Buoyant despite Brexit – that’s Derby’s property market

Added by Love Business East Midlands | 4 March 2019

UPDATED: 4 March 2019

Investors are turning to the Derby property market as other commercial opportunities have dried up during the uncertainty over Brexit.

During 2018, buy-to-let activity had slowed up but there is growing evidence that 2019 could show a very different picture.

Andrew Sanderson, director of AKS residential, said:

“In January 2018, just three per cent of our buyers were investors but that increased to 31 per cent this month.

“That could well be down to them believing there is a better chance for growth in a property investment than portfolios linked to a volatile stock market.”

“There is a perception that it is a challenging market in terms of house sales but, in reality, 2019, has got off to a great start.

“We have had a 92 per cent increase in buyers registering with us, a 127% increase in viewings and a 136% increase in the number of offers.

“This comes on top of a year when we sold properties at an average of 100.04% of their asking price,” he added.

Andrew believes that the buoyancy of the Derby property scene, particularly in the city centre, where properties are let to students, is down to the value of the homes for sale.

In Derby, the average house price is £174,000 by in London it is £640,000 (source Zoopla).

Meanwhile, over the past year, the average value of properties has dropped by 0.6% in London but increased by 2.3% in Derby.

He added:

“Compared to the south-east which tends to receive most of the national publicity and houses are very expensive, there are some very good deals in Derby.

“It is also possible for first-time buyers to find themselves a home with deposits which are well in their financial range.

“Oh, and it is a great place to live and work!”                                                                   

Andrew’s comments are borne out by AKS’s January statistics which show the number of first-time buyers increased from 25% in January 2018 to 35% this year.

Pelin Tumay who lives in London is buying some investment properties in Derby, said:

“We didn’t know Derby before but after lots of research decided to invest here due to the strength of the university as well as the large employers like Toyota, Rolls Royce & the hospital which makes for a very strong rental market offering good returns.

“We’re very confident in the strength of the Derby market and are looking to invest for the medium to long-term.”

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