North Derbyshire experts fear booming property market is driving prices out of first-time buyers’ reach
Mortgage experts in North Derbyshire mortgage say the property market boom is “here to stay”.
The latest Nationwide house price index shows annual house price growth has risen to 10.9 per cent, the highest level in nearly seven years, with prices up 1.8 per cent in May alone.
It says the new record average price for a home is £242,932, up £23,930 in a year – the latest UK house price index, for March, found the average price in Chesterfield borough was £170,221, up 7.1 per cent in 12 months.
Demand has been boosted by the stamp-duty holiday, introduced by Chancellor Rishi Sunak to support the property market during the coronavirus pandemic – and two Derbyshire mortgage experts believe that demand, which is driving up prices, is here to stay.
Paul Neal, an independent mortgage broker at Missing Element Mortgage Services, Belper, said: “Demand is off the scale and the inevitable upward pressure on prices is making it difficult for first-time buyers to get on the ladder.”
Rhys Schofield, managing director at Belper’s Peak Mortgages and Protection, said: “The relentless March of the property market continued in May, with desperate buyers falling over each other to snap up any new stock in a heartbeat – one house locally on the market for £600,000 had 20 offers on it last week.
“First-time buyers are especially keen to move out from under their parents’ feet, where they have been for the past year, and are using savings accrued during lockdown to get onto the ladder – any property in reach of first-time buyers is seeing phenomenal demand.
“Even when the stamp-duty holiday is behind us, we're going to keep seeing prices rise as there is simply not enough available housing for a nation with homeownership in its DNA.”
However, one East Midlands expert said there were doubts over the market’s “long-term stability”.
David Hannah, founder of Cornerstone Tax, said: “Many experts are questioning the long-term stability of the market, but right now, it is certainly a sellers’ game.
“Although, due to restricted supply, there are not many sellers – and prices have risen by an incredible amount.”
He said the rise had been driven by a “city exodus” – a Cornerstone study found nearly half of Brits feel the impact of coronavirus has made city-living less appealing.