Our latest research has looked at where in the East Midlands is leading the region’s high rate of price growth, currently the largest in the UK at 7% annually.
Using Land Registry data, we calculated the percentage growth across all areas in the region to show where enjoyed the highest increases in 2017 and has had the biggest contribution to a flourishing East Midlands property market.
Northamptonshire (8.3%), Leicestershire (8.6%) and Nottinghamshire (6.2%) are the counties that dominate the top ten for price growth across the East Midlands. Both Oadby & Wigston and Hinckley & Bosworth in Leicestershire rose by 13.2% with average price tags of £213,268 and £211,894, respectively. Only two other areas in the whole nation have seen higher price growth – Swale in Kent (15.5%) and West Somerset (13.4%).
The next two highest growth areas in the East Midlands are in Northamptonshire: East Northamptonshire (11.7%) and Corby (10.9%). Nottinghamshire’s Newark & Sherwood (10.7%) and City of Nottingham (10%) are closely followed by Northamptonshire’s Daventry (10%) as the other areas driving price growth in the East Midlands, all enjoying double-digit annual increases.
Leicestershire’s Harborough and Blaby both grew by 9.7% last year, while South Northamptonshire jumped by 8.6%.
The East Midlands continues to attract high levels of buyer demand due to an affordable cost of housing averaging £184,544. While the Brexit vote and snap election have seen market uncertainty plague large parts of the country, the East Midlands more affordable price of property has seen the region flourish compared to other over-inflated regions such as London.
In addition, the average price for a property in this region is well below the English and UK average, making it an affordable option for first-time buyers.
In all of the East Midlands, only Bolsover in Derbyshire and Rutland dived into the negative at -0.2% and -2.2%, respectively.
With England’s average price growth at 4.7%, five regions in the country failed to meet the average: the South East (4.6%), the North West (3.9%), Yorkshire and Humber (3.3%) and the North East (2.4%). Not surprisingly, London is at the bottom of this list at 2.1% after a year of uncertainty.
There’s no doubting that 2017 was a tough year for the UK property market, but while some areas saw a drastic decline in price growth, others fared far better.
The East Midlands has seen a well above average rate of growth, largely driven by a multitude of areas with much more affordable prices tags. In addition, both buyers and sellers in these markets are less deterred by a cooling rate of price growth, as the onus of homeownership isn’t focused so heavily on making a profit from your property sale, as it is in London for example.
Ironically this continued level of market activity on each side of the fence has ensured the prices in the East Midlands have remained robust and have kept climbing at a greater rate than other UK regions.
The region is also perfectly situated to be in close proximity to London and other large cities and as a result, attracts buyers from all over the Midlands which in turn brings industry and money into the area. With such affordable housing prices, good commuter links and career prospects, this region has become a hotspot for UK homebuyers.Russell Quirk