The financial crisis, scarily now a decade ago, saw one of the most dramatic impacts on property prices in history. Today I take a look at the impact caused by the credit crunch to terraced properties in Tameside, and whether or not you as a landlord with a property or properties in Tameside, have managed to regain or even surpass the original value through 10 years worth of data.
In January 2007, the average price of a terraced property in Tameside was estimated at £116,240; proceeding a steady growth continuing in a healthy manner up from the start of the following year.
It soon became apparent in the early months of 2008 however that the waters ahead weren’t going to be as kind, with property prices crashing to an all time low courtesy of the ongoing financial crisis.
Property prices plummeted for three years, with some areas in Tameside seeing a decrease of up to 26% on terraced houses. Hundreds of thousands dipped into tens of thousands, with some properties struggling to recover their asking prices for up to four years.
Prior to the effects of the credit crunch, Droylsden featured the lowest average price of terraced properties in the borough at around £105,284. This rose to £108,658 at the start of 2008, dropping to a lowest point of £90,813 during the crisis in January 2011.
Various investment factors throughout the following years including the introduction of the Metrolink into the town in 2013 meant that by the end of 2017, Droylsden had escalated its position from the lowest average price of terraced properties in the borough to the third highest, only behind Longdendale and Mossley. The new average price of £124,655 leads to a just shy of £20,000 gain for landlords who may have purchased a property in the area prior to the financial crisis.
Other areas such as Hyde and Dukinfield are yet to witness a full recovery on terraced property prices, however both areas currently feature significant property investment which shows no sign of slowing down, particularly in Hyde with both the Clarendon and Godley Green proposals.
Audenshaw, Ashton-Under-Lyne, Mossley and Stalybridge still have a variety of four figure sums to claw back in order to reach their pre-crash values, however are still showing healthy gains from their lowest prices during the crash:
Prince Increase/Decrease Percentage Comparison: 2008 – 2018 / Lowest crash price – 2018
|Town name||2008 - 2018 price percentage change||Lowest crash price - 2018 percentage change|
Whilst the data shows that there is still a climb needed in order for many areas to reach their pre-crash terraced property asking prices, it shows that knowing where the property cycle currently resides can lead to large capital gains.
The majority of lowest prices during the crash occurred in 2011 and 2013, and any terraced properties bought in this period have all seen an increase of well over 15%. The property cycle is an ever-rotating wheel, with prices fluctuating all the time. Being able to comprehend, read and even plan ahead for these changes yields the best results for smart and fast thinking landlords.
(Sources: Home, Office for National Statistics)