House prices are rising twice as fast as the UK average
Cost of properties bumped up as some areas report record highs
HOUSE prices for first-time buyers in Leicestershire are going up more than twice as fast as the national average.
Figures from the Land Registry reveal new homeowners in our area had to shell out £197,491 on average to get on the property ladder in April this year.
That’s up by 5 per cent from £188,608 in April 2019 – an increase of £8,883 in a single year, and more than double the 2 per cent rise seen across the country as a whole. In Charnwood the price rose from £182,199 to £197,194, an 8 per cent rise and in North West Leicestershire, the prices rose from £170,563 to £186,545 a rise of 9 per cent.
It means people buying for the first time in Leicestershire would now need to have a deposit of around £20,000 (assuming a 10 per cent deposit) and pay around £930 a month on a 25-year mortgage.
It’s too early to say from these figures whether lockdown is having an effect, as house prices remained relatively stable between March and April.
However, according to Rightmove, July was the busiest month in more than 10 years for the housing market, and many areas saw asking prices hit a record high as sellers sought to make the most of demand.
Miles Shipside, director at Rightmove, said: “There have been many changes as a result of the unprecedented pandemic, and these include a rewriting of the previously predictable seasonal rulebook for housing market activity and prices.
“Rather than just a release of existing pent-up demand due to the suspension of the housing market during lockdown, there’s an added additional demand due to changed housing priorities experience of lockdown.
“Patience will be required, especially layer of people’s after the with some lenders limiting their product ranges due to capacity constraints in their ability to process mortgages.”