The Midlands buck the property slump trend.

24 Jan 2019


With all the recent doom-and-gloom about the UK property market, a number of regional hotspots are being overlooked. 

If you’re a homeowner, landlord or property investor in the Midlands, you could be facing a more lucrative 2019 than the rest of the country.


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East & West Midlands Property Booms

London has long been the crowning jewel of the UK property market. But, after years of home value gains, asking prices recently fell to their lowest in more than three years.

Yet it’s a different story altogether in the Midlands:

  • The region has seen some of thefastest house price growth in the country, with the average price rising 6.5%. 
  • Properties in the East Midlands are selling faster than almost anywhere in the UK,at an average of 58 days.
  • Despite price gains, home buyers aren’t facing the affordability restrictions found in the south. The 25% lowest earners can still afford to rent or buyin the Midlands, unlike many other parts of the UK where they’re increasingly being priced out.


Here are some of the key Midlands hotspots every homeowner, landlord and investor in the region needs to know about in 2019:


1. Birmingham

Birmingham tops the charts with one of the fastest house price growths (twice the national average at 5.6% per year). It’s no surprise that property investment in the city is booming. 

1.1 UK's leading buy-to-let hotspot 

Birmingham is outperforming other UK cities for investment prospects, as revealed in a recent PwC report. In particular, the city is dominating in its student property returns, with the highest rental yields of any UK university city. The B4 postcode boasts an 11.66% yield compared to just 3% in London. Our Birmingham estate agent experts can help you better understand the rental potential of your property today.


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1.2 Birmingham’s hottest property areas

  • PropCast’s latest House Selling report listed the B34, B28 and B44 postcodes as some of the easiest areas to sell a house, with high demand and fast sales. 
  • The town of Smethwick saw some of the fastest house price rises in the UK (9.67% since January 2018), where properties can expect to see a £16,000 increase in value over 12 months.
  • If you own property in these areas and want to find out how to maximise its value, contact Online Estate Agents today.


2. Leicester 

Leicester is another Midlands location bucking the trend, reporting one of the UK’s best year-on-year growth (250% since 2000). 

2.1 Leicester: a commuter hotspot 

With stretched affordability in London, the number of young professionals leaving is at its highest level in decades. Leicester is fast emerging as a key commuter hotspot, with London and Birmingham around an hour away. This is placing Leicester firmly on the Hometrack House price index as one of the best UK cities to invest in. Our online estate agent experts can help you position your Leicester property for young professional home buyers. 


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2.2 Shortage of property benefits Leicester homeowners 

There is a shortage of new properties coming onto the market in Leicester, with family homes in certain school catchment areas in particularly short supply. This is great news for Leicester homeowners, who can expect high demand for their properties. But it’s crucial their homes are priced correctly, as this shortage is sparking some unrealistic asking prices, unnecessary delays and extensive sale times. Well-priced Leicester properties are proving to sell very quickly. To ensure your Leicester property is correctly priced, get a free and instant online property valuation here.

Rental prices in Leicester are also being affected, increasing at a faster rate than anywhere else in the country. In such a climate, Leicester homeowners might consider renting over selling. We can provide advice through our Leicester letting services


3. Nottingham

Another Midlands hotspot, Nottingham is one of the UK cities forecasting the highest house price growth in 2019.

3.1 Nottingham’s serviced apartment trend

Although property prices in Nottingham are below the national average, the rental market is strong, generating an average rental yield of 6-8%.Nottingham postcodes NGI and NG7 were recently listed in the top five in the country for buy-to-let yields. 

Young professionals seeking convenient, city centre living has brought a surge in demand for serviced apartments. If you’re a Nottingham city centre landlord, we can help you differentiate your serviced property in this lucrative yet competitive space. 

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3.2 Nottingham property market insights

  • Since the roll out of the Selective Licensing Scheme in August 2018, many Nottingham landlords have faced increases to fees on their city-centre apartments. Nottingham landlords with multiple properties might start to find more profitable opportunities in selling up in 2019. Our Nottingham letting agent experts can talk you through your options. 
  • West Bridgford has become something of a Nottingham hotspot, with prices increasing faster than city centre property over the past 5 years. 2019 is seeing prices plateau, with properties taking a lot longer to sell amid heightened competition. Yet with prices in the area still at their highest (£441,294 on average), now could be a good time to sell. Just make sure your property is correctly priced to stand out from the competition with our free, online house price valuation.
  • West Bridgford has become something of a Nottingham hotspot, with prices increasing faster than city centre property over the past 5 years. 2019 is seeing prices plateau, with properties taking a lot longer to sell amid heightened competition. Yet with prices in the area still at their highest (£441,294 on average), now could be a good time to sell. Just make sure your property is correctly priced to stand out from the competition with our free, online house price valuation.

 

Conclusion:

There are still a number of uncertainties on the UK property market horizon, including Brexit, the prospect of rising interest rates and the ongoing shortage of homes for sale. 

However, the Midlands is standing out as a lucrative exception to the UK’s property slump trend. 

Get in touch today with your local experts to discuss your Midlands property. You might just find its time to get your house valued for 2019. 


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