House prices in the UK’s prime markets are continuing to rise slowly and steadily, recording growth of 3.7% in the first nine months of 2014. While price growth in Cheshire was more subdued at 3.1%, this was double the growth seen across the whole of 2013. This follows an important turning point in the market that occurred in the autumn of 2013 when annual price growth turned positive for the first time in three years.

Overall the prime Cheshire housing market remains -14.0% below its 2007 peak, which is in line with the average for prime property across the Midlands and the North of England. However, there has been a huge variation based on location and price point, with some properties achieving at or above their 2007 values due to a lack of supply.

Click image below to enlarge

Local demand

The recent upturn in house prices has for the most part been driven by local demand. Buyers who are already living in Cheshire accounted for 50% of purchasers over the last 18 months, with two thirds coming from within the North West of England.

Cheshire also attracts buyers from London and the South East as well as international buyers and expats returning to the area. The family market has been particularly active with just under three quarters of purchasers moving to secure a bigger property.

The past few years have seen the number of buyers from Greater Manchester increase significantly, rising from 13% of purchasers in 2011 to 21% in H1 2014. These house hunters are increasingly looking to move to commutable locations in suburbs. Places like Alderley Edge and Hale are seeing more interest than more rural areas that were in vogue prior to 2007.

Urban vs Rural

Across the county, properties in prime urban locations have seen the strongest house price growth with average values increasing by 6.5% over the past year leaving values just -6.6% below their 2007 peak. Locations such as Chester and Wilmslow are leading the recovery.

Conversely, properties in rural locations have seen greater falls since 2007 and are still -22.4% below their peak, yet values do now appear to have bottomed out, increasing by 0.4% over the past year.

Regardless of location, good schools play a key part in drawing buyers to an area. There is a selection of high profile grammar and private schools across Cheshire to choose from, with independent schools proving particularly popular with expats returning to the UK.

Employment market

The employment market in Cheshire is diverse with many homeowners commuting to Manchester, Liverpool or Chester. While the economic recovery to date has not been as strong as the South of England, the economy in the North West is forecast to increase by 14.2% over the next five years and the number of employees will increase by 4.2% over the same period.

Manchester, in particular, is forecast to see strong growth in employment, increasing by 7.4% by 2019. This is driven by growth in the professional, scientific and tech sector, which is forecast to employ 18.6% more people and become the second largest employment sector (after human health and social work).

The financial sector, which has traditionally played an important part in the prime housing markets, is forecast to increase by 1% over the next five years in the North West. Locations such as Chester Business Park are benefitting from new financial companies moving to the area.

Cheshire's high value wards

Cheshire contains some of the highest value housing markets outside the South of England. Three out of the four highest value wards in the Midlands, North and Wales are in the Local Authority of Cheshire East with Prestbury being the most expensive, commanding an average sale price of nearly £800k.

Although, average values are lower in the Local Authority of Cheshire West & Chester, it also includes a number of high value markets such as Tattenhall (average sale price £322,447) and Tarporley (average sale price £300,513).

Click image below to enlarge

Taken from:
Market in Minutes: Prime Cheshire - Q4 2014