Nottingham Residential Property Market comment May 2014

In general, despite two Bank Holidays and school half-term holidays, May has been a busy month with increased activity in both Lettings & Homesales.

After a fairly sluggish start to the year, the rental market has now had two strong months on the bounce, which is  soaking-up any over-supply that built-up during a quiet February & March. Rental prices are creeping up a little in a few areas, but in general there isn’t a lot of movement in price year-on-year.

Over the past 3 or 4 years, June has been one of the better months of the year and normally kicks-off the rush into the summer, so we are anticipating a busy next few weeks as people try to get their new homes organised before their holidays.

In line with national media coverage, Home sales are dramatically improved compared to a few years ago. That said, the property bubble that is the current media obsession, is not particularly the case in and around Nottingham. Prices are starting to rise in most areas, but in many the rise is very modest, and it still leaves the property value lagging far behind where it would have been in 2007.

There are a far greater number of buyers in the market, but they are being stifled by a shortage of supply.  Inevitably, the shortage is meaning that sellers can ask more for what they are trying to sell, but we are still finding that buyers aren’t getting carried away and over-priced properties still aren’t selling.

Jonathan Detheridge from GO Property Services comments "In Nottingham, there is still a shortage of core first time buyers coming to the market, which is resulting in the prices of some traditional terraced properties and small flats still being depressed. Hopefully, as the economy stabilses and the job market continues to improve, more first time buyers will have the confidence to return to the market". 


GO Property Services Ltd sell, let & manage property across Nottinghamshire. The company is independent & in 2013 celebrated our 10 year anniversary. We are licensed by ARLA & the NAEA, and offer a high quality service that is competitively priced.

Thursday May 15th sees the return of the East Midlands Landlords & Letting Agents EXPO to East Midlands Conference Centre (on the Nottingham University Campus) 

The EXPO brings landlords, agents and trade suppliers from across the East Midlands together under one roof for one day in this FREE event. After a staggering response to the 1st EXPO in 2013, the show promises to be even bigger for 2014.

On the day there will be over 70 exhibitors, FREE prize draws, a live property auction from Graham Penny, a networking lunch, and chance to put questions to local authorities across the region.

GO Property Services will be exhibiting with ARLA again this year we'll be running a competition to win a tenant! Yes, thats right, not an ipad, or a gadget for the house that you dont really need, you can win a shiny new tenant!* 

Organised by East Midlands Property Owners (EMPO) the regions largest Landlords Association, the EXPO is a great opportunity to keep up to date with developments in the private rented sector.

(*In the interests of clarity: In our FREE to enter competion the winner will recieve a voucher entitling them to try our highly commended Comprehensive Tenant Placement service completely free of charge. T's & C's will obviously apply. To find out more, come and see us on stand 43 & 44)

Find out more about the EXPO here

EXPO Banner 2014

The government recently announced it was pulling forward the second stage of its Help to Buy scheme. “The scheme was launched last week, and we believe it will be great help to 1st time buyers that have all but been excluded from home-ownership since the credit crunch in 2008” commented Phil Wardle from GO Property Services.

Even though property sales are beginning to recover, there is still a dearth of first time buyers that traditionally form a sizable part of a healthy housing market. Interest in the scheme is already high, and banks participating in it have reported an increase in appointments from buyers wanting to discuss mortgage applications. It’s anticipated that most of those taking advantage of this scheme will be first time buyers, but it is available to anyone wanting to move up the property ladder as it can be used to purchase properties up to £600,000 in value. However the scheme cannot be used to buy a second home.

Basically, the process of applying for a mortgage will be exactly the same as before, and applicants will still need all the relevant documents to prove eligibility for the loan. The main difference is that a 5% deposit will be sufficient to secure a mortgage at competitive interest rates. Before, buyers with small deposits had been excluded from the market completely, or had been penalised with higher interest rates.

The government’s part in this is to guarantee the mortgage. Anyone interested in Help to Buy should talk to GO Property Services today to see if we can help. It is anticipated that Help to Buy will really come to the fore in the New Year, so we’re particularly interested in speaking to vendors of starter homes who may now find that they could be in a position to sell.

If you’re in the market to buy, or sell, call Phil Wardle at GO Property Services today on 0115 9629770, or email This email address is being protected from spambots. You need JavaScript enabled to view it..

Bank of England data reports a 20% jump in mortgage approvals in 2013. Home loans approved in 2013 grew to 734,000, up from £612,000 in 2012. The mortgage growth data mirrors sentiment across the country, which is finally starting to see growth in the number of For Sale boards turning to Sold after several years in the doldrums.

“In Nottingham, 2013 saw a marked increase in completions compared to previous years and there was a noticeable increase in enquiries, particularly during the 2nd half of the year. The government backed Help to Buy scheme certainly increased interest and the great news is that it has started to bring 1st time buyers back to the market after quite a lengthy absence” comments Jonathan Detheridge from GO Property Services.

2014 promises to be an interesting year with unemployment dropping and the economy showing solid signs of recovery its anticipated that approvals will continue to grow.

See the full story here  

GO Property Services Ltd sell, let & manage property across Nottinghamshire. The company is independent & in 2013 celebrated our 10 year anniversary. We are licensed by ARLA & the NAEA, and offer a high quality service that is competitively priced.

 

If you are a Nottingham landlord then you will already have heard quite a bit about the introduction of new House in Multiple Occupation (HMO) regulations. The casual bystander would probably assume anything to eliminate rogue landlords would be a good thing, but a closer look makes it easy to see why just about every landlord in the city is against this scheme.
According to the council, the scheme has been introduced to try to improve the quality of the private rental sector (PRS) in Nottingham, in particular for HMOs. The PRS accounts for 23% of homes within the city, and HMOs make up around a quarter of that figure. This is quite a large percentage, and even though the council acknowledges there are many well maintained homes operated by excellent landlords within this sector, it feels some homes are badly managed, have poor amenities and are overcrowded. Instead of tackling the few landlords at fault, it has decided to penalise the law-abiding majority who work hard to provide tenants with decent housing.
Three storey HMOs with more than five tenants have been licensed since 2006, and this new scheme will include most HMOs that are covered under the 2004 Housing Act. It is estimated that the scheme will affect approximately 3,200 HMOs in areas including Arboretum, Lenton, Radford, Hyson Green, Sneinton and The Meadows.
Landlords affected by this scheme are vowing to fight it. The council claimed most people were in favour of it, but dissenters point out that only 650 people responded with their thoughts on the scheme. Landlords will have to pay a one-off fee of nearly £1000 for the scheme which comes into force on 1st January next year, and which is due to run for five years.
It is easy to see why landlords in Nottingham are up in arms about having to pay another fee, not to mention the hassle that will inevitably be involved with the whole process.
Jonathan Detheridge of GO Property Services comments:
“Without wishing to seem too skeptical, this extension to licensing looks far more about raising revenue and employing more bureaucrats than it is about raising housing standards.  Nottingham City Council are inherently anti-landlord and are completely deluded about the sort of people that will want to rent the vacant houses their policies are creating. You have to question the council’s motives when rather than tackle rogue landlords using the powers they already have, the council is instead choosing to concentrate its efforts on introducing yet more lucrative red tape. With rent rises already affecting many households in the city, this further increase will not help”