Pandemic sparked 14pc rise in city house prices

HOUSE prices in Derby have increased 14% since the start of the pandemic, new data shows.

Despite the financial and economic uncertainty, the property market has seen a boom.

Online estate agent Strike has found house prices across Derby have increased an average of 14% over the past 18 months. Before the pandemic, the average property in Derby sold for £227,000, which has now increased to £259,000.

Further data revealed certain postcodes within the Derby area were more popular than others for prospective home buyers.

Borrowash was identified as the most popular on the property market, with 69 homes being sold in this area since the start of 2021. Allestree and Hilton were also among the most popular areas, selling 57 and 51 properties in the same timeframe.

There are 686 properties for sale in and around Derby, 32% of which are detached and 30% are flats.

Sam Mitchell, chief executive of Strike estate agents, said: “It has been 18 months like no other for the UK property market, but it’s clear to see that Derby’s market has flourished in lockdown, with the soaring house prices proof of its popularity.

“The pandemic has brought a change of lifestyle for many and with that has come changing needs for a living space.

“People are now seeking a property with more green space as well as room to be able to work from home on a more permanent basis, which likely explains why some areas have seen greater demand than others.”

Martyn Baum, associate director at John German Estate Agents, said: “In March 2020 the housing market in England was closed down by the Government as Covid restrictions started to tighten and we all feared the worst for house prices across the city. Many people were restricted to their homes with time to think and consider their future living arrangements. Some dreamt of a new home maybe with a larger garden or in a new area.

“Many of these people kept seeing income arrive into their bank accounts, either in the way of wages or furlough, yet had very few places to spend that money resulting in many people growing their savings pot.

“Take this time of reflection with increased disposable income and add in a huge tax saving for house buyers as the Chancellor of the Exchequer, Rishi Sunak, introduced a stamp duty land tax holiday, and the market in Derby and across many parts of the country went boom.

“Prices have increased at their fastest rate for a generation, demand for property is high and availability of properties on the market is very low forcing up prices further still.

“Particular hotspots are the desirable areas of Borrowash, Allestree and Hilton, which have seen many people scramble to save up to £15,000 in tax before the June 30 deadline. The market in Derby continues to be strong. However, the chances of another large increase in house prices is low.

“A slower and steady increase is far more likely. Our city is very popular as we have great facilities, further growth and investment and access to many other areas of the country.

“The future is bright for the Derby housing market.”