Homeowners across Nottinghamshire could see house prices plummet in the next few months as housing experts predict that the property market bubble is about to burst. It comes as a recession threatens the UK along with the rising cost of living and soaring mortgage rates.
Housing experts at PropCast have created a 'weather report' for the UK which shows where buyer demand has risen or fallen between June and September. They analysed data to create a list of the worst-hit areas for decreasing house demand and prices which included Nottingham.
The temperature is measured on a degree scale based on demand. If an area scores over 34 degrees then it is a hot market which could mean sellers can sell relatively quickly. However, below that indicates a colder market where sellers could struggle to get the property sold.
Read more: Second cost of living payment details and when tax credit claimants will receive £324
The list included hot spots for falling house prices such as Cornwall, part of Wales and the Isle of Wright. Nottingham is tied for sixth place on the list alongside Worcestershire and Bedfordshire after the three areas experienced a 13% drop. Nearby, Leicestershire was also mentioned after it experienced a 12.5% decrease.
Some areas of Nottingham are still reading as 'hot' on the list including parts of Beeston (NG9) which recorded 63% with predictions that properties would 'be quick to sell in this area' although the 'market is cooling'. Sneinton (NG2) was also predicted to be 'very hot' as it scored 60 on the temperature predictor.
Similarly, the housing market in Eastwood also scored high with 50 degrees. Lenton was another area that remains high as it revealed a 56 score. Despite this, overall, Nottinghamshire has still experienced a decrease of 13%. So what could this mean for those looking to get on the property ladder or looking to sell in the next year amid what could be an increasingly difficult climate?
Director of Robert Ellis, Paul Sweeney, shared that there has been an "exceptional property growth" over the past two years since the easing of lockdown in the summer of 2020. He feels that demand is still strong across Nottingham despite the report.
He said: "There has been a lot of demand for property at all levels with people looking to upsize larger properties as families expand and people work more from home. Families also want to be closer together now for support network reasons and first-time buyers are looking to get in on the property ladder due to increasing rental prices.
"So with strong property growth in the last two years, property prices around Nottingham where we handle has gone up on average around 25%. It's inevitable that that would level off at some point and we already saw prices start to level but I disagree with a 13% drop. I think it depends on what statistics you are looking at."
He added: "There are indications that over-adventurous asking prices aren't being achieved so clients have been encouraged to reduce prices to a more sensible market to try and sell them. That doesn't mean that property prices have fallen by 13%. We have encouraging news that buyers are still out there but they are realigning their sights in terms of what they can afford with interest rate increases."
Paul highlighted that interest rates have fallen slightly from the media predictions of 6% as it remains just under 5%. Although this is an increase from 1.5% to 2% during the summer, there is still demand for housing in the city and further afield.
He said: "We've seen an increase of people looking to buy within Nottingham both for property and investment purposes. We have also seen the resettlement of people into the area not just from the UK but overseas as well."
He added: "You always see hot spots for housing around good schools with Ofsted reports so that could be Stapleford, Chilwell, Toton or West Bridgford too. Good transport links are also important for people and interestingly, places like Clifton have gone up tremendously in value in recent times because of the accessibility."
"We have seen certain shifts but I'm not seeing any downward pressure on values. People are not as tied as they once were to living close to where they work because of hybrid working so they can now spread their wings and move out into the leafy suburbs and countryside."
Read more:
- Concerns in village where cars are 'flying down' road to avoid roadworks
- MP details electricity bill for Nottingham HMRC office block 'lit up like a Christmas tree'
- Student flats plan for street where some big brands have moved out
- Police knife search at Nottingham play area after large groups congregate
