House prices double over decade, despite recession

SHEFFIELD area property prices have almost doubled over the last decade, despite the recession.

As national agencies report a dip in prices, the local market is outstripping average performance – and the bigger picture suggests Sheffield is a sound investment for home owners.

Figures released by the Halifax agency this week indicate that prices rose by 91% during the last decade. But Sheffield’s performance trumps that.

“Generalising is dangerous but my view is that prices have doubled over the last ten years. We’re doing slightly better than average here in comparison with the national picture,” said Andrew Winter, a partner in Blundells, the city’s biggest estate agency.

The House Price Index, calculated by the Land Registry based on actual sales, goes a step further, putting the increase for South Yorkshire at nearly 130% over the period.

Properties in the east and south-east of the area have risen slightly more than those in the affluent west – probably as a result of higher demand for lower-valued homes, said Mr Winter.

A two bedroom semi in Emmett Carr Lane, Renishaw, in 2000 went for £48,000. In 2010 the same property was sold by Blundells for £103,000, a jump of 115%.

Likewise a modern townhouse in Broomhill Close, Eckington, sold ten years ago for £35,750, while a similar property last year fetched £95,000 – a 166% increase.

In the sought-after S10 postcode area, a five bedroom detached house in Sandygate went in 2000 for £218,000 and in 2010 for £525,000: a jump of 141%, though the property may have been altered.

A nearby apartment increased in value by 91%, from £54,000 to £103,000. But a three bedroom semi in Ringstead Crescent, Crosspool, less than a mile away, rose by only 67%, from £135,000 to £226,000.

“It’s very difficult to comment on these statistics because every part of the city can differ and every house can differ,” said Mr Winter.

“The general expectation is for no major increase in prices until 2013 but who knows? On this performance, property remains a solid long-term investment.”

Analysts are currently reporting a 2.8% increase in Sheffield house prices in the year up to October, boosted by an increase of more than 5% in the third quarter.

While severe weather may have had a negative impact over the traditionally quiet Christmas period, there is no sign of a downturn.

Meanwhile the rentals market continues to boom as uncertainty over jobs and mortgage lending keeps prospective buyers at bay.

A shortage of properties is adding to an increased demand for rented homes, particularly three bedroom semis and town houses.