THE NUMBER of mortgage-free households has risen to more than 40 per cent in Malvern and 35 per cent across Worcestershire in the last decade, according to a leading local estate agency.
Nicol and Co’s latest market update drew on data from the census, which began recording mortgage status in 1991, with the 2021 Census marking the first time mortgage-free homeowners were in the majority.
Other figures researched by Nicol and Co show while there has been a four per cent increase in households who rent privately across England and Wales, taking the national figure to 20 per cent, the private rented sector is much smaller in Worcestershire at just 13.9 per cent.
Matt Nicol, managing director of Nicol and Co, explained the local figures were higher than the national average of mortgage-free households, which had risen from 31 per cent to 33 per cent.
He said: “Recent historically low interest rates have enabled many homeowners to pay off their mortgages faster.
“The Census also shows that households that still had a mortgage have now dropped from 33 per cent to 29 per cent.”
Mr Nicol said: “This potentially points to opportunities for developers and investors considering build-to-rent schemes in Worcestershire.
“Such projects are likely to benefit from this national trend and enjoy strong local demand.
The market update from Nicol and Co also revealed 40 per cent fewer sales in Worcestershire in the year ending 30 October 2022, largely because the previous year was boosted by stamp duty incentives.
The actual number of transactions, based on the Land Registry figures, was 3,795 sales in Worcestershire, including 1,668 in Worcester, 40 per cent down on the previous year, with 611 in Malvern and 437 in Droitwich, both down 35 per cent.
Conversely, while transaction vales varied across the county during the last 12 months, Malvern’s average transaction value up nine per cent to £303,000, Droitwich’s was up four per cent at £284,500 and Worcester – where 44 per cent of sales were recorded – up seven per cent to £247,500.
Meanwhile, the local average lettings figures, researched from Dataloft, also show growth, with monthly rent in Malvern up 12 per cent to £886, Worcester up eight per cent to £785 and Droitwich up 17 per cent to £729.
Visit www.nicolandco.co.uk/worcester-droitwich-malvern-market-update-february-2023 for more.
