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House prices in Nottingham up by ten per cent in a year - biggest rise in a decade


01-03-2015

 

Property prices are rising in Nottingham

Property prices are rising in Nottingham

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House prices in Nottingham have increased by more than 10 per cent over the last year – the biggest annual rise in a decade.

And estate agents say they expect the cost of property to keep on rising this year.

The latest figures from the Land Registry’s House Price Index show the average cost of a home in Nottingham in November was £91,446, up from £83,602 in November 2013.

Meanwhile in the wider county, prices of properties were up 4.7 per cent to £126,255. Agents say that higher demand for properties is pushing the prices up.

Paul Sweeney, director at estate agent Robert Ellis, said the market was now moving quickly.

He said: “Last year started quite quickly and I think the same will be true of 2015. We have already had two houses go through between Christmas and New Year.

“Where there’s more people wanting to buy than properties, it will push prices up and I’m not surprised that the index shows prices are up 10 per cent in Nottingham.”

Mr Sweeney said the pending general election in May might shake things up.

“The effect of the election on the market will be interesting.

“You might see people sitting on their hands from April waiting to see what happens.”

But he also said many first-time buyers were looking at three-bedroom homes, rather than traditional “starter homes”.

“Changes to stamp duty will help this, with a £130,000 house only having duty of £100 compared to £1,300 before,” he added.

The increases in the House Price Index in Nottingham were mirrored nationally with the cost of a home increasing 8.3 per cent across the country.

The largest increases were in London and the South East, with 17.4 per cent and 11 per cent respectively, with Wales having the slowest growth in the UK with just 1.7 per cent.

Paul Perriam, area director for William H Brown in the East Midlands, said he felt 2015 would continue where 2014 left off.

He said: “I can see it going very positively in 2015. It’s a good time to buy if the prices are set to continue to rise, which we expect.

“It’s also a good time for people looking to take their next step and move into a new house as the price of their property will have increased.”

Estate agents say schemes like Help to Buy – where the Government provides a loan for up to 20 per cent of the value of a property for first-time buyers – have helped.

Among those who have benefited from the scheme are Helena Cooke, 23, and Ricardo Whyte, 21, who will spend the new year in a new home in Heron Court, Arnold.

Helena, who works as a customer service adviser at TSB, said: “We wanted to move out on our own but didn’t want to rent as this seemed like dead money, not allowing us to grow.”

But others who are looking at getting on the property ladder said costs were getting prohibitive.

Brian Maguire, 27, rents his home on Henry Road, West Bridgford.

He said: “First-time buyers need a lot of help getting into the market, so cuts like the one to stamp duty might make it easier for us.

“But it’s still a lot of money to start off with.

“My wages haven’t gone up 10 per cent, so it just means the gap is getting more and homes becoming more unaffordable.”

Rising house prices in Nottingham are a double-edged sword. On the one hand it is reassuring to see there is demand for homes in and around the city. On the other, the price rises will take properties further from the financial reach of many residents.

The positive view first. An annual house price rise of 10 percent in the city and five per cent in the county will be welcome news for those looking to downsize. It will also benefit unfortunate homeowners trapped in negative equity after the value of homes, particularly in the city, collapsed 10 years ago. Meanwhile, those who have bought while the market was flat will be encouraged to see their new asset appreciate in value.

The increasing price reflects demand for homes. This should not be a surprise. Notts is a great place to live and work and we want, and expect, people to move into the area whether that be to work or study

The price rise suggests the local housing market is moving and that is helpful for people coming to Nottingham and those already here, who want to move.

The downside is that large numbers of people cannot afford to buy a home and feel trapped in the rented sector. In Nottingham, the average house price is already approaching nine times the average disposable income. While the Government's Help to Buy Scheme is useful it will not be enough for many.

All of this points to the need for more homes. But they need to be planned carefully, with a good proportion of affordable properties and protection of green spaces built in. Urban, affordable, brownfield development must be the aim.

www.nottinghampost.com/

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