By Sarah Martin
Sheffield property prices are on the up. The Land Registry data shows a 28% increase in house prices over the last ten years and Hometrack UK recently cited it as one of the strongest cities in the UK for house price growth, ahead of Birmingham, Edinburgh and Cardiff.
So what is driving this burst of activity in the residential property market of Steel City?
Oliver Ramsden, managing director of Aspen Woolf, a property investment company was recently quoted in a Property Investor Today article as saying:
“The rise in house prices has already started and will be continuous…even during construction, prices will continue to rise in anticipation, which is what we call the ‘HS2 effect.”
The new high speed railway which is due to be fully operational by 2033 will connect the city with Birmingham, Manchester, Leeds and London.
However, with the completion date so far off and rumours that it may even be delayed as a knock on effect the overrunning schedule of Crossrail 1, perhaps there are other factors which are pushing the Sheffield House Prices ever higher.
My current workload reveals an increase in the number of buy to let properties. With a high level of student accommodation, Sheffield offers opportunities for investors still keen on bricks and mortar investments. Those who were initially put off by the increase in stamp duty are starting to calm down and return to the market. Those who were waiting for the outcome of Brexit are waiting no longer. Either they are confident the market can withstand any turbulence caused by the UK’s departure or they doubt Brexit will happen at all. If the former, some are feeling an investment outside of London is a lower risk.
The mortgages available are improving with many lenders offering better rates, but still sensibly within the affordability parameters.
All these points should be considered, not in isolations, but as collective factors which bring about perfect economic conditions for an improving and flourishing housing market.
For whatever reason, Sheffield, my home city, is thriving and long may it continue.
By Sarah Martin
“The rise in house prices has already started and will be continuous…even during construction, prices will continue to rise in anticipation, which is what we call the ‘HS2 effect’.”