Property prices are now growing faster in Nottingham than any other UK city according to Hometrack’s 2019 report.
You’ve saved up a deposit for a BTL property and now you’re assessing which cities offer the best options for your next property purchase.
If you’re based in the South East, where property prices are notoriously expensive, you may need to look further afield. You’ve heard that Manchester, Liverpool and Leeds are hot places to invest but the amount of options can feel overwhelming and the prices in some of the newly built developments can be high.
One option we feel you should be seriously considering if you haven’t already, is our home city of Nottingham and in this article I’ll explain some of the reasons why…
5% Capital Appreciation in 2019
Hometrack are arguably the leading property market analysts and are a respected source for many media outlets. In their annual end of year report in December 2019, they stated that Nottingham was the strongest performing city in terms of price growth within the entire UK.
The annual growth of 5.2% per year outstripped 64 other UK cities.
According to Hometrack, it doesn’t stop there either. Investors buying into the Nottingham property market can expect to see this strong growth continue over the coming year.
“Nottingham, Edinburgh and Glasgow rank as the top three cities with the strongest prospects for 2020” – Hometrack 2019
From an agent’s perspective, I’ve seen property prices grow steadily over the past few years. We’ve consistently driven home the message that Nottingham is a great place for our investors to buy although the growth in property prices and rental prices has surprised us all.
For those of you interested in reading there report, you can access it by following this link – Hometrack 2019 Report
Lack of Supply is Pushing Rents Up
Akin to the rapid house prices seen in the city over the past 12 months, rental prices were also some of the fastest increasing throughout the entire UK.
This increase has undoubtedly been driven by the chronic lack of new residential developments in the city centre and suburban areas.
The majority of the sites acquired over the past couple of years are targeting the student market meaning developers are overlooking the needs of residents living within the city.
Even from our perspective, we’ve seen rents increase on our own managed properties. A block of 2 bedroom apartments just outside the city centre was generating £650 PCM per apartment a couple of years ago but is now fetching around £800 PCM per unit.
This is not an ideal situation for renters working within the city, but is is encouraging for property owners and those seeking to buy investment properties and capitalise on these market conditions.
Prices are Still Relatively Low!
Our mantra has always been to look for bargain deals for our clients and naturally the majority of our property stock is priced below £150,000.
Another reason why Nottingham is appealing is the fact that properties here are still relatively cheap to buy. The average sales price is currently £159,600, which is cheaper than many major cities in the Midlands and North.
Average prices in Manchester (£173,700), Birmingham (£167,500), Leicester (£181,000) and Leeds (£169,100) are all substantially higher, especially in the more fashionable areas of those cities. You’re going to struggle to get a 2 bed apartment for under £200k in Manchester these days which is going to hamper the level of returns you can expect to see.
Nottingham is an accessible market for many buyers, even for those without substantial deposits and we routinely seek well priced opportunities for our clients.
With prices still low there is plenty of room for growth so now is the perfect time to buy and make the most of it whilst you can!
Once in a Generation Redevelopment
For those of you who have arrived by train in the past 12 months, it’s impossible to miss the sheer amount of construction work taking place in the southern area of the city centre.
This large scale development has had a knock on effect for the local area, with many smaller businesses thriving. Property developers have looked to restore and re-purpose many buildings in the area on the back of growing confidence and the south side of the city centre is really starting to take shape.
“Nottingham is embarking on an intense period of economic regeneration, with a £250m redevelopment of the ‘Southern Gateway’ into the city centre underway; encompassing a remodelled shopping complex and new ‘City Hub’ college campus. The £150 million redevelopment of the Broadmarsh shopping centre will create new shops, restaurants and leisure facilities. These will revolutionise the entry into the city from the railway station, an iconic piece of Edwardian Baroque Revival “
Key Investment Facts:
- Economy worth £12.8bn
- £800m infrastructure development underway
- Access to workforce of 1.1m people
- Top 10 city for growth
- 2 world class universities
- Youngest workforce of the core cities
- Number 1 for graduate employers
Source: Nottingham City Council
Our latest Project
Prime Property Agents are set to release our next investment opportunity within the city, with an exclusive deal to offer 23 apartments to our investors.
Prices starting from £110,000 will mean that you can get involved with a relatively low up front deposit if opting to purchase with a BTL mortgage.
We expect that our clients will see rental yields in the region of 7%, with strong growth predicted for those seeking to hold the properties as long term investments.
Our in house sales and lettings team will also be on hand to manage this investment on your behalf, meaning that even if you’re based several hundreds of miles away or even overseas, you’ll be safe in the knowledge that a trusted agent has been appointed to manage the property on your behalf.
Jack Holland Prime Property Agents