The New Kidlington Railway Station: What Is It Doing to The Property Market?
At Alistair Redhouse we are forever being asked “what is the impact of the impending new station on house prices and market activity?”
So I thought, for our first blog post this would be a particularly interesting subject to address:
Although the station has been on the table and discussed amongst local councillors and local business leaders for many years, it only reached the public consciousness towards the end of 2013. With BBC coverage on radio and TV in spring 2014 (featuring yours truly) and a feature in the Sunday Times identifying Kidlington as a place to invest, the wider interest has grown significantly.
We have seen a dramatic rise in property values in Kidlington over the last 12 months. In fact we sold a three bedroom semi detached house in August in 2013 for £245,000 we then sold the same house with some minor cosmetic improvements for £315,000 in April 2014. That’s 28% growth in 8 months.
That is an extreme case, but what is causing that growth?
Since the publicity we have seen a 27% increase in applicant registration most notably from buy to let investment buyers which are up a staggering 61%. This has been coupled with a drought of new stock coming to the market as would be sellers delay their sale until the station is here, in the hopes of achieving a better price.
This is, in effect, creating a self fulfilling prophesy and prices have gone up.
The station is due to be open between March and May 2015. It is impossible to say for certain what will happen in the local market as there is no end of variables, however we are expecting prices to grow at a much slower pace in 2015 as all those sellers who have been putting it off flood back to the market. That said, once the station is actually on the map we will expect to see a second wave of London commuter, owner occupiers, registering to buy. We’ll keep you posted.
As Kidlington is landlocked by greenbelt land there is only a limited amount of space for new properties to be built and only a handful of sites in planning. With an increased demand to live here the advent of the station will put further pressure on the housing stock, creating long term growth in local values. Great news if you are already on the housing market, not so good if you are saving to buy for the first time.