House prices in Thurmaston have experienced a slight fall in value over the last three months, new data from the Land Registry suggests. The average sale price £178’000 which is around £11’000 below the average valuation of properties in Thurmaston and a fall of 1.38%. In terms of property types, flats in Thurmaston sold for an average of £108’624 and terraced houses for £143’485, with terraced properties seeing the largest fall overall, selling for an average value of £165’625.
Over the last 6 months, Thurmaston house prices look even more grim with fall of 2.38% since January 2018. The average sale price over the last 6 months was £185’012 though which is much closer to the average valuations. This shows that Thurmaston house prices are falling but, over the last three months, this decline in value appears to be slowing.
However, in Thurmaston from January through to April, Land Registry data suggests 33 properties were sold whilst only three properties were sold in the last three months. This may mean the decrease in value is superficial and more data is required to say for sure whether or not prices have indeed fallen by 1.38%. The limitation of using land registry data is that there can be a delay of up to 3 months from when a property is actually sold to when it becomes officially recorded by the land registry but there does appear to be a trend forming here; it’s also worth noting that property sale values in Thurmaston only rose by 0.08% in the last 12 months which may spell trouble ahead for recent purchasers.
What can this mean for homeowners?
Homeowners who purchased their Thurmaston property five or more years ago will be fine, for those who bought properties before 2013 will have seen their property values rise by a whopping £40’000+, or 26.87%. This data comes from the 609 sales that have happened in the last five years including those mentioned previously. The average number of sales per year is 121, compared to data showing 123 sales completed in the last 12 months which may indicate an increased supply of properties for sale in Thurmaston. This coincides with recent reports of landlords leaving the market.
So, if sales are increasing and supply of houses for sale in Leicester rise, we may see further price decreases as per the typical rules of supply and demand.
For homeowners and landlords who purchased their Thurmaston flats and houses within the last five years, especially those who have a high loan-to-value mortgage, may have trouble if falling property values become a trend as they may find themselves falling into negative equity meaning if they sold their home in Thurmaston or Leicester (if falling property values become more widespread), they may still owe money to their bank and with around 13 new properties being listed for sale in Thurmaston each fortnight, finding a quick buyer at market value may be difficult!
On the other hand, only 3 properties are listed for rent in Thurmaston each fortnight meaning the rental competition will be much lower and, according to Harry Albert Lettings & Estates who manages several properties in Thurmaston, properties to let in Thurmaston are in high demand with a three-bedroom semi-detached bungalow clearing £750 a month in rental income whilst a two bed flat will achieve upwards of £600 per month in rent. One bedroom flats achieve a modest £525 per month rental income in Thurmaston too. This is higher than the average monthly mortgage repayment. Further to this, rents in Leicester are the fastest growing in the UK.
What should you do if you need to move, have a high loan to value mortgage and you fall into negative equity?
It isn’t an easy fix either way, according to Harry Albert Lettings & Estates, a letting agent in Leicester, for most people who fall into negative equity they will be able to “ride out the storm”, so to speak as the market always corrects itself over time. On the other hand, this may not be possible for those who want or need to move but wouldn’t be able to keep up repayments on two mortgages and the only options they would have is to take the hit financially when they sell, likely lose some or all of their deposit and possibly have to pay some money to the bank on top of the losses already incurred and hope to find a cheaper property elsewhere or they can get consent to let on their residential property and let it out, in doing so having to learn the 140+ individual regulations that apply to residential lettings and understand the consequences of falling foul of any of these regulations (which can lead to hefty fines or imprisonment).
Alternatively, you can use a reputable letting agent like Harry Albert Lettings & Estates to manage your property on your behalf so you don’t have to. Harry Albert Lettings & Estates have a really simple fee structure for their fully comprehensive property management services. They can even earn you an income during void periods, take care of any furnishings and arrange for maintenance and repairs, no matter how big or small allowing you to sit back and watch the rent flow in. Harry Albert Lettings & Estates also offers a free, 24 hour (though replies may not always be instant) landlord eClinic via Facebook chat every weekend which you can access by clicking here and clicking on ‘Send Message’. This can be used by anybody, whether they’re a landlord or looking to become a landlord, to answer any questions and provide advice about difficult tenants, Leicester landlord licensing, property values and anything else property related. Harry Albert Lettings & Estates should be your first port of call if you’re looking for a Leicester letting agent.
Harry Albert Lettings & Estates also advises homeowners to get in touch with their auction department if you need to sell your home in Leicester quick. Some benefits of using Harry Albert Lettings & Estates to auction your property are:
- Maximum values achieved.
- No seller fees to sell your property.
- Sales complete in 28 days of the hammer falling, guaranteed.
- If the buyer fails to complete on time, Harry Albert Lettings & Estates’ auction department will pay you.
- The whole process between listing your property for sale at auction and completion is just 56 days.
- Harry Albert Lettings & Estates carry out all viewings and manage the entire process from start to finish on your behalf.
- Any property type, any condition.
- Sell at market value or higher.
- Affordable Property Management: https://www.leicesterlettingagent.co.uk
- Find out more about selling your home at auction, you’ll be surprised: https://www.harryalbertgroup.co.uk/auctions
- The Future of Saving Money: https://www.leicesterpropertyinsight.co.uk/connectuk