House prices ‘could plunge’ say experts
BUT AGENTS INSIST THAT CITY MARKET REMAINS STRONG
HOMEOWNERS in Nottinghamshire could see house prices plummet in the next few months as 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 property sold.
The list included hotspots for fall- ing house prices such as Cornwall, part of Wales and the Isle of Wight. Nottingham is tied for sixth place on the list alongside Worcestershire and Bedfordshire after the three areas experienced a 13 percent drop. Nearby, Leicestershire was also mentioned after it experienced a 12.5 percent decrease.
Some areas of Nottingham are still reading as “hot” on the list, includ- ing parts of Beeston (NG9), although the market is “cooling” Sneinton (NG2) was predicted to be “very hot” as it scored 60 degrees.
Similarly, the housing market in Eastwood also scored high with 50 degrees. Lenton was another area that remains high as it revealed a 56-degree score. Despite this, overall Nottinghamshire has still experi- enced a decrease of 13 percent. So what could this mean for those look- ing to get on the property ladder or looking to sell in the next year?
Paul Sweeney, director of Robert Ellis estate agents, said there had been “exceptional property growth” since the easing of lockdown in the summer of 2020. He feels 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 to 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 have gone up on average around 25 percent.
“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 percent 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 percent.
“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.”
Mr Sweeney said there had been an increase in people looking to buy in Nottingham, along with people coming into the area not just from other parts of he UK but overseas too. He added: “You always see hotspots 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.”