Property values fell by 0.4% in Derby

Property values in Derby fell by 0.4% in March. This follows several months of sluggish activity in the Derby property market in the run up to the Election, putting the average price of a property in Derby at £170,400, 3.7% higher than in March 2014. Despite the not so insignificant fall in March, the figures showed property values in Derby were still higher in the first quarter of 2015 than in the last quarter of 2014.

Interestingly, the Council of Mortgage Lenders and Estate Agent trade bodies over the last few months have reported seeing a fall in mortgage lending and enquiries from prospective homebuyers. This is important because it comes amid an overall fall in housing market activity in Derby. Data from the Land Registry state that completed house sales in Derby in the three months to January 2015, (the most up-to-date figures available) fell by 10.49% (compared to the same three month period up to January 2014).

However, I believe that the slowdown in property sales in Derby is actually supporting Derby property values, as there is a shortage of houses coming onto the market. Even though in the whole of the first Quarter of 2015, Derby property value increases may seem subdued when compared to 2014, let us remember, property values are still rising well above the level of inflation.

As I have said many times before, the population in Derby is growing at a much higher rate than the number of properties being built. This increasing demand for a roof over people’s head in Derby, which is outpacing the supply of new houses being built in Derby, is creating  a severe imbalance in both the Derby and the rest of the UK housing markets, thus making homeownership an ever increasingly distant dream for many of Derby’s potential first time buyers.

In fact, I still maintain the view that house prices are likely to rise by around 3 to 5% in Derby in 2015, even after taking into account this blip at start of the year. The reason being is that the rise reflects both strong economic conditions and steady market conditions with and, this is the most important factor, very low numbers of properties on the market.

Many Buy to Let landlords know that investing in the Derby property market is a long term strategy of 10, 20 even 30 years. Governments come and go, but unless the powers that be start to build thousands of new properties a year to make up for the shocking lack of supply, we will continue to have problems. Derby people will always want a roof over their head, and irrespective of which party is in power, if there aren’t any council houses and they can’t, or are unable to buy, a demand for rental properties will always remain.

As my existing Derby landlord clients will testify, whether you manage your property yourself, or another Derby agent manages your properties, everyone is always made to feel welcome when they pop in for a coffee at our offices in Derby to discuss anything to do with the Derby property market, and how Derby compares with its closest rival towns. I don’t bite, I don’t do hard sell, I will just give you my honest and straight talking opinion. However, if you are too busy to pop into town, you could always visit the Derby Property Blog for advice, intelligent commentary and analysis of the Derby Property market!