By Patrick Kneath

 

Beaumonts Estate Agents

 

According to the latest land price registry figures, while the rest of the country still has prices languishing about 15% below the peak seen in 2007, property prices in Brighton and Hove have almost made up all of their lost ground.

In the Fiveways area of Brighton, Beaumonts has seen a definite increase in prices over the last three years of at least 10%-15%. For instance a four-bed house which was purchased in 2009 for £354,000, we sold to London buyers for £442,000.

Now we're not saying that a local buyer cannot afford to move within the area – far from it.

I have studied the planning application history spanning the last two years and noted that there has been a demand for homeowners to extend their properties to add another bedroom and ground floor accommodation and those that have completed the works have seen a huge increase in the value of their home.

Gone are the days of homeowners buying and selling and making a quick £50,000-£100,000 in a year. But they are now realising that the property market in general in Brighton and Hove has stayed stable and there is always a need to move. I don't see a housing bubble occurring, but what I do note is that analysts are coming up with ideas to create jobs, which in turn creates the need for housing.

An article in the Argus Business Supplement on January 21 was headlined: “Restore Brighton and Hove’s derelict houses to boost economy, the Centre for Cities survey urges”.

It said that the lack of housing prevents people accessing jobs or means they are stuck in cramped accommodation. In other cities, incentives to retrofit empty houses could improve local quality of life.

In relation to the agents selling properties, Miles Shipside, director and housing market analyst at Rightmove, comments: “Building chains from the bottom up helps create greater volumes and fluidity, and is key to a broader market recovery.

“After five years of putting their lives and moves on hold with their spare space shrinking around them, it looks like some of the pent-up demand to move is breaking out.

“Perhaps more are becoming immune to the relentless flow of bad news stories, financial Armageddon seems to have been averted and people are choosing to get on with their lives.”

Now that the snow has gone, the reports of a triple dip recession are fading and positivity from the British Retail Consortium about a like-for-like sales increase on the high street should avert the financial Armageddon that we have been led to believe we are heading towards.