House prices are now at an all-time high in Leicester, eclipsing the heady days of July 2007 with some ease. So, 10 years on from the “110% mortgage” fuelled phenomenon, what is it that is driving prices so high in most of Leicester’s postcode districts? Quite simply, supply and demand is still massively out of sync with properties being snapped up within a matter of days, sometimes a matter of hours, of hitting the market. The areas benefitting mostly from this housing stock shortage seem to be the residential three bed semi estates such as Braunstone and New Parks. Prices in these areas have soared beyond all estimates with three bedroom ex-council semis hitting the heights of £160,000 and more, where previously they have been in and around £110,000-£120,000 just a matter of 18 months ago.
Consequently the terraced market has also shown stubbornness in the face of the perceived “Brexit adversity”, with prices around Narborough Road, Fosse Road and the Universities shooting up at a rate of knots, again beyond the previous peaks in 2007. It is not beyond the realms of possibility that terraced housing in a buy-to-let stomping ground such as Newfoundpool could surpass the £150,000 mark in the coming months with some properties in the area currently arriving to the market at £140,000 and having SOLD boards planted in the ground within just a few days.
So……as the UK housing market outside of London continues to defy all property experts expectations through the start of 2017, it remains to be seen how long this spiralling pricing can continue. If only we knew!