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Seths Property Market Report September 2019

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Fri 08 Nov 2019

Seths Property Market Report September 2019

In March 2019 we released an article regarding Leicester being named the best city to invest in the UK where Hometrack’s City House Price Index showed that Leicester came at the top of the list with the highest annual property yield of 7.7%. Today Leicester continues to be a city in demand with the highest inflation growth in the UK of 4.5% in comparison with the UK average growth of 2.4% and a UK 5 year average of 3.8%.

Properties in Leicester are sold within an average of 8-9 weeks in comparison with the UK average of 12 weeks, where in inner London takes an average of 18 weeks, due to weaker demand and lower growth. Top cities have seen a wide shift in inflation with Manchester coming second to Leicester with a positive growth of 4.3%, while Aberdeen has seen a negative inflation rate of -5.5% and London is still seeing flat prices with a marginal negative inflation of -0.5%.

Although slower growth in some areas has lengthened the average time to sell a property, other factors such as higher house prices and stricter lending guidelines have added to the overall delay in selling a house. 

 

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However, the latest mortgage data continues to show that demand from buyers is high, especially first time buyers who are looking to purchase their main residence midst all the political & Brexit uncertainty. This is reflected by our previous article on Property Sales being Driven by First-Time-Buyers this year. 

Underlying market conditions remain strong for England & Wales despite political & Brexit uncertainty on the cards. Market research and analysis suggests that there is time for a further price inflation rise for Leicester, Manchester, Birmingham, Nottingham, Cardiff, Leeds & Sheffield. These cities have registered above-average growth in house prices over the last 2 years, as demand for housing and employment continues to rise with attractive affordability. 

Property Investment in Leicester continues to be strong, with many developments approaching completion, such as the rental apartments near the High Cross alongside the Novotel Hotel. Many property investors continue to invest in Leicester with many parts of Lee Circle, New Walk & surrounding areas (including the completion of the Mattioli Woods Headoffice) and Bath Lane seeing new developments while existing Developments are coming to a completion.

 

Melton Road is also seeing new apartments being build above the Balmoral and a further development taking shape in the two buildings owned by PIPI Brothers. Housing Developers continue to extend current Developments, while planning for new Developments in Leicester and Leicestershire, with new projects taking place in Wigston, Houghton on the Hill and as far as Gilmorton. 
 

The table below shows the UK Average house prices and YOY inflation rise for 2018 and 2019.


Overall Brexit and political uncertainty, with a General Election most likely on the cards, has affected house prices in the UK, while the added stricter lending criteria has added to the average selling time of a property in the UK. However, Leicester continues to show the highest growth in the UK with Investment Yields being at an all-time high.

Whether you are looking to Sell, Buy or Let, speak with a property expert today by calling us on 0116 266 9977!