Newport named fastest moving market as for sale properties drop by a third
Newport in South Wales is the fastest moving market in the country leading to a property shortage and long waiting lists in the city, analysis by property website Rightmove found.
The city’s housing market and surrounding areas have seen a surge in activity. This is partly due to last year’s announcement that tolls on the Severn Bridges will be scrapped by the end of 2018. The interest from buyers in much more expensive areas like Bristol where the average asking price is over £300,000, also played a part
The increase in demand has led to the number of available properties for sale dropping by more than a third (37%) and asking prices rising by over £12,000 to £175,944. The time it takes to secure a buyer has dropped from 76 days to just 52 days over the past year, a 32% drop.
Miles Shipside, Rightmove’s housing market analyst, said: “The average asking price of a property in Newport is almost half that of Bristol so you can see why buyers are making the move into Wales, especially as they know the tolls on the bridges will be scrapped at the end of the year.
“However, the demand is clearly taking its toll on the number of properties agents have available to offer buyers on Rightmove, making it very much a sellers’ market in Newport right now.”
Nathan James Reeks, owner of Nathan James Estate Agents in Caldicot and Magor just beside The Severn Bridges, said: “We sold nine houses in the past week as the market is about four times stronger than it was this time last year, after it was announced that the tolls will be scrapped.
“In fact, we sold one recently within just a few hours, which sold for over £100,000 more than it sold for only 18 months ago. The result of this is a huge stock shortage, which is making it tough for both local first-time buyers trying to get on the ladder, and for those coming from places like Bristol.
“I’d say that within the next six to nine months you won’t be able to get a property for under £250,000 within a 10 mile radius of the bridges.”
The second fastest moving market is Oldham in Manchester where the number of available properties has dropped by 35%. And the number of days to secure a buyer has dropped from 101 days to 76. Two other places in Greater Manchester also make the top 10, Rochdale and Leigh.
Richard Powell, director of Ryder & Dutton in Oldham, Manchester, Lancashire & West Yorkshire, said: “Local markets like Oldham and Rochdale attract a number of different types of buyers covering all price ranges, and most buyers are local.
“The lack of new properties coming to market, together with more interest from first-time buyers, has led to prices rising more quickly than in the previous few years, and the time to secure a buyer reducing.
“We’re now seeing price levels higher than 2007 which has generated more confidence in the market. However, because potential sellers cannot see properties they want to buy they are still very reluctant to list their own houses, leading to demand outstripping supply in these areas.
“The total number of transactions is being limited by the number of properties available rather than the desire to purchase, so we expect prices to rise further over the next few months.”