House prices rising faster in Midlands than anywhere else.

inner_grace

In the news today it has been reported that the asking prices on Rightmove are rising faster in the East Midlands than anywhere else in the UK. They have gone up by an average of 5.7% in the last year. https://www.thesun.co.uk/living/3130313/house-prices-are-now-rising-fastest-in-the-midlands-as-average-asking-price-hits-310000/

This is crazy when the wages in this area do not support it, what are your thoughts on this. From what I can see it appears to be quite a problem with detached houses that are in very short supply as can be seen with these examples:

Looked around this 4 bedroomed house last year but my house didn't sell quick enough, sold for £242,500 in the spring.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=39638307&sale=88224144&country=england

This one is available on the same road 6 months later but priced at £340,000 and has had a sold sign outside for the last month or so.

http://www.rightmove.co.uk/property-for-sale/property-62527298.html

Both were originally a 3 bedroomed detached with an extension over the garage.

Another example is of a 4 bedroom detached that was upgraded with high spec fixtures and fittings and the garage extended into the lounge. Sold on 05 Jan 2015 for £238,000 and then again on the 28 Oct 2016 for £335,000.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=42503463&sale=4593796&country=england

They appear to be over inflated house prices and it appears to be happening more in some parts of the East Midlands more than some areas. There are plenty of 4 bedroomed detached houses available in Chellaston in Derby for example from about £250,000 upto a brand new one for less than £290,000! Great for people who live in Derby. Even though there are not many 4 bedroomed houses available in my area at the minute, most of the ones that have been listed have been sitting on Rightmove for a while yet the 3 bed semi detached are selling just after they go up for sale.

I have now sold my house but can no longer can afford a 4 bedroomed detached house and currently waiting for a 3 bedroomed property that I can extend or a 4 bedroom semi detached to become available.

What is happening in the East Midlands? How are these house prices affecting you?

Chanes

It's the movement of London prices that are driving things up. In London and until recently the prices were climbing at 200 a day, completely unsustainable and so people look elsewhere and it ripples out. Just a guess.

BrassicWoman

my Midlands home is a 5 min drive from the station (30 min walk in good weather!) and then 50 mins to London, always getting a seat on the train. Many other towns are the same.

cashbackproblems

London is quite flat at the moment and even falling.


Many firms are moving to Midlands e.g. Deutsche bank and HSBC have between them created thousands of jobs the last few years in Birmingham and housing supply stays tight pushing up prices. Also investors are looking outside the south east as buying in cash down here the yield is tiny in comparison to up north

brit1234

London prices have been falling in central London for well over a year and now in the suburbs and rippling out to South East. However I know a hell of a lot of people who have left London for Midlands and Manchester. With more planning to go.

So the price drop ripples haven't got to you yet their is a big migration North increasing demand there.

Doozergirl

My part of the Midlands has realy stayed the same since 2005. Demand dropped during the worst of the recession and those that had to sell sold cheap but it gathered what it had quite quickly but didn't rise too much.

I stopped watching the market and it has risen over the last couple of years, but it's absolutely nothing compared to London. It feels inevitable.

I'm a born Londoner, but Birmingham is really blossoming as a city and prices should be rising simply because it is becoming more desirable for me to spend time there

dlmcr

My observations of Nottingham :

In west bridgford a lot of overpriced semis have been sitting on the market for a long time. There are a number of reductions around although decent price and decent location generally sells quickly, there is no denying though that prices are higher than a year ago...

A lot of places in less salubrious areas of town are sitting around although selling eventually if the price is right. There are a lot of really grotty dumpy places in poor areas being listed at optimistic prices, no idea if they are selling or not. Interestingly this spike in pricing when you look at the sold prices almost everything that comes on is at least 20% more than the ceiling sold price for the street. Sold volumes at these new "enhanced" prices are tiny which is itself an interesting statistic, it will be interesting to see where volumes go over the next 12 months.

We are buying later on in the year and in terms of "ideal" location have our eye
on a handful of streets in wollaton, in the last 12 months the typical price has gone up on these streets about 40% (yes really!) and they are still selling in days, buyers just can't get enough of them!

eg sold price in this area of interest: in may 2015 = £132k, asking price Dec 2016 = 185k = SOLD in 1 week! eg2 sold in june 2016 = 126k, asking price jan 2017 = 179k = SOLD! in 1 week with minimal work done on either of these.

At the weekend we saw what looked like a probate unmodernised ex council semi at 200k which is well above ceiling price for the street it was on, will it sell, who knows - shortage is fairly serious here so it is possible that buyers will get desperate for that school catchment area and cave in..

In more terms general there is a lot of absolute **** coming onto the market here at silly prices, a lot of investment "portfolios" in the arboretum, which seem to be selling at the right price and also in the arboretum (traditionally a heavy student area) large 4 bed houses that need work are popping up at 200k.

Finally, there is nothing that suggests to me that brexit will have any effect whatsoever on prices one way or another here (or anywhere in UK) what will have an effect is the consequences of the negotiations whether that results in tightening of credit for the "average" buyer or other impacts for investors. As for "sentiment" that is hard baked into the mentality of the average buyer with renting alternatives in this country being so poor.

My personal view is that the housing market in this country has been broken since about 2002, if there was any impetus to fix this, it would have been done by now. It is depressing to see 1 bed flats in areas nobody really wants to live like Luton being sold for 300k and buyers are so grateful for the opportunity to be able to own such a place. From a personal point of view we are lucky to be in the postion where we can buy again and will buy later on this year, yes in Nottingham not Luton! Who knows where we are going in the next 5 years in terms of prices, on the balance of what "stimulus" I've seen since since 2008 probably only in 1 direction...

I count lucky though that I don't live in the south east and being forced to pay 300k for a 1 bed flat, or worse in NZ where a shed 60 miles away from Auckland is 170k which also has the dubious honour of being the cheapest property in Auckland...