‘No sign bubble will burst’ as Chesterfield property prices keep on rising

The boost contributes to the longer-term trend, which has seen property prices in the area achieve 15 per cent annual growth.

The average Chesterfield house price in May was £183,403, Land Registry figures show – a 3.5 per cent increase on April and up 15 per cent in a year, from £159,434, putting the area fifth among the East Midlands’s 45 local authorities for annual growth.

In North East Derbyshire, prices have risen 6.1 per cent in a year, from £181,795 in May 2020 to £192,850 in May 2021.

In Derbyshire Dales, they have risen 20.2 per cent, to £310,811, while they are up 11 per cent in Bolsover over the year, to £145,909 and 12.1 per cent in Amber Valley, to £203,473.

In Derbyshire as a whole, prices have risen 12.6 per cent, from £180,098 to £202,761, while the England average is up 9.7 per cent, to £271,434.

David Hannah, property tax specialist and principal consultant at Cornerstone Tax, said: “Some have predicted a crash, but they seem to be continuously corrected by a market still moving upwards, even if now slower than before.

“Although it is still up for debate, and some experts disagree, the consistent rise to ever-increasing heights, now tapering and levelling out, but still with no sudden change in direction, suggests the bubble won’t burst.”

‘Market cannot go on rising forever’

Owners of terrace houses saw the biggest improvement in property prices in Chesterfield in May – they increased 3.9 per cent, to £136,818 on average. Over the last year, prices rose by 16 per cent.

Detached homes are up 16.2 per cent over the year, to an average of £279,402, while semi-detached properties are up 14.2 per cent over the period, to an average of £171,696.

The average price of flats has risen 11.6 per cent, to £109,521.

The figures, published in the UK house price index, show first-time buyers in Chesterfield spent an average of £155,000 on their property – £20,000 more than a year ago, and £38,000 more than in May 2016.

By comparison, former owner-occupiers paid £207,000 on average in May – 33.7 per cent more than first-time buyers.

Chris Ward, chief executive officer of SDLT Compass, a new technology for the conveyancing industry: said: “The market cannot go on rising forever.

“It is physically unsustainable as we face chronic shortages of property supply, and the same savings are no longer available yet prices are still incredibly high.”

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