and visit. The long term strategy includes developing the town centre residential market, creating quality new homes with a range of types and tenures, in order to increase and diversify the town centre resident population and in turn support the wider retail, leisure, business and community offer in the town centre. Stockport Homes and partner Registered Providers are working on schedule in delivering the AHP 2015-2018 programme to build in excess of 400 houses. Countryside Properties are on site at Brinnington to build 275 new houses as part of a wider regeneration strategy for the area which includes a sports centre being built by Willmott Dixon. The Covent Garden flats have now been cleared out, with utility disconnections currently underway. This work is in preparation for the demolition of the flats and full redevelopment of the site by Your Housing Group to create 74 new housing units which will commence in January 2018. The Council is also proactively working with landowners and developers in bringing a number of large sites forward for development around the Borough The number of homelessness applications received and accepted as full duty cases by the local authority in the last quarter were 94 and 41 respectively. The number of full duty cases saw a decrease of over 30% from the previous quarter. The Homelessness Reduction Act 2017 will come into effect in April 2018 and will place a requirement upon local authorities to intervene at an earlier stage where people are threatened with losing their home. There is also a requirement to provide a more structured and on-going support to find and retain accommodation. Officers in Strategic Housing are in close liaison with Stockport Homes to identify gaps in service and to ensure that staff are adequately trained and have the knowledge and tools to enact the new bill.
Housing Market Statistics Source : HM Land Registry Oct 2017 - NB Sales volume data for the two most recent months are not used by HMLR as comparisons due to the lag in the registration of sold properties Actual average sale prices by postcode sector for the Quarter Jul to Sept 2017 Detached Semi Terraced Flats/maisonette Average No of Average No of Average No of Average No of Price Sales Price Sales Price Sales Price Sales SK1 0 0 165,417 12 132,154 27 81,860 5 SK2 305,831 14 226,372 63 206,666 21 108,833 6 SK3 245,705 7 185,596 46 141,156 32 140,800 5 SK4 453,472 9 336,623 52 238,436 21 173,177 22 SK5 249,950 1 147,317 33 130,166 41 144,000 3 SK6 379,901 36 229,915 68 188,442 36 115,894 8 SK7 565,201 41 284,782 70 196,925 24 199,650 10 SK8 377,208 51 269,107 82 211,640 26 147,578 25 Total Sales 159 426 228 84 Source : HM Land Registry Oct 2017 Key: SK1: Town Centre/Hillgate/Portwood SK2: Davenport/Heaviley/Great Moor/Stepping Hill/Offerton SK3: Shaw Heath/Adswood/Cheadle Heath SK4: Heaton Moor/Heaton Mersey SK5: Heaton Chapel/Reddish/Brinnington SK6: Bredbury/Woodley/Romiley/Marple SK7 : Bramhall/Woodford/Hazel Grove SK8: Gatley/Heald Green/Cheadle Hulme 2
Source: HM Land Registry Nov 2017 Source: HM Land Registry Nov 2017 3
Mortgage Repossession Statistics Quarterly Percentage increase/decrease in the number of Repossession orders made. Source: HM Ministry of Justice Quarter 2 (2017) Repossession Orders Made in Stockport Number made in the Quarter Quarterly change (%) Quarter 2-2017 10 0 Quarter 1-2017 10 25 Quarter 4-2016 8 50 Quarter 3-2016 4-50 Source: HM Ministry of Justice Quarter 2 (2017) Rented Housing Market Average rent levels as at May 2017 Housing Associations 4 Stockport Homes (ALMO) Private Sector (May 2017) Flats 1/2 beds 81.70 68.28 139.61 Terraced Houses 93.60 82.29 155.22 Semi-Detached 111.60 92.39 186.08 Detached n/a n/a 264.37 Source: Stockport Housing Partnership/Stockport Homes Ltd / Private Lettings Agencies/Rightmove Website
Source: Rightmove website Homelessness Statistics Quarterly Change (Apr 17 Jun 17) Jul 17 Sep 17 Number % Homelessness Presentations 94 110-14.5 Homelessness Presentations owed full duty 41 61-32.8 Source: Stockport Homes Oct 2017 5
Key Economic Indicators as at 12 th Nov 2017 Current Bank of England Base Rate: 0.50 % Current Inflation Rate (CPI): 3.0% (RPI: 4.0%) Government Target Inflation Rate (CPI): 2.00 % Empty properties in Stockport as at 30 th September 2017 All empty properties: 3,055 (2.40%) (Sep 2016: 3,070) Empty for more than 12 months: 871 (0.68%) (Sep 2016: 926) 3 Month LIBOR as at 18 th May2017: 0.528% (Source: www.thisismoney.co.uk) Source: Stockport Council Contact Us : Tel: 0161 474 4390 Fax: 0161 474 4337 E-mail: housing.strategy@stockport.gov.uk Housing Strategy Team Place Directorate - Strategic Housing Stockport Metropolitan Borough Council Stopford House Piccadilly Stockport SK1 3XE 6