Spring market update – Nottingham
The spring market has certainly sprung in Nottingham and we have experienced unprecedented demand from buyers with a property purchase high on their agenda.
We have also noticed a large increase in investor activity looking to purchase buy-to-let properties 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 previous changes to Stamp Duty and now the latest election result, which has fuelled confidence and increased buying capability in the market.
We have seen an increase in new build developments coming to the market in recent months which have subsequently sold very quickly. This again shows that more house building is urgently needed as the demand is still dramatically outstripping supply. Many first time buyers are being attracted to these new homes and depending on when they purchase they can sometimes specify and tailor internal fixtures and fittings to their liking which is a compelling offer given the current property supply on the market.
Incentives are being offered to entice buyers including stamp duty being paid and part exchange options being considered.
The average property price paid in Nottingham over the last year now stands at £164,024 and this is calculated from the 10,030 properties sold in Nottingham over this period. Values have increased over this period by 1.27%.
This price increase is fuelling confidence for home owners looking to sell and subsequently the average asking price in Nottingham now stands at £206,790 taken from the 4,167 properties currently on the market today.
Housing supply in Nottingham is not meeting the current demand and this is clearly seen by the increase in asking prices, number of viewings per property increasing and time spent on the market dramatically reducing. This is fantastic news for anyone thinking of selling their property.
To take that next step up the property ladder please call 0115 853 2199 to discuss your options and arrange your free market valuation.
The rental market has strengthened further in recent months with a higher demand for properties in and around Nottingham city centre.
We are noticing a trend that tenants are now looking for a property to settle into for a couple of years whilst they save deposits to get onto the property ladder themselves.
This offers greater security to landlords as they can usually count on longer tenancies and reduced void periods.
Coupled with increased demand are also increased rents. This means that traditional ‘buy to let’ landlords and ‘accidental’ landlords are finding themselves in a more secure position with higher rents and low interest rates.
The average asking rent in Nottingham now stands at £1239 pcm taken from the 2581 properties currently being marketed.
The big question floating around at the moment is how long will the interest rates stay where they are? Unfortunately the answer to this is still unknown although many financial analysts are now suggesting it will be 2016 before any significant change is seen.
We have been told by our independent financial advisor that there are some excellent long term fixed products out there at the moment, which will offer security and the ability to budget across the coming years, which has to be a good thing.
If you’d like some more information on this then please call our office on 0115 853 2199 to have an informal chat with our financial advisor as to what option best suits you.
As with the sales market, there’s currently a substantial shortage of good quality properties to meet the demand from tenants moving in and around Nottingham. This is fantastic news for letting agents and landlords although not so good if you are looking for a property to rent.
If you are a landlord with a property to rent and you’d like to get an up to date valuation on your property and discuss the option of Liberty Gate finding a tenant for you then please call 0115 853 2199 for more information.
If you are a tenant looking for a property to rent then please contact our offices or visit our website www.libertygateestates.com to find your next home.
All statistics and figures have been taken from Zooplas price data.