East Midlands Leads the Way for Property Prices

If you want to achieve the best price for your Leicester property, it could be the ideal time to put it on the market and enlist the help of the Keywest team.

New figures show that average property prices are now close to a record high, and the Midlands have been influential in driving this growth. The new Rightmove data shows that the average property asking price in March reach £310,108 in England and Wales. This was a £3,877, or 1.3 per cent, increase on the previous month and is just £363 below the £310,471 record high seen in June 2016.

Rightmove claims that this price growth is being led by the Midlands rather than by the London commuter belt, and some areas are experiencing record sales and sealed bids for in-demand properties. Rightmove adds that the latest price rises indicate ‘continuing’ market resilience, strong buyer demand when properties are priced correctly and a shortage of suitable properties for sale in many areas.

The month-on-month increase reflects a similar rise experienced last march, although in 2016 demand was being influenced by investors in buy-to-let properties attempting to complete purchases before the rise in stamp duty was imposed on April 1.

Throughout the UK, prices are also rising year on year, although not at such a rapid rate as experienced in 2016. The annual increase this year has been recorded at 2.3 per cent, while the 2016 figures showed an annual rise of 7.6 per cent.

The East Midlands saw the biggest regional increase annually with a record high of £200,620 being reached thanks to a 5.7 per cent jump in asking prices. The West Midlands saw the second-highest growth rate, recording a 4.2 per cent rise and an average asking price of £212,798.

Just two areas saw average asking prices fall. In Wales, average asking prices fell by 0.6 per cent to reach £173,073, and the North East saw a drop of 1.1 per cent and an average of £146,796.

Among the areas recording annual increases, London experienced the smallest growth. Prices went up by just 0.9 per cent, reaching an average of £649,772.

Rightmove director Miles Shipside said that the more affluent southern commuter belt was no longer setting the pace of growth – nor was the cheaper North and its investors aiming to cash in on high yields for buy-to-let properties. Instead, the Midlands ‘fundamentals’ are at ‘the fore’ as other areas run out of ‘steam and froth’, he said.

Price rises in the Midlands also look set to continue, with some experts predicting further increases of between four and five per cent this year – a rate that should continue to outpace many other areas in England and Wales.

If the time is right to allow Keywest to help you secure a great price for your property, get in touch with a member of the team today – call 01162 544 555.