Kate Faulkner's Latest Property Market Update with BBC Radio Nottingham

publication date: Dec 19, 2012
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

BBC Radio Nottingham Property Market Update December 2012

Listen Again - (approx 1hr 13:55 mins in)

Land Registry - National Picture vs Nottinghamshire

Property prices in 2012 have taken a little bit of an upturn in the last few months. Last time I reported that City of Nottingham prices were at their lowest since 2007 at £84,372. Now they have made a little recovery to £84,642. East Midlands and Nottingham property price averages are pretty static.

This is a fairly typical picture across the UK, one month prices are slightly up, and the next they are slightly down, overall in 2012, prices are much the same today as they were at the start of the year.

Average Property Prices for Nottingham During 2012

From a number of properties sold perspective, we are averaging around 210 properties per month with a slight uplift from May. It’s currently taking around 13 weeks to sell a property, which is slightly longer than at the start of the year. Buyers are still trying to get a bargain by offering an average of 93% of a property’s value (ie if the property is priced as £100,000, buyers offer £93,000).

From a rental perspective, the new index from Belvoir Lettings (I developed this!) shows that over the last five years, rents have been very good value for money, running at around 2% LESS than they were back in 2007. The data is calculated at county level and Nottinghamshire shows that rents hit a high of £574 per month in 2008, then dropped to £550 per month in 2010 and 2011 (more in the City Centre), but we’ve seen a good recovery in 2012 back to the £574 per month.

Forecast for East Midlands 2013:-

Centre for Economic and Business Research  N/C
Savills 0.5%
Capital Economics -0.5%
Belvoir Rental Forecast Static to 2% Rise

Advice for 2013:-

Buyers: It's a good time to buy, but need to make sure your finances, including your credit reference, are in good order
Sellers: Some areas may pick up a little in 2013, but most will stay the same. Price fairly, remembering prices are
10-20% lower than they were in 2007
Tenants: Rent or move early in the year as rents are likely to rise, albeit slowly, over the coming year
Investors: This is a good year for a bargain, may have better finance deals available in Autumn 2013
Self Build: Now, now now!! Over 130 plots available in Nottinghamshire. Anything from £30,000 to £100,000 or more
Renovators:    Be careful on what you spend if you need to make sure you increase the property’s value, but a great time
to bag a renovation bargain

Property News

Future Homes Commission from Royal Institute of British Architects

Recommendations to the government on how to get ourselves out of the housing crisis:-

  • Local Authorities need to ‘take control’ of property supply
  • Need to liaise with existing local communities – before they hear about potential development in the press
  • Funding for new homes need to change, private developers can’t afford and shouldn’t be expected to fund all affordable homes, recommend institutional investment, and money and land from Local Authority Pension funds which aren’t currently delivering good returns
  • Industry has to work harder to encourage more than the 1:4 people who are keen to buy a new home to do so
  • Better designed properties will help which include storage and flexible space

Nottingham County Council looks like it’s taking a lead with help for First Time Buyers

  • MORE than 500 first-time buyers in Nottinghamshire could be helped to buy their homes thanks to a £15 million scheme
  • Under the scheme, it will loan people money for their deposits – if they can stump up the first 5% of it
  • It is capped at houses priced at £150,000 or less, and people must pay back the money within five years
  • The money comes from the council's reserve funds
  • Loans are being arranged in conjunction with Lloyds TSB, but are awaiting to hear the interest rate
  • Expected to become available in 2013

Property Checklists

We need help from Nottingham! We have launched this site and we need people to sign in, test it for us and let us know what they think. It’s not finished yet, but we’ve loaded over 30 checklists from buying to making money or renovating. If someone needs a checklist, let us know and we’ll create it free of charge.

Area Analysis
Hucknall (information from Haart Estate Agents in Hucknall)
2012 has been a really good year across the board, from first time buyers and investors to higher up the price scale, helped by new shops opening and a bar on the High Street this year. They are hoping for an even better 2013, with prices remaining pretty similar or may be even a slight improvement. Three bed semi detached properties are in good demand. Advice for sellers is to price correctly – regardless of condition, and make sure the property is well presented.

Prices in Hucknall:-
3 bed semi - £120,000
2 bed terraces from £50,000 to £85,000
3 bed semi - £135,000

Radcliffe on Trent (information from Ben Mardel of Richard Watkinson & Partners, Radciffe on Trent)
There is a little more consumer confidence around at the moment and prices are levelling. More buyers has meant quicker sales rather than resulting in more sales. Ben doesn't really expect prices to rise in 2013, but sees a bit more of a robust market in 2013.

Sellers need to present properties well so they look tidy, modernised and in a good state of repair, as they are finding people have to put down so much of a deposit, they can’t afford to spend anything on the property once they have moved in. Anyone who can sell and then rent is in a better position to buy.

Buyers and sellers need to research and check out their finances first to make sure they know they can afford to move.

Prices in Radcliffe on Trent:-
Two bed terraced houses range from £120,000 to £200,000, and three bedroom properties range from £200,000 to £300,000.

Properties to Buy and Rent

Wow Property 5 bedrooms, an amazing interior, gym, games room and tree house £899,950
Bargain Property 1 bedroom flat for sale in Nottingham £45,000

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