Property sales in Cornwall have taken a nosedive, hitting their lowest point since the 2008 financial crash. But don’t panic just yet, there’s good news too!
A new study by Bird & Co, using data from the Office for National Statistics (ONS), has revealed that Cornwall’s housing market is experiencing a major slowdown. The study looked at house prices and income data from the past 20 years (2003-2023) to get a clear picture of what’s been happening.
Good News – Cornwall is Affordable
The good news is that Cornwall has one of the smallest gaps between house price increases and wage growth in the UK. This means that people living in Cornwall are more likely to be able to afford a house without having to stretch their finances to breaking point.
What Happened During the Pandemic?
The study found that the biggest difference between house prices and wages occurred in 2020/21. This was due to a perfect storm of events:
- Job losses during the pandemic: This meant people had less money to buy houses.
- Increased demand for houses: With more people working from home, many wanted to relocate to Cornwall, pushing up demand and prices.
- Stamp Duty Holiday: This government scheme, introduced in July 2020, meant buyers paid less tax, further increasing demand and prices.
Where Can I Afford to Live in the UK?
To see where house prices were most affordable across the UK, Bird & Co compared changes in house prices and income from 2003 to 2023.
Areas where wages have kept pace with house prices (meaning they are more affordable):
- Cornwall
- Ribble Valley
- East Devon
- North Kesteven
- Wyre Forest
- Newcastle upon Tyne
- Mid Devon
- South Staffordshire
- West Lancashire
- Blackpool
So, Why Are Sales Falling?
Daniel Chard, a partner at Bird & Co, says that although Cornwall is one of the most affordable places to buy in the UK, other factors are stopping people from taking the plunge. He suggests these could be:
- Not enough houses: There simply may not be enough homes available to buy in Cornwall.
- House prices going up and down: This uncertainty makes people nervous about buying.
- High-interest rates: Mortgages are more expensive, meaning monthly payments are higher.
- Difficulty getting a mortgage: Banks are being stricter about who they lend to.
- Worries about the future: People are concerned about their jobs and rising living costs.
What Should I Do If I Want to Buy a House in Cornwall?
Chard advises anyone thinking of buying a home to think carefully about their finances and the long-term picture. Don’t just jump into a purchase because you think prices might rise.
Consider these factors:
- Job security: Is your job safe?
- Savings: Do you have enough for a deposit?
- Mortgage affordability: Can you afford the monthly payments, even if interest rates go up?
- Future plans: Do you plan to have children, change jobs, or move again in the next few years?
Buying a house is a big decision. Make sure you’re doing it for the right reasons and that it’s the right time for you.