The battle of the postcodes in East Derby.

I was asked last week if postcodes make a difference to property values. Well in swanky West London, the difference between SW3 and SW10 can make values drop or rise by hundreds of thousands of pounds.

However, in our little city of Derby, we don’t have many Russian Oligarchs and Saudi Prince’s buying our properties. Despite that, after doing some investigating, I did find out some interesting information. I would like to start with East Derby (I will look at other parts of the city in future articles). I found an amazing trend that I think will interest the people of East Derby as well as landlords and potential investors.

Over the last decade, property values have always risen in Allenton, Alvaston and Boulton Moor first (DE24), then they plateau allowing Chaddesden and Spondon (DE21) to catch up 18 months later. Then Allenton, Alvaston and Boulton Moor have another spurt, again leveling out and now we are half way through Chaddesden and Spondon catching up again. I have no idea why this happens, but I just know it does!!

Let me explain further. In 2008, property values in both areas were roughly 11.7%  lower than they are today, therefore they had plateaued. By the time we had got to 2010, Allenton, Alvaston and Boulton Moor (DE24) had risen by 3.3%; compared to 1.5% in DE21 (Chaddesden and Spondon) doesn’t sound much but it’s over twice the growth of the other!

Get to 2012, and Chaddesden and Spondon had caught up, increasing by 6.9% compared to Allenton, Alvaston and Boulton Moor’s growth of 3.7%. Since 2012 Allenton, Alvaston and Boulton Moor have had another spurt of 4.6%, compared to Chaddesden and Spondon’s  meagre 3%. I believe over the coming few years, Chaddesden and Spondon will have another spurt to catch up.

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. It really is down to local area knowledge and knowing what to look for in the figures and statistics that are available.

If you are a landlord, new or old, feel free to pop through the door of our offices on St James Street, call me on 07977 235545 or send me an email.

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