House prices are affected by two key factors, supply and demand. Demand in Tamworth has far outstripped the supply for a number of years. The population in our town has been growing, largely thanks to the amount of jobs which have been made available. Tamworth has benefited from its geography, being located in the heart of the county with great transport links. We have a great transport network which allows us to travel in all directions with relative ease, thanks to the M42, A38 and A5 road links and the crossing of two major railway lines at Tamworth train station.
The majority of employees do not want to live too far from work due to the increase in commuting expenses. Therefore, the demand has been there for new homes. However, with the amount of new homes being built, demand will fall. If the supply of new homes begins to exceed demand, this could then have an effect on property values as those looking to buy will have a choice on what property they view, make offers on and subsequently buy.
Over the last 12 months we have been selling properties at full asking price due to demand. Although there are a lot of new homes being built, they are often marketed at a premium price. This is not surprising due to the outlay that the builders make on building them, plus, they do come with their 10 year new builder's 'NHBC' guarantee. However, many purchasers are put off new builds due to the size of the rooms.
Those with older homes should not be unduly concerned by the amount of new homes on the potential demand for theirs. Older homes tend to have larger rooms with taller ceilings, larger gardens and larger driveways. In terms of the impact of these new homes on prices across Tamworth, we will have to wait and see if demand continues to rise at the same pace as supply.
If you are interested in a free no obligation valuation on your property, please feel free to call Martin & Co Tamworth Estate & Letting Agents. Or if you are passing, please feel free to drop in and see us at our office on Lower Gungate.