Shepperton Property Owners Reap £4,925 Yearly Gains Since 2001
Shepperton Property Owners have gained an average £4,925 per year in the value of their property since 2001. If you are a Shepperton homeowner or landlord, this article tells you how much each type of property has gone up in value and what this means to the property market.
As we are now nicely into 2024, it's certain the Shepperton housing market over the last 18 months has been a little more restrained than 2020, 2021 and early 2022, and I believe that the ‘steady as she goes’ outlook will continue into the rest of 2024 and beyond.
As property ownership is a medium to long-term investment, it is important to see what has happened to Shepperton house prices.
Since the start of the Millennium (Jan 2001), the average Shepperton homeowner has seen their property’s value rise by an average of 67%.
This is important as house prices are a national obsession and tied into the health of the UK economy as a whole. Most of that gain has come from the overall growth in Shepperton property values, while some of it will have been enhanced by extending, modernising or developing their Shepperton home.
Taking a look at the different types of property in Shepperton and the profit made by each type, it makes interesting reading:
· Overall Average For All Homes in Shepperton. The average price of all homes in Shepperton in 2001 was £172,476. Now it's 2024, it has risen to £285,761. This is a total profit of £113,285 (which is £4,925 profit per year per home or an annual growth of 2.9% per year).
· Apartments in Shepperton. The average price of an apartment in Shepperton in 2001 was £94,582. Now it's 2024, it has risen to £347,728. This is a total profit of £253,146 (which is £11,006 profit per year per home or an annual growth of 11.7% per year).
· Terraced/Town Houses in Shepperton. The average price of a terraced/town house in Shepperton in 2001 was £161,001. Now it's 2024, it has risen to £600,390. This is a total profit of £439,389 (which is £19,104 profit per year per home or an annual growth of 11.9% per year).
· Semi-Detached Homes in Shepperton. The average price of a semi-detached home in Shepperton in 2001 was £168,859. Now it's 2024, it has risen to £285,213. This is a total profit of £116,354 (which is £5,059 profit per year per home or an annual growth of 3.0% per year).
· Detached Homes in Shepperton. The average price of a detached home in Shepperton in 2001 was £245,379. Now it's 2024, it has risen to £600,129. This is a total profit of £354,750 (which is £15,424 profit per year per home or an annual growth of 6.3% per year).
However, we can’t forget there has been 79% inflation over those 23 years, which eats into the ‘real’ value (or true spending power of that profit) … so if we take into account inflation since 2001, the true ‘spending power’ of that profit has been lower.
• Overall Average For All Homes in Shepperton. The total 'real profit' (i.e., after inflation has been removed) for the average Shepperton home is £63,041 for the last 23 years. This equates to £2,741 'real' profit per annum.
• Shepperton Apartments. The total 'real profit' (i.e., after inflation has been removed) for the average Shepperton apartment is £140,871 for the last 23 years. This equates to £6,125 'real' profit per annum.
• Shepperton Terraced/Town Houses. The total 'real profit' (i.e., after inflation has been removed) for the average Shepperton terraced/town house is £244,513 for the last 23 years. This equates to £10,631 'real' profit per annum.
• Shepperton Semi-Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Shepperton semi-detached home is £64,749 for the last 23 years. This equates to £2,815 'real' profit per annum.
• Shepperton Detached Homes. The total 'real profit' (i.e., after inflation has been removed) for the average Shepperton detached home is £197,412 for the last 23 years. This equates to £8,583 'real' profit per annum.
Thus, the annual profit for an average Shepperton home,
adjusted for inflation, stands at £2,741.
I wanted to illustrate that despite the 2008/09 Credit Crunch property market crash, which saw Shepperton property values plummet by 15% to 20% over 18 months, homeowners in Shepperton have still fared better over the long term than those renting.
Looking ahead, a common question I get asked is about the future trajectory of the Shepperton property market.
The primary influence on maintaining house price growth in Shepperton over the medium to long term will be the construction of new homes locally and nationally. Although we have yet to get the figures for 2023, government sources indicate that the number of new households is expected to be between 210,000 and 220,000. Considering the annual need is for 300,000 new households to meet demands arising from factors such as immigration, increased life expectancy, higher divorce rates, and later cohabitation, it’s clear that demand will continue to outstrip supply unless the government heavily invests in building council houses.
This can only be good news for Shepperton homeowners.
What about Shepperton landlords, though?
Even though the number of landlords liquidating their property portfolios has increased in the last couple of years and the number of landlords buying is lower than in the 2000s and 2010s, there is still net growth in the size of the private rented sector each year. This is all despite facing higher taxes. The simple fact is many Shepperton landlords remain keen on expanding their portfolios in the long term.
The younger generation in Shepperton views renting as a choice that offers flexibility and alternatives that homeownership does not provide. This means that demand for rentals will keep growing, allowing landlords to enjoy rising rents and capital appreciation. However, Shepperton buy-to-let landlords must adopt more thoughtful strategies to maintain profitable returns from their investments.
As a Shepperton buy-to-let landlord, the question for you is how to ensure this growth continues.
Since the 1990s, generating profits from buy-to-let property investments was straightforward. Moving forward, with changes in the tax laws and the balance of power, achieving similar returns will be more effortful. Over the past decade, I've observed the evolution of agents from mere rent collectors to strategic portfolio managers. I, along with a select few agents in Shepperton, am adept at providing comprehensive, strategic portfolio leadership. This service offers a structured overview of your investment goals across short, medium and long-term horizons, focusing on your expected returns, yields and capital growth. If you seek such advice, feel free to contact your current agent or me directly at no cost or obligation.