How house prices have changed in Leeds over the past two years
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How House Prices Have Changed In Leeds Over The Last Two Years
Historically, North West Leeds has offered off-street housing to a huge proportion of students studying full time in the city. Not only this, but the city has also been a host of other domestic dwellers who have mainly comprised of tenants with no permanent residences. Over the years, house prices for rent and sale have been seen to fluctuate inspired by many factors including overall changes in the economy across the country. However, over the last two years, considering there have been fears about brexit, the Leeds housing market has suffered a blow and thus prices have not been at par with most parts of the country.
Prices fell below national average
According to expert review, house prices fell within the period starting in 2015 and ending in 2017, going as far as lower than the national average. Within this period, housing prices average fell to £194,372 against the national average that stands at £217,939. There are many factors to blame for this shift including the Brexit exodus, which has kept many sectors of the economy waiting in anticipation of the results that would come up.
Many of those who triggered the effect included students who had earlier migrated to the city from foreign countries for purposes of learning, and on top of this there were many companies that had to shift from having their foreign workforce situated within the city as the Brexit debate escalated further. However, there seems to be a recovery as 2017 approaches and this is occasioned by the perceived calm that is gradually coming in due to the fact that not much has happened as regards the Brexit conversation, and investors and people feel the future will be calm equally, hence the willingness to invest in housing in Leeds recently.
Plentiful rental options
Another issue that triggered a shift in house prices in Leeds is the increase in rental options vis a vis the number of people available to fill the many available spaces. This definitely meant for investors to recoup their investment and probably service their loans they had to reduce the prices to lure tenants into choosing their houses. The surge also came as there was mass exodus due to the threats brought forth by the Brexit conversation. Many of those who were to invest in Leeds paused the idea to see how the conversation would end.
Due to the calm that followed going into 2017, these investors started to review their earlier decision and most of them have embraced the idea of moving forward with choosing Leeds as one of their business destination, which means those in the housing business have received a relief as more people buy property and rent for business. With this increase in demand of housing, prices have as well been seen to adjust upwards. Experts quote that politics is a great force through which many investors make decisions, and the trend experienced in Leeds over the past two years was a reaction to the political mood present in the country.
Testing for the market over past 6 moths
As the uncertainty about Brexit hit a high, the last six months have been a trend of testing to see if there is any possibility of investment options thriving. Therefore, within that period there were many assumptions on the side of investors as well as fears inspired by the possibility of Brexit crushing the market further, so this lead to a drop in house prices by 1.23 percent. This might be seen as a trivial sum, but investors understand the pain of losing even a single Euro to uncertain occurrences, so on their part it was a blow.
Going into 2017, the value of housing began to pick and as at now is estimated to have risen 1.07 percent compared to one year ago. That’s good news to investors and those in the real estate market as the market seems to have recovered from the uncertainties occasioned by Brexit. However, full recovery is yet to take place as not all investors have embraced the idea of investing. Most of them are having a wait and see approach, which has slowed down progress.
An expert review of data collected between 2015 and 2017 showed that at least 30 percent of properties located in student areas lay empty. There were many empty advertised properties, and with this competition came the need to adjust prices to match the demands of the market, so this is one of the reasons prices reduced within the period. This was also the case within adjacent cities and towns, a testimony to the unsettled state of the market due to the Brexit uncertainties and fears among investors who anticipated establishing businesses within the city of Leeds.
Mass student exodus
Additionally, further research conducted by a council team showed that within the two years period, there was a surplus of student bed spaces, and this affected the prices of houses built for student accommodation. Basically, prices came down as a reaction to the change in supply of tenants. There have also been concerns that most houses converted into student accommodation areas might not easily get back to the family market since the conversion to include student bed spaces came with the need to implement many changes. Those that were converted back to family accommodation had to enter the market at lower prices than new houses build in the family segment.
Earning the title ‘student areas’ has brought a negative effect on those that are converted back to family housing, and this could mean to sell builders have to tag lower prices. Although there have been efforts to give these areas an image that they are a perfect area for family accommodation, the market has been slow on embracing the idea, so change in prices to an upward trend has also been at a snail speed, to the disadvantage of investors who chose to go for student accommodation initially before reverting to family class housing.