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The change in the property market !

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Wed 21 Nov 2018

The change in the property market !

In the past 10 years or so, it has been known that the south has seen big property gains, from London all the way to Bristol and Bath, including Gloucestershire.  Property prices have rocketed high, which in turn has bought a tidy profit for the property owner, with many selling up during peak times and relocating further a field.  

One of the most common phrases we hear at the office, is “if only I knew that prices would rise as much, I would have bought another house”…

In recent times and since we wrote our blog “Is Leicester the next place to invest in” we know that the Midlands is becoming a key market to invest in and this is now spreading into the north too, with Manchester, Liverpool, Leeds & Birmingham becoming the new property hotspots.  However, with the Midlands still offering the highest property price gains in the market, with an average of 6% price rise in the last year and in some instances more, its is becoming an attractive place to invest in.

Melton Mowbray known for its rural and peaceful surroundings, has seen prices rise by as much as 12.8%, more than triple the UK average. 

Leicester has seen prices increase extremely well over the last year too, with an average price increase of 6% and in some cases more.  Leicester is becoming the new property hotspot in the Midlands due to its central position and with an average travel time of 1:30 hours to key cities.  

By contrast the south is starting to see a slow down on property prices by an average property price rise between 1.7% and 2%, with London only seeing a property price rise of just 0.3%.  

Savills have predicted that property prices across the UK will rise by an average of 1.5%, with the East Midlands seeing a property rise of 3%.  Although lower estimates in comparison to this year, Brexit has made for a more cautious prediction.  

As mentioned above, the Midlands has seen an average price rise of 6% and in some cases more in the double digit territory.  So why are prices increasing so much in Leicester and is this just going to be one off those short burst price rises?  No one can say exactly how property prices will behave in the future, however, for many large companies to be investing in Leicester, it is surely a good sign?

From our recent blogs which can be read here, we know that Zara has opened its UK flagship store in Leicester, Novotel is building a four star hotel opposite John Lewis, Nestlé the Swiss food manufacture is opening a new £55 million distribution centre in Leicestershire, whilst more and more developments are being built in the city, with many of these being rental apartments and catering for the new increase of businesses investing in Leicester. 

Birmingham has also seen a big shift in the property market, which in turn will aid surrounding areas such as Leicester.  HS2 will cut journey times from London and Birmingham to just 45 minutes, which in turn will encourage more businesses to open new offices in surrounding areas due to Birmingham being fairly saturated and limited on space. 

However, commuting from Leicester to London has for many years been very attractive and will continue to be, as many companies are investing in Leicester and this is due to the ability of arriving to London from Leicester in just 1 hour by train. 

According to home track, Leicester has seen property prices rise 6.4% with an average property price of £174,800.00 in comparison, London’s average property price is £482,000.00!  For many first time buyers, buying in London is increasingly becoming difficult and even surrounding areas of London are becoming more and more expensive pushing people to look further afield.  

For a first time buyer buying in London, with a 10% deposit, they will need to find an average of £48,200.00 in comparison with Leicester, where a first time buyer will need an average of £17,480.00 for a 10% deposit. 

In turn many are moving to East & West Midlands including the North of the country, meaning that corporate companies are having to look at their presence too and invest in these cities in order to be able to attract the talent they want. 

A classic example for this is HSBC, who have a prime building in London’s Financial district, has recently announced that it is moving its Head Office to Birmingham, which I’m sure many will follow soon after. 

Savills have also added that 2019 and 2020, Leicester will see a good increase in property prices, due to its beautiful scenery and surroundings it has to offer.  They have also added that Oadby & Wigston have also seen a double digit price increase this year and in the Spring to an average of 10.2%!

Whether its the peaceful & beautiful surroundings, good schools, a cultural city, Leicester is certainly seeing a property price increase and is becoming the next place to invest in, with many corporate companies and developers investing hundreds of millions of pounds.

There are still many great properties to buy in Leicester, for investment or to live in and you can find our latest properties by clicking here.

Thanks for reading !

Ravi Seth

Managing Director

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