BBC Radio Nottingham Property Market Analysis
Listen again to Kate Faulkner (approx 1hr 21mins in)
The latest news on property prices is that there is very little change from a national perspective, currently 12% down since the credit crunch. East Midlands has seen a slight improvement with a rise from £123,697 to £124,208 which is a small change, but when we get down to Nottinghamshire and into the City, prices are starting to dip below the lows of 2009. Six months ago the average price in Nottinghamshire was £121,462, now it's £118,099 - a fall of 3% or £3,500. For the City of Nottingham average prices were £88,090 and are now around £84,500, also a fall of £3,500, but a larger percentage fall of 4%. Average prices in Nottinghamshire and Nottingham City are now £1,000 lower than the lows of 2009, not much, but clearly prices are on the slide, although latest monthly price changes suggest a better performance.
If you are buying, there isn’t too bad a choice of properties and in many cases you can secure a bargain. On average it is taking up to 11 viewings and nearly 13 weeks to sell a property. However, where the seller is determined to move, prices their property fairly and cash buyers are waiting to bag the property they’ve been dreaming of owning, then deals can be done in a matter of weeks.
Mortgage Woes! Advice: Plan Ahead
Of course these falls are only averages. It doesn’t mean every house in the area has fallen in value and is likely to reflect some properties falling more than others. The potential downward trend together with the big news that lenders are increasing their mortgage rates, even though there is no base rate increase, is probably the biggest threat to the market this year. Forecasters aren’t expecting base rates to start climbing until 2014 and remain low until 2016. This meant pressure coming off mortgages and standard variable rates that were around the 3 to 3.5% level and now they are moving up to 3.5 and 4% or even beyond. This might not sound like a big increase but there are plenty of people ‘just coping’ at the moment and this could easily tip people from affording their home to having to sell it at a loss (negative equity) or quickly to avoid repossession, and that puts the strongest downward pressure on prices.
To help reassure you whatever mortgage you are on at the moment, if it’s coming up for renewal, check the value of your property, we can help with this or you can go on-line and our local company Experian have a new service called PropertyCheck which looks at how the lender will value your property, so that’s a useful guide. Talk to experts, go to an independent financial adviser and a mortgage broker and give yourself 3-6 months to find a new mortgage. Ideally you’ll have to have 25% equity to get a decent deal, but there are some deals for five and 10% equity levels.
From a rental perspective, prices are pretty stable although the rents in the City seem to be on the rise and typically people look to move in the summer months, so if you are thinking of renting, it’s a good idea to try to do so sooner rather than later as rents are more likely to rise than they are to fall during the year.
Local Market Bingham versus Ravenshead
Local agents are finding the market is moving despite very low numbers of viewings and properties being sold. Although the average may be 10 viewers to sell a property, it’s more like three in the Bingham market according to local agents. It’s important to be aware that this doesn’t mean the agent isn’t have to work hard to achieve a sale, keeping chains together during these tough isn’t easy, so they are still having to earn their money!
Ideally Bingham buyers are keen to see properties which are in show home condition rather than needing work and agents who let properties are also finding tenants are looking for perfection. These days when renting tenants are looking not for a temporary place to stay, but a ‘home’ and as such they want a well maintained and decorated property.
Most of the demand is coming from downsizers rather than first time buyers and it’s expected that the dualling of the A46 which has really improved the peace and quiet in Bingham to have a positive effect on the area. Currently bungalows and 3-4 bed homes are seeing the most action.
3 bed semi-detached 1930's property - Asking Price £275,000
2 bed semi-detached 1930's property - Asking Price £179,950
According to local agents Ravenshead is bucking the trend versus 2011 with sales improving year on year. Most of the sales are people trading up to 3-4 bedroom homes who already have decent equity levels. Buyers are less fussy than in Bingham. They either want perfect homes or a complete wreck. Anything in between tends to stick on the market as there is little demand. As with Bingham, it’s a popular place for downsizers and smaller bungalows are extremely popular.
3 bed detached 1930's property - Asking Price £275,000
3 bed semi-detached property - Asking Price £152,500
Pick of the Best Nottingham Properties!
Wow Property (11 Bedrooms!)
| ||Near Newark, 7 acres, 16th Century, main house and two extra ones in the grounds! F rated EPC, so I’m afraid if you are looking to buy it is likely to be freezing and very expensive to heat!|
Bargain Basement (shared ownership)
| ||Heart of the city, amazing views, not what you’d expect from supported housing. But just £54k for 50% shared ownership. Small deposit, 5-10%. It’s basically yours and you pay a subsidised rent on top, but you can buy outright. Normally a long term option, so less a stepping stone onto the property ladder, but for a two bed, affordable, different way of buying a home. Contact the Homebuy agents and they’ll check if your eligible.|
For rent – changing during the credit crunch! Cedar Heights near Mapperley
5 bedroom detached house to rent at £3,250 pcm!
A mere £3k a month and with its own shark tank. Leisure room, gym, ‘large shower’ ????!! For several people and it has lots of jets. Wine store of course and few beds, one includes a triple bed which I’ve not seen before.
NEED HELP FROM THE DESIGNS ON PROPERTY EXPERTS?
Email email@example.com for a one of our FREE Property Checklists.
Do you have a property question? GET AN INDEPENDENT ANSWER! ASK US via our PROPERTY FORUM, email firstname.lastname@example.org or call 0845 838 1763.
|Get a helping hand with our new Sellers Service for just £19.99!|
Property expert, Kate Faulkner, has joined forces with B&Q and other industry experts to offer a unique service, where you purchase a ‘property project pack’ that gives you:-
- An A4 ‘how to’ guide (approx 80 pages), containing Dos and Don’ts, Factsheets, Checklists, Handy Tips and Forms
- Access to Kate and her team, by phone and email, for any queries you might have during your project.
See the full list of Kate Faulkner's unique Property Services here!