City centre flats join Sheffield property boom as demand rockets by 50 per cent

Experts say city centre living could be making a comeback, with buyer demand for flats increasing by 39% since January, according to a property website.

Rightmove says the city’s property market pandemic boom continues as buyer demand for Sheffield city centre flats in April was 51% above pre-pandemic levels.

So while larger family homes have been the strongest performers in the housing market over the past year, the focus now seems to be shifting to flats.

Sheffield, York, Norwich, Birmingham, Glasgow, Cardiff and Manchester are among the cities that have experienced buyer demand in their centres increasing since the start of 2021, Rightmove said.

Luke Williams, local property expert for Sheffield at Purplebricks, said: “With restrictions easing, we’re starting to see a lot of people looking to return to city centre living and all the convenience that it brings.

"As bars and restaurants reopen, we’re seeing an increase in inquiries about flats and apartments. People are starting to go back to the office, even for a couple of days a week, and the convenience of living close to where you work is very appealing.

“There are some really good deals out there for first time buyers and buying a flat is a good way for them to get onto the housing ladder, especially with the government-backed mortgage guarantee scheme now available.”

The Rightmove survey is the third this week to put Sheffield in the centre of the property boom. Estate agent Hamptons named the city as the second most in demand location in England as homes sold with an average of 5.9 offers per sale and the average home cost £191,300.

A study by international payment experts RationalFX showed showed the biggest rise in average Yorkshire house prices is in Sheffield and Barnsley.Rightmove’s housing expert Tim Bannister said: “These are early signs but they certainly point to some good news for city centres across Great Britain, with a number of agents now telling me they’ve seen a marked uptick in demand from first-time buyers, and they’re managing to sell city-centre flats more quickly than in earlier months of the year.

“People are starting to venture in to their local high streets and once again experiencing the buzz of their city centres, along with greater mortgage availability for first-time buyers, means city centres are staging a much-needed comeback in the market.

“Right now some buyers are able to grab a relative city bargain compared to the heady price growth outside cities, but these early signs of demand could be the start of city prices rising again.”

The easing of coronavirus restrictions and the recent introduction of the Government-backed 5% deposit mortgage guarantee scheme are said to be helping to boost demand.

A Rightmove survey of more than 1,000 first-time buyers found nearly one in five – 17% - are planning to use the mortgage guarantee scheme or are already using it.