Thinking about buying or selling a property in Nottingham in 2023? Then you might be wondering how the property market is faring. While the cost of living crisis shows no sign of letting up, the property market could be about to take a turn. In this post, we’ll look at how Nottingham house prices have changed in recent years and what the future could hold for the historic city.
What was the average property price in Nottingham last year?
Nottingham house prices, like virtually everywhere in the UK, were steadily rising for many years. But 2021 threw a spanner in the works. Nottingham saw a 17.1% increase in house prices that year, taking the average price paid to approximately £200,000.
Why did this happen? For one, the pandemic increased the demand for large houses. Many people set their sights on spacious living areas to accommodate home-working. Plus, gardens were sought after amid the threat of continued lockdowns. City flats also lost their appeal in part due to rising rent costs.
What’s more, mortgage rates were at their lowest since the late 90s, and the government offered big savings on stamp duty. Many saw this as a great opportunity to get on the property ladder. As a result, house prices skyrocketed all over the UK.
But now the tide might be turning in Nottingham. HM Land Registry has shown that the Nottingham market is declining for the first time in years. As of June 2022, the average price paid for a Nottingham property was £198,080, down 0.8% from the previous year. While nowhere close to the low prices of 10 or even 5 years ago, it could indicate what’s to come in the future.
How does the Nottingham housing market compare with nearby Derby and Leicester?
Before we assess how the market could change in Nottingham, let’s take a look at house prices in two neighbouring cities. According to HM Land Registry, the average price paid for a property in Leicester is £232,183 as of June 2022, which is a 0.5% drop from the previous year. The same report puts the average price paid for Derby properties at £205,958, a 2.8% reduction.
With the Nottingham figure at £198,080, the city could provide excellent value for buyers. The big city atmosphere, plentiful green spaces, and convenient transport links only add to Nottingham’s appeal.
Will the Nottingham property market be changing in 2023?
It’s impossible to predict exactly what will happen to the Nottingham property market in 2023. That said, all the signs are pointing towards a cooling off of house prices this year.
The building society Nationwide, analysing data from its house price index, is predicting a 5% decrease in house prices in 2023. Estate agents Savills are going a step further. They predict a 10% drop in the UK this year.
A whole host of other house price indexes and property experts are predicting at least a slight headwind for the housing market. After years of rising prices, why are experts predicting a potential downturn?
As the cynical old saying goes, no good thing lasts forever. Sadly, it’s usually true in economics. With the Bank of England setting its base rate at 4% in an effort to tackle inflation, historically low mortgage rates are now a thing of the past.
Currently, the cost of living crisis is making it hard for people to afford mortgages and save for deposits, especially if they’re already renting. These factors and more are contributing to a slowing down of the market. Simply put, there seems to be less demand for properties. But it is unlikely that the market will crash entirely.
So what does this all mean for you if you’re looking to buy or sell a property in Nottingham this year?
Selling in Nottingham
With house prices likely to decline, you might be tempted to list your property immediately so you can get the best price possible. But there’s no guarantee of a quick sale.
The time it will take to sell on the open market will likely depend on where you live in Nottingham. Are you looking to sell in a hot spot like West Bridgford, Beeston, and Stapleford? Then you probably won’t be waiting long, despite the state of the economy. The same goes for areas with student properties because they’re attractive to investors. Demand for properties in these popular areas isn’t likely to change.
If you own a property in an area where there’s low demand, don’t worry. The open market isn’t your only option. Consider a cash house buyer for a quick and stress-free sale without paying a penny of your own money.
Buying in Nottingham
The likely downturn in the UK’s housing market could favour motivated buyers. As fewer people can afford mortgage costs, the competition for property has decreased. You just might be able to find a great deal on your dream home.
As it’s impossible to say exactly what will happen with the market, it could be wise to see how things unfold as the year progresses. When doing your research, only trust reputable sources like HM Land Registry. And be aware that the latest data on the market can take time to come out.
As it stands, Nottingham house prices are no longer rising and most experts agree that the UK housing market looks set to take a hit this year. This presents a variety of benefits and drawbacks for people who are entering the market. Whether you’re looking to buy or sell in Nottingham, always take your time before deciding your next move.