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Mercedes appoint Farol; Massey Ferguson awarded; Arb Show; RVT team with college; Husqvarna brand ambassadors
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JIM GREEN
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IT'S ALL RELATED
Feeling the knock on effects
by Service Dealer Editor, Steve Gibbs


 
Steve Gibbs
Our job as a niche trade publication is of course to concentrate on our industry - loosely termed the Outdoor Power Equipment trade (or the Land Based Industry to be even less specific!).

However the ups and downs of our sector of course do not simply exist in a bubble of our own making. The weather is often cited by you, our dealer readers, as the biggest influencing factor on a good or bad season.

But clearly wider economic pressures also impact on sales. And one of these pressures has to be house prices.

Some interesting research by estate agents, eMoov.co.uk cropped up recently. They looked at the future of the UK property market, mapping what they believe the average house price across England, Scotland and Wales could look like by 2030.

Their research looked at the increase in UK property values between 2000 and 2015 and found property prices had increased by 84% during this time. eMoov then applied the same increase across each area of England, Scotland and Wales to project how much the average property could set buyers back in 15 years’ time.

According to their findings by 2030, the average house price across the whole of the UK could be as much as £375,502, almost double the current average house price.

As you would expect London took the top spot in terms of the highest value, with the 'average house' in the capital apparently looking to cost a cool £1m in 2030!

England could be as much as £457,433, close to the current asking price in the capital. Based on the current market, the only areas of England that will offer an average house price under £280,000 in just 15 years’ time are Merseyside (£275,074), East Riding of Yorkshire (£277,411) and Durham (£279,985).

The research also postulated that the current trend of London homeowners moving to the surrounding areas may soon become a national trend of English homeowners looking to Wales. In 2030 the average house price in Wales will hit £307,712, which is of course expensive but £150,000 cheaper than England.

And it's a similar story north of the border, as the research projected that the average house price for Scotland in 2030 would be the cheapest of the three at £297,222.

Property Director for eMoov.co.uk, Adam Cast, said, “The natural growth of property prices over the last 15 years percentage wise is a great reflection on what level prices could reach in the next 15 years. When we speak to homeowners in the 70s and 80s about how much their first house cost back then and how much they were earning, it highlights how much prices have increased, but there is a disparity between this growth and the money we are earning.

"Mortgage regulations have had both negative and positive attributes along the way, which will only get stricter as time goes on. However, wages will need to increase in line with this growth, as they have failed to keep up over the last 15 years, making homeownership all the more difficult."

And it's this idea of wages increasing in line with house prices which surely must be vital for related sectors such as ours?

We don't want to see gardens across the land being concreted over because no one has any money left for their upkeep!

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