The pros and cons of rising house prices in Leicester
Isn’t it funny how property prices rising is assumed to be a good thing? If the price of coffee at your favourite chain shop increased by 10% you’d be annoyed, but if the value of your home increased by 10% you’d be thrilled.
In the UK, we’ve always been brought up with the idea that owning your home is a good thing. Ask your parents why they bought their home and they’ll say it was a good investment or that’s just what you do. So, with the current property market in Leicester constantly moving and changing, what are the positives and negatives of a constantly changing property market?
Positives
- Rising property prices are often greatly welcomed by home owners as the cost of their property has begun to increase since they purchased it. A lot of the time people buy property as an investment or as a starting place to get onto the property market. In Leicester, the property market can be difficult, so as first-time buyers rising house prices can add significant value to your current home.
- Homeowners who are looking to downsize their current property will significantly benefit from rising house prices. As the cost of their current Leicester home increases they will see a considerable amount of money left over that they did not expect to receive.
- For most people our homes are our biggest asset so to know that they are increasing in price without doing anything is great to hear. Homeowners want to be reassured and understand that their home is creating an increasing in value and provides a strong based to progress from.
Negatives
- As someone looking to get onto the property market for the first time, rising house prices will make things more difficult. House prices rise much faster than wages, which means that houses become less and less affordable. Anyone who didn’t already own a house before the bubble started growing ends up giving up more and more of their salary simply to pay for a place to live.
- It not just first time buyers that are affected by rising house prices in Leicester but renters too. As house prices rise so too does the average rental price as landlords believe that they can receive more money on their investment.
- Rising house prices can often cut people out of joining the property market or unable to upsize their home. As much as the cost of a current property is also increasing in the property market it makes the chances of upsizing more difficult as these properties too are rising in price.
Rising house prices in Leicester will never work in everyone’s favour, however whilst the property marketing is booming house turnover is increasing. This provides people who are looking to get on the market or move up the property ladder a greater range of properties to invest in and keeps the market moving.
If you’re looking to sell your current property talk to one of our property consultants today to find out exactly what you need to do to get your home on the property market. At Open House Leicester we’re here to make selling your home simple.
Talk to one of our property managers today to find out how Open House Leicester can help you when looking to sell your property or trying to get a step on the property market. Call 0116 243 7938 or email info@openhouseleicester.co.uk
