Morning, neighbours! It’s Emanuele and Michelle Vinci here. We were just chatting over a coffee near the park in Royton this morning, watching the world go by. It’s funny how a simple walk down Pit Lane or a drive past the shops in Shaw can tell you so much about what’s happening with our homes.
Did you know that the property market is a bit like a Sunday roast? Everyone has their favourite bit—some love the crispy roasties (the big detached houses), while others are all about the Yorkshire puds (the cozy terraces). But lately, the "chef" at the Bank of England has changed the recipe by keeping the base rate at 3.75%. This small change in the "ingredients" of borrowing money means that some people are picking different things for their plates than they might have a few years ago.
The £219,000 Leap: What’s on the Menu in OL2?
If you’re looking to move within OL2 right now, the gap between the different types of homes is quite something. To give you an idea of the ladder we’re all climbing:
- A Flat usually starts the journey at around £142,496.
- A Terraced House (like the lovely ones we see near George Street) steps up to £164,412.
- A Semi-Detached House jumps to £239,432.
- A Detached House (the big ones like those on Bennett Way) sits at the top at £361,715.
The difference between a terrace and a semi is about £75,000. That’s essentially the price of an extra bedroom, a driveway for the car, and a bit more breathing room between you and the neighbours!
The Tortoise and the Hare: A Surprising 7-Year Race
Here is a "did you know" moment that might knock your socks off. Most people think the biggest, most expensive houses grow the most in value. But in OL2, the little flats have been the star of the show!
If you bought a detached house 7 years ago, your home is worth about £43,300 more today. That sounds like a lot, right? But that’s a 13.6% increase. Meanwhile, if you bought a flat, your home is worth £27,854 more than it was. While the cash amount is smaller, that’s a whopping 24.3% growth!
Why is this happening? Well, because people’s wages are growing at 3.6%—which is good—but things in the shops (inflation) are still rising at 3.4%. Because life is a bit more expensive, many buyers are looking for those "entry-level" homes, which pushes the demand—and the prices—up much faster for smaller properties.
The Big Picture: Why Your Home Value is Moving
Right now, across the whole country, about 62,600 people are getting their mortgages approved every month. That’s a lot of moving vans! Even though borrowing money is more expensive than it used to be, people in OL2 are still very keen to move.
Because the Bank of England isn’t dropping rates quickly, first-time buyers are being a bit more careful. They are often choosing a nice flat or a terrace in Shaw or Royton rather than stretching for that big semi-detached right away. This is keeping the market "balanced"—meaning there is a healthy mix of homes for sale and people wanting to buy them.
What Should You Do?
- If you own a Flat: You are sitting on the fastest-growing type of property in our area over the last 7 years. It’s a fantastic time to consider if you want to use that extra value to step up to a house.
- If you own a Detached Home: While growth has been steadier, your home is still the "gold standard." With prices like those we’ve seen recently on Rochdale Road (getting up toward £680,000 for some high-end semis!), there is still plenty of appetite for space.
- If you’re Buying: The "gap" between a terrace and a semi is quite wide right now. If you can find a terrace with a bit of extra space or a loft conversion, you might be getting the best "bang for your buck."
Looking ahead to the next 12 months, we think the "middle of the market" (those sturdy terraces and semis) will stay the busiest. As long as people keep getting pay rises and inflation stays calm, the OL2 market is looking like a very safe place to be.
If you’re wondering what your specific "slice of the roast" is worth today, just give us a shout! We’re always happy to help a neighbour.