The prime housing market in Cheshire is largely dependent on demand from wealth generated in the local economy. We believe the prime housing market will continue to benefit from an improvement in local buyer sentiment.
The government’s long term proposal for a ‘Northern Powerhouse’ is also helping to build confidence in the region and is likely to attract further investment to the North of England.
However, some buyers, particularly those looking to upsize, will be increasingly constrained by mortgage regulation and are likely to be wary of future interest rate rises.
This is expected to suppress house price growth over the next five years, particularly in the lower value markets where buyers are more reliant on mortgage finance and the realistic pricing of stock remains crucial.
There is also a slight threat to the top end of the market given that taxation of high value properties is high on the political agenda. Stamp duty has already increased for properties over £2 million and if there are any further changes, we risk a period of sobriety.
Overall, our outlook for prime Midlands and North remains positive, with average prices forecast to grow by 20.4% over five years assuming no further changes to the taxation of high value homes.
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