Nottingham Letting Agent Property Blog
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Property Prices See Their Biggest Increase for Q1 since 2004
Property prices have risen by 4.9% since the beginning of the year, and according to Rightmove this is the largest Q1 increase since 2004. House prices increased by an average of 1.6% in March to reach £236,939. Prices rose in the majority of England and Wales, with East Anglia enjoying the largest monthly increase of 3.9%, while Yorkshire and Humberside saw prices increase by 3.3%. There was also a 16% increase in the number of people looking for a new property, and experts are hopeful this year could see a more robust property market.
However there are still concerns that this jump in prices could prove to be temporary once the stamp duty holiday for first-time buyers ends on March 24. Property prices for the typical first-time buyer have increased by an average of £5,000 during the last year. With many struggling to save up the necessary deposit, the end of the stamp duty holiday could prove to be too much. The recent increase in the number of first-time buyers has also affected the rental market, as the cost of renting a property fell in February due to more tenants rushing to buy property before the end of this month.
There are already signs that the cost of mortgages is increasing, and mortgage lending is decreasing which should underpin tenant demand in the longer term. This would be good news for Nottingham letting agents and landlords, as apparently the average monthly rent fell by 2.2% in the East Midlands last month, which was the biggest price change in the country. Only the South-West, Wales and the North East saw slight monthly increases.