It is, it has to be said, a fairly unique situation. Usually, a surge in house prices and values means that the first buyer, struggling to gather the deposit needed to get the best mortgage deal, is left behind.
The booming UK property market has slowly been leaving the second-time buyer behind too, thus to have a situation in which the property market is booming, but taking all buyers with it is something not seen anywhere else in the UK. It is not surprising, that the locality and online conveyancing in Nottingham is booming too!
What is happening in Nottingham?
2014 was a great year from the local property market. The number of first time buyers, often seen by many market experts as an indication of the true ‘health’ of a property market, was at its highest for 7 years.
House prices in Nottingham were also rising, a staggering 10% increase in most cases.
The Halifax, a powerful player in the mortgage lending market, estimates that over 326,000 people bought their first house in 2013, an increase of nearly a quarter on 2012 figures.
These figures have only been seen in recent times in 2007, before the 2008 banking collapse that took so many casualties with it. The average cost of a home in Nottingham increased from £83,000 to £91,000 and the demand for houses in this buoyant market is also helping to not only maintain the marker values, but push them higher too.
It seems there is a confidence in Nottingham that other areas of the UK have yet to realise. People are feeling confident in their jobs, prepared to take a leap, or so it seems, and get their first home with some great mortgage deals.
The estate agent take on it all
2014, estate agents in some parts of the country will tell you, was the year that they noticed their local property market beginning to move out of the doldrums it had been in since the recession landed with a bang in 2008.
And they say, 2015 has started the same way and have no reason to believe that it will go any different or change direction later in the year. Nottingham estate agents are saying that the increase in house prices is not a mystery to them; the normal lull in buying over Christmas and New Year did not really happen in 2014 and thus, this demand for houses, coupled with less stock creates the imbalance between demand out stripping supply. Thus, the inevitable increase in house prices takes pace.
The impact of politics and uncertainty
When a general election looms, the prospect of change always presents issues to the financial markets, including the property market. Thus, now the election is over and stability restored for the next 4 years or so, the property market will start to pick up in confidence once again.
And Nottingham is ready for it.
But the first time buyer in Nottingham is bucking the trend in many other ways too; one being the type of property they are looking and buying. Many experts believe this is down to the change ins stamp duty which would have cost the buyer of three bed semi-detached at £130,000, over £1,300 in duty but now, this figure is much lower.
Thus, the first time buyer in Nottingham is shunning the box-like, start homes and getting the family property they need and want, in to which they can grow into.
And the future holds?
There is positive talk of the property market across the UK as a whole, with the situation in Nottingham being held up for all to see as what can happen when the market is working.
The stamp duty relief and changes is making an impact, as is the 20% of the value of a property for first time buyers from the UK Government too. They are both providing a boost that a stagnant property market needed.
Wages have not increased to match the Nottingham increase and yet, buyers are still finding deposits and mortgage deals to be able to clinch the home they want.