Shropshire house prices rising but lagging behind other areas

Latest figures from the Land Registry, based on hundreds of property transactions registered in the county each month, show that the typical property value in Shropshire rose by 4.9 per cent to £192,468 in the 12 months to April.

Prices in Telford & Wrekin also increased, rising by 4.5 per cent to £147,253 over the same period.

Both authorities are running below the national average, as the typical property across England has risen by 9.1 per cent to £224,731. The average West Midlands property price is £173,321, following a 7.1 per cent annual increase.

Powys prices rose 6.2 per cent to £166,655 in the period, putting it well ahead of the Welsh average of £139,385, which is 1.7 per cent higher than a year ago.

On a month-by month basis, English house prices rose by 0.7 per cent between March and April, but in Shropshire they fell by 2.2 per cent. In Telford they were static.

Bill Brookes, from DB Roberts estate agents, said the overall effect of new stamp duty increases on buy-to-let or second homes would be seen later in the year, and that the latest figures reflect deals agreed in the later part of 2015.

"It was noticeable that investors went out of the market in April, but that clears the way for first-time buyers which has to be good news to a certain extent," he said.

Mr Brookes added that uncertainty around the EU referendum and the departure of investors from the market appears to be affecting demand now.

He said: "The figures reflect what was a buoyant market last year, but it would be a brave man who bet on a similar increase this year."

The measure of the number of housing transactions lags a couple of months behind prices, but shows that the number of properties sold in Shropshire has fallen over the last year – 307 deals completed in February, down from 404 the year before. Telford & Wrekin's number was steady at 178, compared with184 in February 2015.

However, a separate report by online estate agents HouseSimple.com suggests that Shrewsbury is enjoying a boost in the number of properties coming to market.

The number of houses on the market in the county town went up by 22.6 per cent between April and May – bucking a nationwide trend which saw half of towns witness a fall-off in property availability.

HouseSimple chief executive Alex Gosling said: "With the Brexit vote less than two weeks away, we could well see a significant drop off in activity at a time when historically there is a lot of activity in the property market."