Flitwick and Ampthill Property Market – What is really happening?

Flitwick and Ampthill Property Market – What is really happening?

I had an interesting conversation with a local Ampthill accountant the other day. He is quite an observant chap (I know this because I have known him for a few years .. but I suppose you have to be to be an accountant!). Anyway, he mentioned a few things he had noticed recently in the local property market, that both Ampthill and Flitwick property prices had gone up in the last few years but nowhere near the growth levels that were being achieved in central London, and secondly, that he thought the number of for sale boards in Ampthill and Flitwick (and more importantly ones with sold slips on them) had increased over the last couple of years.

The rate of house price inflation in Ampthill and Flitwick continues to slightly slow with growth of 10.6% in the 12 months to February compared to 11.5% just under six months ago, according to the latest Land Registry data. However, there is considerable local variation with house price growth ranging from 9.8% in Bedford  to 14% in Hertfordshire over the last 12 months.

Whilst Ampthill and Flitwick hasn’t seen the 20%+ per year in house price growth of London over the last couple of years, Flitwick and Ampthill has seen base line demand for housing grow, which suggests there is substance to the recent pick-up in house price growth in the two towns. Since the Second World War in the UK, when the number of properties sold has grown, property values grew soon after. Interestingly, in the last twelve months, 201 properties in Flitwick and 175 properties in Ampthill have sold. In the twelve months before that, 224 properties sold in Flitwick and 184 in Ampthill. Interesting don’t you think?

When you compare Flitwick and Ampthill with London, you could be looking at two different countries. In London, its mid/late teens house price to earnings ratios are impacting demand (ie the average property value is often 15 or 17 times the average wage in London .. in fact in Knightsbridge the ratio can be 30 to 1).  However, the number of people wanting to sell has dropped considerably, meaning that falling sales volumes combined with a general slowdown in activity in the run up to the General Election are resulting in lower mortgage approvals for home purchase.

Transactions are a great indicator for house prices. The acceleration in house price growth in London in the last two years was preceded by three years of rising transactions. A similar pattern is being registered in the Ampthill and Flitwick area, as pent up demand returns to the market supported by low mortgage rates and an improving economic outlook.

But before you get the Champagne out, while the uplift in activity is welcome news, the number of Ampthill and Flitwick property sales in 2014 are still 10.7% lower than the level seen in 2007 and property values are 1.8% above the 2007 levels. The ongoing housing recovery is far from broad based and remains focused on middle to higher value areas within Ampthill and Flitwick where households have equity and find it easier to access mortgage finance. If you want to know more about the Ampthill and Flitwick Property Market, please subscribe to this blog for any future stories that may interest you.

If you’re a new or experienced investor and are considering buying in the local area then please feel free to get in touch with me if you’d like a chat. You can reach me on 01525 838848 or email graham@1st-house-lettings.co.uk and I’ll get back to you personally. Our office is in The Rufus Centre, Flitwick.