York and Darlington

York and Darlington
 
Continued Recovery

20 May 2016, by Sophie Chick

York and Darlington’s housing markets will benefit from an improvement in buyer sentiment

 

The prime housing markets of York, Darlington and the surrounding villages and countryside are largely dependent on wealth generated in the local economy. As economic recovery spreads from London and the south east to the north, we believe that the prime housing market will benefit from a continuing improvement in buyer sentiment.

We expect prime urban markets to continue outperforming their neighbouring villages and rural areas as the trend for urban living remains popular. However, villages and rural countryside now represent good value in comparison to larger towns and this will make them a very attractive prospect to some buyers. We have already seen a significant increase in activity this year in villages to the north of York.

The recent stamp duty changes, imposing a 3% surcharge on the purchase of ‘additional homes’, poses a slight threat to the investment and second home markets due to the increased tax burden. These markets will therefore remain price sensitive, especially for high value properties that have not had the historic stamp duty increases priced into the market.

Looking forward, we forecast that prime values across the north of England will grow by an average of 18.2% over the five years to 2020, as the local economies strengthen and buyers become more aware of the comparative value this region offers, particularly regarding higher value properties.

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