£38.31bn – The total value of all Sheffield Property Market
“How much would it cost to buy all the properties in Sheffield?”
This fascinating question was posed by the 14-year-old son of one of my Sheffield landlords when they both popped into my offices before the Christmas break (doesn’t that seem an age away now!). I thought to myself, that over the Christmas break, I would sit down and calculate what the total value of all the properties in Sheffield are worth … and just for fun, work out how much they have gone up in value since his son was born back in the autumn of 2002.
In the last 14 years, since the autumn of 2002, the total value of Sheffield property has increased by 100% or £19.15 billion to a total of £38.31 billion. Interesting, when you consider the FTSE100 has only risen by 68.9% and inflation (i.e. the UK Retail Price Index) rose by 38.7% during the same 14 years.
When I delved deeper into the numbers, the average price currently being paid by Sheffield households stands at £174,563.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Sheffield; the average numbers come out like this ..
|Sheffield Property Market|
|Average Value of a Detached Property||Average Value of a Semi-Detached Property||Average Value of a Terraced/Town House Property||Average Value of an Apartment|
… yet it got even more fascinating when I multiplied the total number of each type of property by the average value. Even though detached houses are so expensive, when you compare them with the much cheaper semi-detached houses, you can quite clearly see detached properties are no match in terms of total pound note value of the semi-detached houses.
|Total Value of all the Sheffield Detached Properties||Total Value of all the Sheffield Semi-Detached Properties||Total Value of all the Sheffield Terraced/Town House Properties||Total Value of all the Sheffield Apartments|
So, what does this all mean for Sheffield? Well as we enter the unchartered waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Sheffield remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.
Sheffield house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth. Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Sheffield not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Sheffield has always, and will always, ride out the storm.
In the coming weeks, I will look in greater detail at my thoughts for the 2017 Sheffield Property Market. As always, all my articles can be found at the Sheffield Property Market Blog, https://sheffieldpropertyblog.com
As always, if you are an investor in the Sheffield property market and would like a second opinion on a property you have seen, then send the URL of the properties you have seen online over. Or if you would like to pop in and have a chat, then you can either email on firstname.lastname@example.org or call on 0114 201 4325. The kettle is always on and we will even pull out the posh biscuits!
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