Hi, I’m Ravi Seth, Managing Director of Seths Estate Agents and I wanted to give you an update on what the residential property market has been doing in Evington over the past 12 – 18 months.
More, now than ever, people are worried about property prices due to Brexit and other issues going on in the World. However, property asking prices in Leicester are certainly at an all-time high, and have surpassed pre credit crunch prices.
I am concentrating on the area between Evington Road (near the East Park Road junction) down to the bottom of Kingsway Road / Highway Road, and all the properties in between; it does not include the Evington Village area.
This part of Evington is split up, almost equally into the smaller terraced type houses and the larger semi detached and detached houses.
A typical 2 bed terrace house off Evington Road which sold for approximately £125,000 in 2016, is now selling in the region of £135,000, which is an increase of approximately 8%. The 3 bedroom terrace which were selling 12 – 18 months ago at around £135,000 are now in the region of £150,000 – £160,000; an average increase of approximately 15% which is very strong.
It is interesting to note that the typical buyer for the terraced property, 9 out of 10 times, is an investor as opposed to an owner occupier. I think that this just goes to show that although the stamp duty was increased last year for buy to let properties, it hasn’t put a downer on this market. In fact there are very few empty rental properties in the area, indicating that there is still a healthy demand for rental properties in the area.
If we now look at the semi detached properties typified by the ones on the “Way Roads”, we get more buyers looking for these than any other type of property in the area. There is currently a shortage of supply, and it is a sellers’ market.
A typical 3 bedroom semi detached, with a garage and a reasonable sized kitchen, in good condition, is fetching in the region of £275,000. Eighteen months ago, similar properties were fetching £225,000 – £235,000. That is an increase of almost 20% which is phenomenal !
In this sector, almost all purchasers are owner occupiers. The other big change we have seen is that people want to put their own stamp on a property, and where previously if you had a dated property that required cosmetic upgrading, it would have been prudent to carry out works and make a small profit, this is not necessarily the case now.
Let me illustrate with an example. Say your property is dated and currently worth £220,000. You may want to put in a new kitchen, bathroom, carpets, etc and also replaster and decorate. By the time you do this, you could easily be spending £30,000 – £40,000 and may ultimately sell for only £255,000 – £260,000. Although there is a good chance you wont loose any money, there is not much to gain. For the purchaser however, he would rather buy the property at £220,000 and spend possibly more on it, but have it the way they want. “Neutral” doesn’t necessarily sell any more.
Part of the reason for this is that refurbishment projects have become a lot more exhaustive, and it is not uncommon on hearing people spending £25,000 on a kitchen, or £10,000 on a bathroom or even carrying out large extensions. Previously the typical buyer was in a chain and had to move into the property upon completion. Now, numerous buyers are living with parents, or converting their current house into a buy to let and are therefore no longer in a rush to move in.
Part of the reason, I feel, that prices are high is that interest rates are at an all time low. Even though they will go up at some point, even if they do reach 3 – 4 % in a few years, this is still very, very low – consider in the 1980’s rates were as much as 15% !
Should you require any advice in respect of selling or buying, please feel free to call me on 0116 273 9090 or email me directly firstname.lastname@example.org
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