At 7.1%, average annual price growth in the East Midlands is slightly lower than the UK average. However, growth is currently stronger than at any point since April 2016 and considerably higher than the 1.0% recorded this time a year ago. Price growth across eleven areas currently exceeds 7.5%. Rightmove report average asking prices fell by just 0.5% month on month across the region in January and properties are selling more quickly than a year ago.
Most active housing markets across the East Midlands
At £208,662 the average price of a property in the East Midlands is more expensive than a year ago and activity across the market is robust. On average 3.7% of private properties are sold each year, with turnover in eleven areas currently 4% or above. Over 11,400 new homes were registered for sale during 2020, and nationally registrations have been on an upward trend since September.
demand will be further boosted from April
First-time buyers were particularly affected by the closed housing market and the stricter mortgage lending that followed. However, buyer numbers have recovered steadily, with transactions just 2% lower year on year during the final six months of 2020 (UK Finance). The number of High Loan-to-Value (LTV) mortgage products has also increased, Moneyfacts reporting there were 169 products available at 90% LTV in January, over double the number available back in July. Lending rates remain low, the average mortgage rate the lowest in history.
The rental market is also seeing signs of recovery with confidence returning as the lockdowns ease. The restriction on international flights is still a limiting factor but the run into the summer is looking very busy and good quality rental accommodation is always in demand.
Tim Bannister, Rightmove’s Director of Property Data comments: “Concerns of a cliff edge for the housing market at the end of March have dissipated, partly due to the tax deadline extensions in all of the UK bar Scotland, but also because the already high level of buyer demand caused by the lockdowns has continued to surge since the start of the year. This demand will be further boosted from April by the new Government guarantees enabling lenders to bring back 5% deposit mortgages. With spring in the air and increasing confidence of a way out of lockdown confidence is returning to a market that is already buoyed by the stamp duty holiday extension announced in the budget.”
The East Midlands property market, with its convenient location and the investment in the region is seeing a surge in demand and if you are considering buying, selling or renting we would be keen to talk to you to discuss your needs and how we can help you. Just call 0115 855 9720 or email nottingham@centrick.co.uk or visit us here.
