Location trend report: The Midlands
Middle England is anything but middle of the road when it comes to property and progress. Viewber takes a look at the prospects in Staffordshire, Nottinghamshire and Derbyshire.
Set to the north east of Birmingham, the Staffordshire, Nottinghamshire and Derbyshire trio of counties sit on the border of where the Midlands meets the North. Although they’re not northerly enough to make it on to the Northern Powerhouse agenda, they are subject to their own ambitious regeneration schemes for a rapid ‘levelling up’ with London.
Multi-million pound initiatives include Stafford Gateway, Derby City Centre’s Masterplan 2030, Nottingham’s Island Quarter and, of course, the HS2 high-speed rail line, which will travel through all three counties. The East Midlands Hub at Toton will become one of the most connected places in the UK – with rail journey times of 10 minutes to Nottingham and Derby - and an additional station at Stafford.
House prices and rental values in Staffordshire, Nottinghamshire and Derbyshire are mirroring the progress seen in other sectors, and values are rising in anticipation of what lies ahead. Here’s a snapshot of 2021’s property landscape to date.
Prices peak but remain under £250,000
The three counties offer exceptional value for money when it comes to purchasing a property, despite healthy value rises over the last 12 months, as illustrated by the Rightmove figures below. Each county’s overall average house price sits under the £250,000 stamp duty threshold – the point at which the rate jumps from 2% to 5%*.
- Staffordshire: overall sold prices in Staffordshire over the last year were 10% up on the previous year and 15% up on the 2018 peak of £199,477. The overall average property price is now £229,763.
- Nottinghamshire: during the last year, sold prices in Nottinghamshire were 13% up on the previous year and 17% up on 2018, when the average house price was £196,837. The overall average property price is now £230,166.
- Derbyshire: overall sold prices in Derbyshire over the last year were 11% up on the previous year and 15% up on the 2018 level of £202,052. The overall average property price is now £231,357
The value of house charge ahead
Looking at The Midlands as a region, the race for space has tightened its grip over the past year. In the East Midlands, the value of houses has jumped 7.7% in the 12 months to June 2021, compared to flats, whose value has risen 3.7% over the same period. It’s a similar story in the West Midlands. Here houses have risen in value 7.4% in the 12 months to June 2021, with values of flats rising just 0.5% over the same period.
Town & city trends
Hometrack’s UK House Price Index for June 2021 shows annual property price growth in Nottingham is some of the strongest in Great Britain, with the city taking 5th spot among the top 20 best performing cities in the UK and having an average house price of £172,100.
In comparison, properties in Derby city centre have an average price of £171,280, according to Rightmove – up a massive 33% on the previous year. In Stafford, the portal has the overall average property price in the town at £216,925 – up 3% on the previous 12 months.
Rental values are also rising
While purchasing a property in the Midlands has got markedly more expensive over the last year, rental values have climbed at a gentler pace. The most recent HomeLet Rental Index – using data reflecting June 2021 – shows that rents in the East Midlands have risen by 8.1% in the last year but stayed flat during May and June 2021, to yield an average value of £704 per calendar month. In the West Midlands, rents have climbed by 5.4% in the last 12 month but they actually dipped -0.1% in June 2021 to settle at an average of £754 per calendar month.
*Pre-Covid stamp duty rates return from 1st October 2021. Until then, there is no stamp duty to pay on properties worth less than £250,000 and that complete on or before 30th September.