House prices 'bonkers' in Sheffield, says agent
Average house price rises of more than 30 per cent in Sheffield are ‘bonkers’ and are making the city’s property market a headache for everyone.
Nicola Spencer managing director at Spencer estate agent on Ecclesall Road, said prices were being fuelled by too much demand and not enough supply.
She commented as figures showed the biggest rise in average Yorkshire house prices is in Sheffield and Barnsley, which top the county figures in a new study.
Those prices have risen by more than 30 per cent compared to five years ago, according to figures from the Office of National Statistics.
In February 2016, the average Barnsley price was £108,619 and in the most recent figures for February 2021, it stood at £147,535 – an increase of almost 36 per cent.
The second biggest increase in average house price in South Yorkshire was in Sheffield, which jumped 32 per cent, going from £144,773 in February 2016, to £191,303 in February this year.
The figures show that Sheffield remains the area with the most expensive average house price in South Yorkshire. They come as London prices stood still in lockdown, while areas further north like Yorkshire got double-digit increases, due to the shortfall in supply that suits people’s changed needs and lives.
Nicola Spencer described the market as ‘bonkers’. "Too much demand and not enough supply mean prices have gone through the roof,” she said.
"There are people moving here from London with money. We had a situation where a property in South West Sheffield on the market at more than £500,000 had 19 final offers and eight were from London.
"The house went for more than £100,000 over the asking price.”
She added the situation was causing stress for everyone. “18 or 19 offers isn’t good - I need more staff to deal with it, but we get the same outcome.
"I’m having to advise people to offer on 10-15 properties when you’d like to think you buy with your heart but now your being driven by postcode and school catchment.”
The figures come from a study, by international payment experts RationalFX, which compared the average price of a house across more than 400 areas of the UK.
In Yorkshire, South Yorkshire was ahead of East Riding in second place with an increase of almost 26 per cent, West Yorkshire in third with a 25 per cent rise, and North Yorkshire, which has gone up by 20.
South Yorkshire’s house prices have also outperformed the national average increase, while staying below the national average price by nearly £100,000.
Across the UK, the average house price in February 2016 was £205,555, while the latest figure stands at £250,340 – an increase of 21 per cent.
Comparing the four nations of the UK, Wales had the biggest increase in average house price over the past five years – 26 per cent - going from £142,711 in 2016, to £179,860 in 2021.
Northern Ireland isn’t far behind, showing a 24.18 per cent increase, with the average price rising from £118,850 to £147,592.
England’s average house price has gone from £220,626, to £268,291 – an increase of 21.6 per cent.