Fresh boost for first-time buyers as average price of flats tumbles by £4,000 in Northampton

Official figures show 3½ per cent drop in a year compared to 0.7 per cent fall for all property
Averages prices for flats and maisonettes in Northampton have dropped in the last 12 monthsAverages prices for flats and maisonettes in Northampton have dropped in the last 12 months
Averages prices for flats and maisonettes in Northampton have dropped in the last 12 months

First-time buyers in Northampton could find a bargain as prices of flats and maisonettes tumble in the town.

Average prices have dropped by nearly 3½ per cent in the last 12 months as the buy-to-let market collapsed.

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And local estate agents believe the prospect of further falls as more town centre properties are converted into residential space should not put off anyone thinking about buying now.

Nick Rees, director of Jackson Grundy, said: "There are opportunities out there for people who want to own their own home with a healthy deposit and squeaky-clean credit score.

"It can be quite difficult to get a mortgage for first-time buyers but don't be put off because now could be as good a time as any.

"Interest rates are at an all-time low and if you can get a two or five-year fixed rate mortgage then you will have the reassurance of knowing exactly what you will be paying.

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"The key is having a good deposit and if you can scrape together 15 per cent plus then you are in a really good position and could pick up a bargain."

Estate agent Jackson Grundy say first-time buyers could pick up a bargainEstate agent Jackson Grundy say first-time buyers could pick up a bargain
Estate agent Jackson Grundy say first-time buyers could pick up a bargain

The average price of a flats or maisonette in Northampton was £128,936 in June 2019 according to Land Registry data but fell to £125,874 in May this year and then by almost one per cent in June to £124,725.

Overall, average house prices in the Borough rose by 0.7 per cent in 12 months to June and by 4.5 per cent across the East Midlands.

Mr Rees admits the number of former retail outlets being converted into residential space in the town centre is likely to have an affect on future prices.

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We revealed yesterday how Northampton Borough Council has paid £1.45million for the former Marks & Spencer store in Abington Street with plans to convert the empty building into flats and small shops.

Northampton's town centre planners want to turn the former M&S store into flats and small retail shopsNorthampton's town centre planners want to turn the former M&S store into flats and small retail shops
Northampton's town centre planners want to turn the former M&S store into flats and small retail shops

Market Walk in the town centre has also been earmarked for conversion into student accommodation.

Mr Rees added: "The number of flats available is obviously going to affect prices and already we are seeing the buy-to-let market is not what it was two or three years ago as investors are selling off portfolios.

"Another factor driving prices is I think lockdown taught a lot of people that open space — a garden — is important.

"But we are still 35 per cent up in sales post-lockdown compared to before March so clearly people are still keen to move."