Over the last two years house prices in the Leicestershire area, have risen steadfastly, giving the county the title of fastest growing property prices in the UK in 2018. Letting prices were also up by approximately 3% in the same period.
Buying property has always been seen by many as a good thing. It’s an investment and even a chance to get on the property market for first-time buyers. It’s also good for those downsizing as they may release equity when they sell their larger property, to help with retirement funds.
But, spare a thought for others when house prices continue to rise. First-time buyers struggle to raise the deposit to be able to purchase their first home. People looking at the next rung of the ladder or upsizing can sometimes find that they can’t afford the next level, as salaries do not rise as quickly as house prices. Renters also feel the pinch when property prices rise, as rents also rise so Landlords can cover their mortgage re-payments.
Rising property prices don’t benefit everyone!
Since the year 2000 it is estimated that property prices have risen by an astronomical 268.7% in Leicestershire according to a report on the LeicesterLive website (link below), and in December 2018 Zoopla reported that Leicester was named as ‘The best city to invest in for property’ and had the best year-on-year growth for any major city in the UK in 2018
According to ‘Rightmove’ they have analysed the property price averages for the area and claimed:
‘Most of the sales in Leicestershire over the past year were detached properties which on average sold for £337,699. Semi-detached properties had an average sold price of £204,965 and terraced properties averaged at £169,642.
Leicestershire, with an overall average price of £239,015 was more expensive than nearby Nottinghamshire (£195,246), but was cheaper than Rutland (£321,587) and Northamptonshire (£258,829). The most expensive area within Leicestershire was Swithland (£736,200) and the cheapest was Aylestone (£164,655).
In the past year house prices in Leicestershire were 5% up on the year before and 13% up on 2016 when they averaged at £211,743.’
Only time will tell if this trend continues, particularly as the country is set for change due to Brexit, which may bring political, social and economic uncertainty.
Don’t forget a house is a home not just an investment. It’s where we make memories, bring up our families and make our lives together!