Land registry recently released its figures for top performing areas across the country for annual property price increases, and it appears our home town of Wolverhampton is one of the top performers!
Wolverhampton is an area that is greatly misunderstood, most that live in the area will agree that it is a great place to live, and good value for money properties are available, however, some of the old reputations of the area stop people from outside the region considering it as a great option to invest in, which is a shame, as it is an opportunity many are overlooking, and this report demonstrates this.
Currently, the average asking price is around £106,000.00 and, according to the land registry, this is as a result of an annual price increase of 7.8%.
Here at our local branches we certainly have seen a massive increase in registering buyers and investors, predominantly after the general election earlier this year, and, in fact, the NAEA (National Association of Estate Agents) report a 10% increase in sales agreed in June of this year, which confirms this result is nationwide.
The reason for the upsurge in values though is, probably, more to do with supply and demand. The country is seeing a shortage of property stock, meaning less choice for buyers, which will naturally result in an increase in prices; also, this means that there are more people viewing each property when they become available, which we are finding is resulting in multiple offers for each property, before a sale is agreed.
Speaking to Sara Bailey a local Sales and Lettings Agent, “We are finding that buyers are now aware of the competition and in many cases scared to make low offers because they know they will get beaten, resulting in many more offers for the asking price than I have seen before in over 30 years in the industry!”
This is further accentuated by there just not being enough homes being built to meet the incoming and growing population, in fact, even if they started today, the government would not have enough time to solve the problem.
There is also a trend now for people to stay in their homes and make do and multi-generational families all living together, some only moving if they really have to and possibly then downsizing when the family move on and start their own homes. Others are extending and converting as a cheaper option than moving. I’m sure that, now the mortgage market is offering some great long fixed term deals too, this will encourage some buyers onto the property ladder.
Investment in Wolverhampton, with the ever growing i54 development, seems to have had a large impact on the City, drawing in ‘High-Tech’ specialists to the area creating some 8/900 jobs and, with the expanded road network, is an easy commute.
West Wolverhampton does really well with great priced family properties in Claregate, just on the border of the beautiful, and much sought after, Tettenhall; enabling people to live on the edge of that golden mile!
There is also great public transport available, which means it is easy for people to reach the other urban areas of Birmingham, Stafford, Walsall and Lichfield.
Wolverhampton boasts a buoyant rental market which really should encourage property investors to buy here; as with such great prices, landlords receive great rental yields and returns, and provide tenants with good quality long term homes and give support to the ‘Private Rental Sector’.