“How
much would it cost to buy all the properties in Maidenhead?”
This fascinating question was posed by the 11-year-old son of
one of my Maidenhead 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 Maidenhead 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
2005.
In the last 11 years, since the autumn of 2005, the total value of
Maidenhead property has increased by 89% or £5.75 billion to a total of £12.21
billion. Interesting, when you consider the FTSE100 has only risen by 30.78%
and inflation (i.e. the UK Retail Price Index) rose by 37% during the same 11
years.
When I delved deeper into the numbers, the average price
currently being paid by Maidenhead households stands at £498,576.… but you know
me, I wasn’t going to stop there, so I split the property market down into
individual property types in Maidenhead; the average numbers come out like this
..
Maidenhead 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
|
£703,531
|
£432,824
|
£414,654
|
£275,714
|
... yet it got even more fascinating when I
multiplied the total number of each type of property by the average value. As
detached houses are so expensive, when you compare them with the much cheaper
terraced/town houses and apartments, you can quite clearly see how valuable
detached properties are in terms of total pound note value, when compared to
the value of the terraced/town houses and apartments.
Total Value of all
the Maidenhead Detached Properties
|
Total Value of all
the Maidenhead Semi-Detached Properties
|
Total Value of all
the Maidenhead Terraced/Town House Properties
|
Total Value of all
the Maidenhead Apartments
|
£5,945,540,481
|
£2,870,488,768
|
£1,785,500,124
|
£1,607,412,620
|
So, what does this all mean for Maidenhead? 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 Maidenhead remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.
Maidenhead 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 Maidenhead 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 Maidenhead has always, and will always, ride
out the storm.
