Radio Nottingham March 2013 Property Market Update by Kate Faulkner

publication date: Mar 7, 2013
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

Radio Nottingham March 2013 Property Market Update by Kate Faulkner

National Picture vs Nottinghamshire

Property prices nationally are around 12% down versus 2007, and signs are nationally, they are as stable as they have been for the last two years.

Reality though, is national averages for property prices are meaningless and to be honest, I should stop quoting them!

Nottingham City, Nottinghamshire and the East Midlands are suffering nearly as badly as we were back in 2009 and in Nottinghamshire and the City, prices are from a few hundred to a few thousand pounds below.

For those who are selling at the moment, it continues to be a long haul according to Hometrack, with sales taking 14 weeks versus the national average of 10 weeks and the number of buyers/sellers making deals down too. 

Nottinghamshire Property Analysis - February 2013

Nottinghamshire Property Analysis - Feb 2013

If rents had risen in Nottinghamshire in line with inflation tenants would be £984 worse off!

According to latest data and feedback from the local Nottingham Belvoir offices and Index, Nottinghamshire rents are on average £572 per month for 2012, just a few pounds less than rents in 2008. However, they are 4% higher than 2011. In the East Midlands, rents are taking time to recover with January 2013 at £585 per month, similar to levels seen in January 2009.

Other rental reports suggest rents are on the slide in the local area, while average yields remain strong at 6% versus the national average of around 5%.

What does this market information mean for Nottingham tenants and homeowners?

For sellers – not so great news as there are more properties coming onto the market as we head into our sixth year of property price recession. Unless of course you are looking to trade up, in which case, now is as good a time as any if you can sell yours and trade up to a property you otherwise didn’t think you could afford.

For buyers though – this means it’s bargain time, so the investors are out in force and as first time buyers should consider being.

Having gone to the First Time Buyer Show in London last Saturday, I was stunned to find people there on salaries between £20 and £30k who had worked hard to save £30k or more from budgeting and putting any money they were given aside to fund their deposit.

In Nottingham, you only need from £5k to £10k to buy a decent home – and that can be a two bed, so that’s only £2.5k to £5k each and you can buy a property from £45-£60k or a new build under the Firstbuy Scheme. Alternatively if you are fed up with renting from a landlord and fear you’ll have to move on, but want to stay in the area long term, then try Shared Ownership as it gives you more security of tenure.

First Time Buyers in Nottingham have very little excuse now for not being able to afford a property as even the local authority is helping to fund deposits with £15 million they have put aside

From a tenant perspective, it’s better to rent sooner rather than later, even though rents are relatively flat, they will start to rise as soon as the economy picks up and this could happen in a matter of weeks.

Just make sure you only rent properties from landlords and letting agents who abide by the law and are members of one if not more than the following:-

NALS – National Approved Letting Scheme
ARLA – Association of Residential Letting Agents
RLA – Residential Landlords Association
NLA – National Landlords Association

What’s Happening Locally? Arnold versus Ruddington

Despite the doom and gloom of the Land Registry figures (which tend to be three months out of date with the current market), Haart of Arnold had a pretty busy Christmas and are finding first time buyers are coming back into the market. The renewed interest is being credited to a more flexible mortgage market.

The real driver though is cash rich property investors who wanted to buy before prices head north (they’ll be lucky!).

For sellers lucky enough to have a three bed semi in Arnold these are proving popular with all buyers and if you want to move, Haarts are confident they can sell your property as long as it’s realistically priced, clean and presentable. They don’t have to be show home level, but you will have to take money off to price for works and the time it takes to do up the property.

In comparison, Valerie at Royston & Lund which covers the Ruddington area, is seeing good demand for sensitively priced properties. The area continues to be popular as it’s good value for money versus West Bridgford, but you can still shop there! It’s also a bit quicker to get onto the A52.

The area should also benefit from the new tram link. It’s not close enough to affect the area at all, but with a brisk walk or short bus ride, it should make getting into Nottingham much easier.

Unusually, Royston & Lund are crying out for more properties to sell and suggest buyers sort their finances out before they start property hunting to make sure they don’t make offers they can’t fund!

Property Prices xx Arnold xx Ruddington
Three bed semi  £130k £165k
Two bed terrace £95-110k £145-160k

There are three essential tricks to buying, selling, investing or renting a home:-

  1. Have a list of things to do in advance
  2. Make sure you do them in the right order
  3. Work with high quality award winning companies who are members of trade organisations

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