Housing Stampede in the Northwest
The Northwest has seen the numbers of available properties to buy at record lows with inventory now at a fraction of pre-pandemic levels. This has resulted in listed properties receiving multiple offers, creating a housing stampede.
It was reported in the Liverpool Echo that, “Dawn Quinn was delighted when she finally moved into her dream Wirral home after a battle which saw her take on 28 prospective buyers and pay nearly £20,000 over the asking price”.
Dawn and her partner had to sell two homes to get a big enough deposit together before securing their new home in Egremont Promenade in Wallasey. Dawn said: “28 couples went to see it before we did. We had to sell two houses to get a large deposit together and we offered £19,000 over the original asking price.” Dawn, and her partner Stephen, both 49, said the estate agent told her that they had turned down a many offers for the property, for which the couple paid more than £350,000.
Sarah Vernon 36, from Manchester, was left frustrated with her attempts to buy a home. She started looking for a place in the Wirral, preferably New Brighton or Wallasey Village. Sarah had managed to raise the deposit to buy her first home, but then the pandemic hit and her plans were put on hold. Sarah explained that it is now “impossible” to get a place in the Wallasey area if you live somewhere else, as properties are bought up as soon as they go online. In an effort to get a property, Sarah has moved to Wallasey Village and started renting with friends, but as yet that has not been enough to get her a place of her own. Sarah said: “house prices have jumped and I can no longer afford the same sort of place.”
There are a number of Emerging hotspots in the Greater Manchester Area with some properties having between 17 to 24 offers put in on the same day. Properties in Oldham have risen by 12% in the last twelve months. Due to a high number of people enquiring about homes in these areas, many estate agents have had to arrange open days for multiple people to view the homes at once. Last month, three separate properties had between 17 to 24 offers put in the same day with offers submitted at premiums to the asking price. This is a classic sign of a housing stampede.
In OL8 which includes the areas of Bardsley, Fitton Hill, Hollins, Hathershaw, Limeside and Oldham homes have sold for an average of £133,700 over the last year, which is up by 12% on the previous year. The most popular homes to buy here are terraced houses, according to Rightmove. Robert Herring, sales director for Esper Wealth explains: “One of the main drivers of OL8 is the low comparatively low prices of the area compared to surrounding areas. This affordability coupled with good local amenities is proving to be a draw to families.” We reported in March that Average UK house price exceeds £260,000 for first time
One solution for avoiding this housing stampede is to buy property direct from the developer. This method prevents having to pay over the asking price. An even better option, if you are an investor, is to buy off-plan. Typically when you use this method you can secure a property below market price, at a price agreed today. Check out the article (29) Off-plan Property -The Good The Bad And The Ugly | LinkedIn to gain a better insight to off-plan property. Our section The Investment Process will help you to understand how buying property off-plan works. You can see our latest investment properties by visiting our developments page.