Nottingham’s on the move in January
January has seen a tremendous start to the New Year! On the sales front we have experienced unprecedented demand from buyers looking to kick start the New Year with a property purchase high on the agenda. As a result we’ve seen a large increase in investor activity looking to purchase buy-to-let investments as well as a large increase in first time buyers actively making offers. Part of the reason for this increase in first time buyer activity is undoubtedly down to a number of good mortgage products now being released specifically tailored for this sector of the market. On top of this there are the changes to Stamp Duty which has fuelled confidence and increased their buying capability.
Supply at the moment is not meeting this demand and this is clearly seen by the number of viewings per property increasing and time spent on the market dramatically reducing. In January it has taken no more than 4 weeks for our current sales stock to receive an asking price offer!
The rental market also started 2015 with a bang! Furnished apartments in the city have been getting snapped up within 24 hours of going on the market. This high demand has mostly been fuelled by young professionals starting new employment and graduates taking internships in the city. This is great news for landlords when January has typically been a slow month in the past and there are strong signs of this demand continuing into February and March.
Average house prices across the East Midlands region have increased from £175,495 in December last year to £177,170 in just one month. In comparison to January last year we have seen a 3.8% increase in the average house price.
The current market is summarised extremely well by Rightmoves January House Price Index Key Points below:
- Highest ever Rightmove page views on Sunday 11th January and site visits to date up over 10% on last year, setting a bullish early tone
- Price of property across the UK coming to market up 1.4% (+£3,798) in a month where prices usually fall
- Upwards price pressure as the number of properties coming to market (+2%) fails to replenish agents’ historically low stock levels – currently 10% below same period last year
- Activity boosted by Stamp Duty savings of up to £1,250 for some first-time buyers – double incentive for early-birds as average property price in this sector is down by £1,132 this month
In spite of the above and low mortgage and inflation rates, sellers will have to work harder in 2015 than in 2014:
– Election jitters and mortgage restrictions suggest a moderate reduction from the high transaction volumes seen in 2014 – 2015 will be the ‘Year of the Selective Mover’
– Lenders are selecting buyers who are good risks to lend to, and in turn buyers are very selective with the properties they choose
With real confidence returning to the sales market and lots of movement on the rental market, demand for high quality properties has never been higher for this time of year.
If you have a property coming vacant shortly, please don’t hesitate to get in contact with us on 0115 853 2199 for a free assessment of your options.
Maybe now is the time to consider selling or even looking at increasing your rents to capitalise on demand?