Latest Property Market Update for Nottingham
Listen again to Kate Faulkner
The latest Land Registry information suggests that the City of Nottingham is just holding its own versus the lows of 2009, with a current average price of just over £86,000 versus previous lows of £85,500. Having tracked this figure over time, it's likely (on average) for properties in the centre of Nottingham to hover around the lows of 2009, sometimes dipping below and sometimes as this month, hovering just above.
In contrast, Nottinghamshire has dipped under the low of £119,000 in 2009 and the latest average price is just over £118,000. This suggests just like our economy, Nottinghamshire property prices have hit the same ‘double dip' the economy is suffering.
When we look at the averages for the East Midlands however, the picture is very different and properties, on average, are still £3,500 (approx. 3%) more now than in 2009.
How does the buying/selling process compare currently to England/Wales?
Data from Hometrack shows on average people are offering around £93,000 for a property priced around £100,000. Prices are fairly static to slight falls and the percentage of sales agreed is better than the national average, but falling. On average, properties are taking around 12-13 weeks to sell - but this really depends on your area, the type of property and how many similar properties are for sale versus the number of buyers willing and able to make realistic offers.
What does all this analysis actually mean for people and property?
For homeowners, the key is less to understand the market, but know what impact it has on your specific property. You need to know how much equity you have in your home and whether this means it is more difficult or easier to secure the best mortgage deal. Typically for those with 25% or more equity (ie if you have a property worth £80,000 and a loan of £60,000, you have £20,000 equity which is equivalent to 25% equity) lenders are still keen to fund your mortgage, so deals tend to be better. For those who have 10% or less equity, you need to check you are on the best rates through a broker or financial advisor as less companies are keen to attract your business.
For first time buyers, a falling market is a tough place to commit to buying in and whether now is a good time to buy for you typically depends on your personal financial and your job security. Ideally as a first time buyer, you'd purchase in a slightly rising market so you were assured of your property growing in value. To buy in a falling or low market, you need to be sure you will stay in the property for five or more years. For those struggling to secure a deposit, it might be worth considering some of the many schemes to help you on the ladder such as Shared Ownership, NewBuy or Equity Loan Schemes.
Cracking offer for shared ownership: Two bed flat for £15,000 through Derwent Living
Shared ownership is a different way of owning a home. There are pros/cons, but none are any worse than buying privately or renting. Great for those who want the stability of somewhere to live, but don't have the funds to fully support a deposit or full mortgage to purchase a home. Over time you can buy the property outright or stay where you are.
For those who are buying and selling, the current market has less meaning. For you, it's much more about whether you can sell the home you live in for enough money to be able to afford the new property you really want. For those trading up or down, typically you will be doing so for many years. So if you are intending to stay in the new property for 10 or more years, it's likely any issues caused by the current property market will iron themselves out over time.
For investors and self-builders though, the current market is very important but it is also very specific to your circumstances and the type of property you are planning to invest in or build. To get this right, you need to have professional valuation help from local, expert RICS surveyors who understand your purchase is more of a financial one than just buying a home to live in. Ideally you'd want to buy ‘at the bottom of the market'. A great idea, but you only know when the true bottom has been hit some years afterwards. For example, many thought 2009 was the ‘bottom of the market' but in fact this year prices have dipped below these levels in the Nottingham area.
So, if you are looking to carry out a property project, it's important to do your own research and then work out whether a falling or rising market means now is a good time to achieve your property objectives.
Analysis of Clifton versus the Park - Clifton is the winner!
Clifton: Out of 186 properties listed on Rightmove, 57 are sold giving a 30% sold to sale ratio
Built mainly in the 50s and at the time, the biggest housing estate in Europe, most of the properties are good sized three bed homes with decent gardens. They typically sell for between £60k to £100k, with brick built, extended and well-kept homes commanding the better prices.
The market is currently amazing. Chatting to Steve at Bairstow Eves, they are actually selling more homes now than during the height of 2007 - albeit at lower prices. Even compared to the rest of the UK, Clifton is now the fifth most successful office out of 1,200 Bairstow offices, which is an incredible performance!
Buyers are typically first timers or buy to let investors who purchase for the University and Queen's Medical Centre. With the forthcoming dualling of the A483 and the tram on its way in the next three years, Clifton could very well be on the up and with such great prices, a perfect place to look at if you want to buy or invest in Nottingham.
The only drawback for buyers currently is the lack of mortgage availability for first time buyers who have 10% or less deposit. Lenders really need to support this market, not just for new builds but for those who want to get their foot on the ladder via a ‘lived in' home.
Best Bargain: One bed flat in Clifton - Shame this one has been sold by Bairstow Eves, but a lovely one bed flat, right near the university for under £50k!
The Park: Out of 205 properties listed on Rightmove, 33 are sold giving a 16% sold to sale ratio
Not doing so well at the moment. Lots of properties for sale, few sold. Prices seem to have move downwards since the credit crunch relative to other areas with similar properties, such as Mapperley and West Bridgford. It may have lost the hype it had a few years ago, so those buying there are typically trading up/down within the Park itself or live in that type of area in other places around the UK.
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