If you have been wondering if house prices are rising in Southampton, it is the perfect time to ask. With the housing market in the middle of a major recovery and with rates hitting fresh records across the UK, now is an appropriate time to start asking yourself this question about your Southampton property.
Notably, there are some things that we can predict with some certainty. One of the most helpful ways of predicting the future is looking at how similar areas have been performing in the past.
House prices are rising in Southampton. The fact is that demand is growing while supply is holding steady, so the property market has been on a roll. The truth is that there are numerous reasons for the current rise in house prices, but some of the most commonly cited ones are:
Southampton is a thriving city and has a very good economy. It is an attractive place to live and work, with many leisure activities.
The Southampton economy has been growing steadily, with unemployment low and employment levels high. The area has a diverse mix of businesses, with many new firms opening their doors in recent years.
There are also many opportunities for young people looking for work experience or apprenticeships and jobs in manufacturing or distribution.
The city has developed links with other cities worldwide through its university, attracting students from around the country and overseas.
These universities have made Southampton one of the most popular places to live in England, along with London and Brighton. You can have an edge if you involve Southampton conveyancing solicitor services to get the right deal.
Good Job Market
With a high demand for skilled workers, Southampton has become a popular place to live and work.
The city has an excellent reputation for its education hubs, giving graduates access to high-quality jobs within many businesses. Such makes it more likely that people will stay in Southampton after graduation.
The city’s good job market also contributes to its popularity as a place to live. The city’s unemployment rate is just 4%, and it has one of the country’s lowest levels of teenage unemployment.
Such means there is plenty of opportunity for graduates who want to move into employment or start their own business.
The presence of so many companies also means many opportunities for young people who want to start their own businesses. More than 1,000 business incubators across Hampshire support budding entrepreneurs so they can grow their firms as quickly as possible.
The Southampton property market is booming at the moment. The city has a population of nearly 200,000, and it is growing by about 2,000 people per year.
The increase in population has led to higher demand for housing, which has contributed to a rise in house prices across Southampton. Between 2015 and 2016 alone, the average price of property rose by 9%.
In addition to this increase in demand, Southampton also benefits from being close to London and its major airports. This proximity makes it easier for people working in London to commute, reducing their need for accommodation outside the city center.
High Cost of Living
In Southampton, the high cost of living is a major factor in the house price growth. Many people here earn good salaries and can afford to buy homes. However, the average house price in Southampton has risen from £46,700 in 2018 to £50,800 in 2021.
The cost of living is higher than in other places in the UK because Southampton is more expensive than other areas. The cost of living index is based on research into how much it costs to rent or buy various goods and services in different cities around England.
The Southampton average salary is also high compared with other cities. Beyond that, this means that people who live here can afford to pay more for houses that are still affordable compared with those in other areas.
Southampton has seen significant growth in the last decade. That is because the economy has improved much over what it was before. People are being drawn in by this city for all the lucrative opportunities available to them.
Still, this does mean that the city’s population is on the rise, and so is the demand for residential property. Therefore, house prices are increasing in Southampton, not just now but well into the future.