Leicester

[Viterbi]

Any idea on the house price situation in Leicester?

[Gemonster]

Any idea on the house price situation in Leicester?

As a FTB, I have been actively looking for a house in either Anstey village, Glenfield or Groby. Mainly 3 bed semis in the region of 160k.

Over the past 6 months I have made several offers on different properties. After having done some reseach as to previous selling prices and taking tips from this site and a few others, the offers were approximatly 10% off the asking price. A couple of them were even only 5% off the asking price! However, so far I have found that there are other buyers out there, which have been prepared to pay the full asking price.

What concerns me is that the asking price has been well above the highest price sold in those locations and they are still selling.

A neighbour has also, in the last 6 months, bought his sixth house in the area, which I am at present. It was an end of terrace, which sold for £130k. This property would have struggled to have sold 5 years ago for above 30K.

I also noticed that, wereas a couple of years ago the agents wouldnt bother contacting me about any property, recently they have been calling me with all sorts of houses coming onto the market, even houses that are in areas I stated I wasnt interested in. Thats so annoying!

I just dont see sensible prices in the areas that im looking at and for the house that im looking for.

[Gemonster]

Are there any other HPC readers looking at property in Leicester?

Happy new year to all.

Gemonster

[No6]

Are there any other HPC readers looking at property in Leicester?

Happy new year to all.

Gemonster

I have family in Leicester and when I visited over the Christmas period, I noticed an article in the local Leicester Mercury that indicated that prices fell 5% in Leicester last year. Looking at the property papers in the Mercury I got the feeling that prices were lower. They still look too high though, houses on the worst estates still on offer for £90grand + for instance.

[Gemonster]

I have family in Leicester and when I visited over the Christmas period, I noticed an article in the local Leicester Mercury that indicated that prices fell 5% in Leicester last year. Looking at the property papers in the Mercury I got the feeling that prices were lower. They still look too high though, houses on the worst estates still on offer for £90grand + for instance.

Thanks, I had a look for it and I think I have found the article your refering too...

http://www.thisisleicestershire.co.uk/disp...me=filtersearch

I totally agree, the prices are still too high and I don't see the 5% fall in the type of house in the areas that I have been looking at for over 2 years now. At least not in the asking prices, but of course that could be different to what's being accepted. Although having offers turned down recently and the houses purchased by others makes me think there can't be many lower offers.

My g/f wants to buy though so we are still looking. The houses on the worst estates are easily within our reach, but we agreed some time ago that they are just not worth considering as we would be stuck, possible for over a decade going through a cycle of negative equity.

The next few months will be interesting. Even if prices pick up by 1% as predicted, we both live at home with our parents so our deposit grows at a larger rate. I don't know how long we can wait anymore though.

[No6]

The next few months will be interesting. Even if prices pick up by 1% as predicted, we both live at home with our parents so our deposit grows at a larger rate. I don't know how long we can wait anymore though.

They will be interesting and I don't think you should believe the hype about 1% growth either. Obviously you can find out what the price actually paid from sites like Nethouseprices. It's a question of whether you are prepared to wait and have the confidence that prices have further to fall, or if you feel you have to move out of your parents home, how long before you have to go. Renting in Leicester looks a far cheaper option to me than buying.

There appear to be plenty of reasonably nice houses to rent in Leicestershire for approximately £500 or less a month. Where I live in the south, you would pay that for a room in many places. I'm assuming that you and your GF are both working so if you have to rent, £2-300 a month each should get you a reasonably nice place, one that you would have to pay more for on an interest only mortgage. Some still like to think renting is dead money, but search this forum for threads on the renting v buying into a bubble housing market for proof that it isn't.

I suppose one way of looking into this is to check the prices of houses in areas that you would like to buy in and then see how much they are renting out for. If it's a lot less to rent, epecially if you can do a deal on the rent, then I would have thought that renting is the better option until prices fall to a sensible level.

[Gemonster]

Renting in Leicester looks a far cheaper option to me than buying.

There appear to be plenty of reasonably nice houses to rent in Leicestershire for approximately £500 or less a month. Where I live in the south, you would pay that for a room in many places. I'm assuming that you and your GF are both working so if you have to rent, £2-300 a month each should get you a reasonably nice place, one that you would have to pay more for on an interest only mortgage. Some still like to think renting is dead money, but search this forum for threads on the renting v buying into a bubble housing market for proof that it isn't.

I suppose one way of looking into this is to check the prices of houses in areas that you would like to buy in and then see how much they are renting out for. If it's a lot less to rent, epecially if you can do a deal on the rent, then I would have thought that renting is the better option until prices fall to a sensible level.

I take your point about the rent levels, and while its possible for my partner and I to rent and still save a deposit, our lump sum has grown far larger from the fact that we are both living at our respective parents homes.

Yes, we both work, albeit as civil servants. I ruled out renting as a non-starter a few years back , although admittedly it was from a stereotypical snobbish view point. However, I made the suggestion recently and my GF looked at a couple of rentals.

I can't say that this is the way we will go but having read this site on a daily basis, I'm coming round to it. Although the GF made a point in that a restriction to rentals would be that no pets would be allowed (we have a one-eyed rabbit and a cockatiel).

Cheers for your replies

Edited January 5, 2006 by Gemonster

[Gemonster]

My G/F's brother and his wife have decided to sell up and move to another area (from Loughborough to Birstal).

Their house, which has only just gone on to the market, is up for twice as much as they paid, now just under four years ago. However, it appears to be 20% above the last sale price back in April 2005. As I'm not being too specific, I can tell you that they are willing to take offers 7.5% below the asking price.

Even with the price that will willingly reduce to, this is clearly still way above the last highest sale. Although I have been told that a similar home is being marketed at a 6% premium to theirs.

So far they have had three viewings.

I will post any updates as and when I get any.

Somehow, I dont think it will shift any time soon.

[Gemonster]

Interesting comments from Leicester Agents

Three out of four local agents refute the price drops suggested by the latest Rightmove report. I wonder why that is?

Brian Taylor, managing director of Taylors estate agents, which has 10 branches in Leicester and the county, questioned the Rightmove figures. He said: "It's difficult to know what to say about the Rightmove figures, but we've not seen a fall of £4,000.

"It's a good market, as good as I've seen it for a while. Prices are holding firm. It's too early in the year to start making wild statements, but activity is certainly up on last year. Last year was terrible, but I think 2006 will be a steady year."

Maybe this is the true voice.

Nick Humphreys, managing director at Nicholas J Humphreys, with offices in Loughborough and Leicester, said the £4,000 figure came as no great surprise.

He said: "I think prices were unrealistic, and there is no escape from the fact that we are selling houses more cheaply than we were last year."

[Gemonster]

My G/F's brother and his wife have decided to sell up and move to another area (from Loughborough to Birstal).

Their house, which has only just gone on to the market, is up for twice as much as they paid, now just under four years ago. However, it appears to be 20% above the last sale price back in April 2005. As I'm not being too specific, I can tell you that they are willing to take offers 7.5% below the asking price.

Even with the price that will willingly reduce to, this is clearly still way above the last highest sale. Although I have been told that a similar home is being marketed at a 6% premium to theirs.

So far they have had three viewings.

I will post any updates as and when I get any.

Somehow, I dont think it will shift any time soon.

It's been a while since I last posted and he has now had a total of 5 viewings but no offers. A part of the problem could be that the house needs a bit of a tidy, something which he is now addressing. He also has not reviewed the asking price.

I was chatting to him a few weeks ago and he was complaining about the agent. He said that they didn't seem to be doing much to sell the house for him. In fact he was having to show people round the house when there was any interest. I asked if he had negotiated on the agents fee, which he hadn't, but he said that when a decent offer came in, he would only accept if the agent reduced their take i.e. negotiate the fee after an offer. I advised him to think about this and consider moving to a better agent (if there is such a thing).

Its fortunate that he doesn't seem to be in a hurry to move. I still don't see it happening any time soon.