April Fools Day was no joke for some landlords, as they rushed their buy to let property purchases through to complete by the end of March, in order to beat the extra 3% stamp duty George Osborne was imposing on second homes after the 31st March 2016. Speaking to fellow property professionals in Nottingham we have all noticed that following the increase in sales going through in March, demand to buy in April and May from landlords has eased.
Then we have the Brexit issue, which is also having a tempering effect on the Nottingham property market and whilst an exit will have an effect, it won’t be the end of the world as some commentators are suggesting. In a previous article, I wrote about the growth rate of Nottingham property values and whilst the rate of growth is slowing, Nottingham property values are still 5% higher year on year. Albeit the growth rate month on month has started to moderate when compared to the heady days of 2014 and 2015. Interestingly a very recent members survey of the Royal Institution of Chartered Surveyors states that only 17% of members believed property values would increase over the next Quarter compared to 44% at the end of 2015.
In the NG2 postcode, which mainly comprises of City Centre, Sneinton, The Meadows and West Bridgford there were 332 properties for sale in December. In January, February and March, 418 properties came onto the market in the postcode district, meaning by end of the first Quarter, there were 419 properties available for homeowners and landlords alike to buy in NG2.These figures are mirrored in neighboring postcodes throughout the Nottingham area.
I believe this easing of the Nottingham property market is a good thing, as investment landlords won’t have to pay over the odds to secure a property because of the reduced competition. You would expect this easing to be bad news for the 126,457 Nottingham homeowners but nothing could be further from the truth. The majority of homeowners that move, move up market (i.e. from a flat to terrace/town house, then a semi and then detached), so whilst last year you will have achieved an excellent figure for your property, you will have had to have pay an even higher price to secure the one you wanted to buy. This illustrates the swings and roundabouts of the Nottingham Property Market!
However, all the signals suggest that whatever the aftermath of the approaching EU referendum, in the long term the disparity between demand for Nottingham property and the supply will still exercise a sturdy and definitive influence on the Nottingham property market. It would surprise me that if by 2021, whichever way we vote in late June, assuming we don’t have another credit crunch or issues like a major world conflict, property prices will be between 18% to 23% higher than they are today.
For my advice and tips on the Nottingham property market please email me on Jaclyn.bartlett@centrickproperty.co.uk
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