Savills researchers describe a price sensitive but active market in Nottinghamshire, Derbyshire and Leicestershire with London buyers showing keen interest in region.
Against the backdrop of pent-up demand and changing buyer needs, the housing market across the East Midlands has been busier than ever since it reopened, says Savills.
This was the message from local and national property experts, who presented analysis of the market to more than 70 local buyers and sellers at a virtual Home Truths event in Nottingham at the end of October.
Driven by changing buyer needs as a result of Covid-19, Savills Nottingham has seen a 67% increase in sales agreed compared to 2019, with 34% more viewings carried out - a figure that includes virtual viewings. Interestingly, 17% of people buying property through Savills Nottingham were from London and new buyer registrations were also up significantly (79%).
Ian Marriott, joint head of Savills residential sales at Savills Nottingham, explains: “In my thirty-plus years working in residential sales this is without doubt the busiest I have ever seen the housing market in the East Midlands. The 67% increase in sales agreed highlights just how buoyant things have been since the market reopened in May, but what also illustrates this is that for 50% of the properties we have either sold or agreed sales for we have received multiple offers.
“The demand for property has actually been very good and this is testament to the popularity of the region, underlined by a rise of 42% in London postcodes registering with us in September. A hotspot for buyers, Nottinghamshire, Derbyshire and Leicestershire has so much to offer and still represents excellent value for money.”
During the webinar, it was revealed that the most active market in the region is between £600,000 and £1.5m, with market activity in the East Midlands up by a staggering 49% between June and September of this year.
Savills residential research analyst, Faisal Choudhry, is a leading commentator on the UK housing market. Speaking at the virtual event, he said that accessible village and countryside locations, where prices have lagged behind their urban areas in the past decade, have seen a significant uptick in demand, particularly from town and city dwellers. Consequently, 53% of respondents to a recent Savills survey were more attracted to a countryside location.
Faisal comments: “The key findings from our survey of buyers and sellers showed that for about two-thirds of them, gardens or outdoor space had become more important. This doesn’t just mean their own private garden. It also means access to outdoor spaces, like parks or resident’s gardens. This puts some towns and cities across the East Midlands at an advantage.
“According to data provider Twenty Ci, who monitor property portals such as Rightmove and Zoopla, the number of agreed sales and new instructions in East Midlands between July and September was 49% and 23% higher, respectively, compared to the same period last year. At a local level, nearly every Local Authority in the East Midlands saw a rise in agreed sales, with the market recovery led by hotspots such as Melton in Leicestershire, Bassetlaw in Nottinghamshire and the Derbyshire Dales.”
The research also highlighted that price growth has remained modest despite the increase in sales since the market reopened.
Faisal says: “House price growth at county level remains strong, led by areas surrounding the cities, including Southwell towards the north east of Nottingham, some of the villages between Nottingham and Leicester, the Vale of Belvoir towards the east of Nottingham, West Leicestershire and the mid and north Derbyshire area. Looking ahead in terms of house price growth, despite high demand levels, the market remains price sensitive.”
The Savills survey of buyers and sellers showed that 56% of respondents are prepared for house prices to fall in the next year. Yet over two-thirds anticipate price increases in the next five years, with 18% thinking they will rise by more than 10%.
House price performance
|
County |
Average price 12 months to Jun 2020 |
Annual growth |
|
Leicestershire |
£253,000 |
4.2% |
|
Derbyshire |
£211,000 |
3.5% |
|
Nottinghamshire |
£207,000 |
3.8% |
Source: Savills Research using Land Registry.
Further information
You can find the latest Savills Nottingham Home Truths webinar here.