Heavy Rain Shower
Added on: 18th January, 2017 by Martin_31550
Situated in the heart of the East Midlands and resting on the border of national forestry, itís no
surprise that Leicester has become such a hub for budding real estate investors.
How much have housing market trends changed?
As expected, one of the biggest changes to Leicesterís housing market has been the price. In fact, the overall housing market has increased in price by an average of 249% since January 1996 to January 2017. On average, a property purchase within Leicester today will be 3 times more expensive than it was 20 years ago.
When you look at the numbers, it lends a great deal of perspective to just how much of an in-demand commodity property has become.
Despite rising competition in other cities, the 11% house price boom in 2014 was sufficient enough to put Leicester in the top 5 for housing price growth in the country. Average housing prices moved from £152,000 to just shy of £169,000, a jump big enough to place it 4th, falling just behind Manchester, Brighton and London.
Where have the changes happened?
The real estate housing sales market hasnít been the only place to see an uptake in trade. As housing prices have increased, the cityís rental market has stepped up to offer housing to those unable or unwilling to spend out.
The overall uptake in demand for rental properties in the popular East-Midlands city, however, led to a significant surge in supply pricing. Between 2013 and 2014 alone, the average rental price per calendar month jumped from £421 to 611, marking a 45% increase overall.
Astonishingly, the jump in prices that year left Leicester standing at the top of the UK growth market, with the popular West-London borough of Southall trailing behind in second place at 38% growth.
Why has the real estate market shifted?
Over the past 10 years, the marketís requirements have moved dramatically, with Leicester builders and buyers alike having to shift their stance.
UK real estate professionals share common opinions as to why the Leicester market has shown such a boost in popularity. As the criteria for first-time buyers looking to get a mortgage continues to tighten, the rental market presents itself as a much more affordable option.
This can be seen in the trend in this graph, where more affordable property types such as flats have increased in popularity significantly over the past 20 years.
Compared to detached housing which has seen an uptake of 75%, flats have soared by 233% Overall.
Additionally, the increasing flexibility of employment has meant that not all people have to live within the city they work. With the added ability to work from home for most of the week, many professionals may choose to simply rent a property within the city to make travel more Convenient.
With rental regulations in 2017 set to be more stringent, perhaps more people will move from the rental market to the real estate market. Government grants for builders should also see more affordable properties being constructed.