While house sales stagnated in 2019, rents showed a much stronger performance, according to the latest update from property agents Nicol & Co.
Managing director Matt Nicol said that that house sales In Worcestershire were 12% down in 2019 compared to the previous year.
The local markets of Droitwich Spa and Malvern, where Nicol & Co will soon be opening their third office, have both seen a reduction of 7%.
Droitwich and Malvern recorded similar average prices just over £250,000, but in Worcester, where 43% of the sales took place, the average sales price was 12% lower at £221,597.
On the rental front, he said, the picture was much brighter, with Worcester and Malvern achieving a similar average of £651 per calendar month, but Droitwich was the county’s star performer, 27% higher at £827 pcm.
“Rental growth of 3% has been seen in Worcester over the past 12 months, with a similar figure in Malvern, whereas on Droitwich, the figure is an impressive 13%,” said Mr Nicol.
Nationally, rents rose by 1.4% in the year to November, the highest rate of annual growth in two years, with price growth currently strongest across the South West and East Midlands.
Looking forward into 2020, Mr Nicol said he was optimistic.
“There is a lot of new housing in the pipeline, particularly from small to medium sized developers, much of which will come to the market in 2020.
“Thankfully, after the election result, we can put years of uncertainty behind us and get back on the front foot.”
He cited the thoughts of highly-respected behavioural economist Roger Martin-Fagg who said: “2020 will be a good year. The current growth in money supply will increase and an 80 seat majority will give confidence resulting in increased activity.”
He is predicting monthly house sales up by 10% to 110,000 by April, subject to the weather, and is predicting price increases to be fastest in London and the south east with average selling prices expected to rise by 5% across the country.
Matt Nicol said: “I believe we are looking at a vastly improved picture for 2020 with a pent up demand to move coming to the fore, and a wide range of quality new property, including those eligible for Help to Buy, coming to the market as the year progresses.”