In January 2023, the Nottingham Post published an article on the state of the city’s property market according to local estate agents. The verdict: the market is “very strong”. Despite all the headwinds that have blown against the housing market in the UK, Nottingham remains an affordable and lucrative option for homebuyers and real estate investors alike. So why is Nottingham faring so well?
Before we answer that question, here’s some background about the overall UK property market. As you probably know, the continued cost of living crisis has presented trouble for people up and down the country. Due to rising inflation, everything has gone up in price. And mortgages are no exception. After years of low mortgage interest rates, the UK is experiencing highs not seen since the aftermath of the 2007-08 financial crisis. As a result, many people are holding back from buying property. And in 2022, house prices decreased for the first time in years in many parts of the UK, which indicates reduced demand from buyers.
But standing firm above the turbulence below is Nottingham. A city that’s as affordable as it is green and exciting. Since 2012, house prices here have almost doubled. And in 2023, housing demand is still strong for several reasons.
Why is there a strong demand for housing in Nottingham?
For one, Nottingham presents excellent opportunities for real estate investors. Thanks to two acclaimed universities, there’s a massive student population. Most of the 60,000+ students need private accommodation sometime during their stay. And, as it stands, there aren’t enough beds on the market for all of them. This shows how strong the housing demand is amongst this demographic. Investors are well aware of this. Seeing that rental yields are some of the best in the country in student-heavy areas like Lenton and Arboretum, investors are quick to snap up properties as soon as they hit the property market.
On top of that, homebuyers are drawn to the affordability of Nottingham. Across the board, Nottingham is cheap and cheerful. Take house prices. The average property in Nottingham postcodes is priced at just £242,000, some £120,000 less than the England & Wales average. Nottingham’s affordability is pronounced by the low costs for utilities, childcare, rent, and much more. Cost of living tracker Nubeo.com identifies Nottingham as being 16.5% less expensive than London.
What else is influencing the demand for housing in Nottingham? There are too many factors to cover in today’s blog post. But among them is the array of excellent schools, both state and privately-owned, as well as a strong local economy – Nottingham is the 7th largest metropolitan economy in the UK, which feeds into a healthy job market. Its central location and transport links make it a great location for commuters. Underpinning the housing demand is the population growth within Nottingham and the wider areas. Already up 0.88% from 2022, the United Nations projects the 807,000-strong population to rise to 876,000 by 2035.
To put the demand for Nottingham real estate into perspective, the average property takes just 99 days to sell on the open market as of April 2023. What’s more, 3-bedroom houses are the fastest to sell, taking just 81 days. This suggests Nottingham is a popular location for family homebuyers and has strong competition from buyers in general.
Tips for homebuyers and sellers in the current Nottingham property market
Whether you’re looking to buy or sell in Nottingham, the current market presents unique challenges.
If you’re looking to buy in Nottingham, you should consult a local real estate agent with knowledge of the city. Although you can discover plenty by doing your own research, a local estate agent will help you stay up-to-date with the property market and advise you on houses and areas that would suit your needs.
But before you even get to that point, make sure you’ve saved for a deposit and worked on your credit score. This can be a big help when it comes to securing a mortgage. As we mentioned, mortgage rates are higher than they’ve been for many years. It’s creating a challenge for first-time buyers in particular, but don’t let it put you off trying to buy a home.
There are many options available to you, including government support. For example, there’s a mortgage guarantee scheme in place specifically for first-time buyers. It can allow you to buy a home with just a 5% deposit. Shared ownership is another option, while Lifetime and Help-to-buy ISAs can also be helpful. If you’re a first-time buyer, remember that you will be exempt from stamp duty if your property costs less than £425,000.
Getting pre-approved for a mortgage is another way to increase your chances of buying a property. Not only will it save you time and potentially get you over the closing line quicker, but it’ll also allow you to narrow your search to only homes you can afford. It shows to sellers that you’ve got all your finances in order and there’s unlikely to be any hiccups if they agree to sell to you. When it comes to buying a home in an in-demand area like Nottingham, you have to be quick off the mark when you see a property that ticks all your boxes. Mortgage pre-approval allows you to do just that.
Selling real estate in Nottingham is another proposition entirely. In an ideal world, we’d all like to take advantage of the housing demand and get a quick and seamless sale. But many things go into making that happen. For one, you should get an accurate valuation of your house. It doesn’t hurt to get many opinions on this. Then you should think about your strategy for pricing your house. Are you looking for a quick sale? If so, you may want to price your house lower than the valuation. If you have time to spare you can also do this to encourage a bidding war. Or you can put it on the property market above the valuation price and try to attract a buyer. If none comes, you can slowly slash the price.
Another way to boost your chances of selling in Nottingham is to stage your home. The art of staging involves taking steps to enhance the appeal of your home to as many potential buyers as possible. Generally, it’ll involve upgrading key areas within the property and removing the personalised aspects that make it unique to you. This gives buyers the impression that they could live there and reshape it to their preferences.
Marketing your house effectively is another important component of selling a house. Getting to grips with the local housing market, taking high-quality photographs, and listing your property in the right places with compelling descriptions are all facets of marketing your property.
If for any reason you’ve had a hard time selling your house in Nottingham, consider another option. Cash house buyers can make selling your house a piece of cake. It doesn’t matter where it is or what it’s valued at, with We Buy Any Home you can sell your house fast with no hassle.
How could the Nottingham property market look in the future?
There’s a lot to be optimistic about when it comes to the future of Nottingham’s housing market. Although the market slowed throughout the UK in late 2022, it was only a minor dip. The bank rate is indeed up to a high not seen for over a decade, causing mortgage interest rates to hike. And as such, mortgage approval rates and house viewings are down in the UK.
But, while it’s impossible to predict the future of the property market with absolute certainty, most experts see this as a correction in the market after years of unrelenting boom which saw record highs in house prices throughout the UK. Indeed, many house price indexes now show a return to growth in 2023, albeit by small margins.
The wider uncertainty about the property market has not had a noticeable impact on Nottingham. By most accounts, the city is as strong as ever in terms of housing demand from homebuyers, real estate investors and the rental market. Considering Nottingham’s strong economic growth of 2.5% year-on-year and the city’s regeneration plans, it’s hard to see its appeal to buyers disappearing anytime soon.