Stoke-on-Trent house prices figures from Land Registry

HOUSE prices in Stoke-on-Trent have almost doubled over the past 10 years but the city remains one of the most affordable places to buy a home in England and Wales.

Figures from the Land Registry show the average home in the city cost £39,075 in December 2001.

That rose to a peak of £91,532 in December 2007 but, after the recession kicked in, that dropped steadily to £70,457 at the end of last year.

Estate agents are not predicting significant increases this year but say the amount of sales is rising steadily.

Nigel Dickin, partner at Butters John Bee, said the 'unique character' of Stoke-on-Trent's housing market meant the city had not experienced huge price rises seen further south, which in turn insulated it from the later drops.

Last year, the average price of a home in the city dropped by 4.4 per cent from £73,713 in December 2010 to £70,457 in December 2011, but many areas of the country saw much bigger annual falls – as much as 17.5 per cent in Hartlepool.

Mr Dickin added: "There will be no dramatic price rises certainly for the next 12 months but I believe we will start to see a steady increase in the number of house sales.

"To a certain extent, some of the confidence is starting to come back, as it is in business.

"We're starting to notice a number of purchasers from outside the area looking at Stoke-on-Trent as a potential investment because the returns are attractive compared to the initial price."

Associate director Mike Hancock added: "I don't think we'll see a noticeable decrease in prices this year but equally I don't think there will be any big increases. Prices will be fairly static. It's definitely a good time to buy if you've got the money."

David Lownds, head of risk at the Hanley Economic Building Society, said the fact that mortgage applications were on the up was a sign that more people were looking to buy.

During the first four months of the Hanley's financial year, from September 2011, mortgage applications were up 23 per cent year on year.

Mr Lownds said: "In terms of how they are broken down, 48 per cent have come from local people, up from 43 per cent the year before.

"We're happy with that because it's something we've been trying to do. It goes to show that more people are looking to purchase locally.

"And of course the season hasn't really started yet – the market tends to get going around Easter.

"My personal view is that house prices will continue to fluctuate depending on the confidence in the market but actually, if you've got a five per cent deposit and you're confident in your job, it's a good time to buy.

"What we are also starting to see now is that people are coming to us in a strong position.

"A year ago, we were getting people coming without a deposit. Now they're coming back having saved up in the traditional way.

"We've just done our mortgage sale and had a really good response to that. We had just short of 130 inquiries from local people in four weeks, of which 32 were first-time buyers.

"Our target was £5 million but in total those applications are valued at about £8 million, and we will obviously be looking to get most of that sold."

Call centre manager Nick Gimbert was one such first-time buyer, who wanted to take advantage of the dip in the housing market last year.

The 29-year-old paid £90,000 for a three-bedroom property in Etruria with his partner, Charlie Axman, aged 30. The dad-of-one said: "It was on the market for £100,000 but we got it for £90,000.

"When we moved in, it was very basic, clean and neutral, but the gardens and main living areas can be improved, which will hopefully add value.

"We chose the property because of its location and it means I can walk to work on Festival Park."

Across Staffordshire, the Land Registry's House Price Index shows the average home cost £76,774 in December 2001, a figure which peaked at £151,793 in December 2007 before dipping to £132,255 last December.

In Cheshire East, the average price was £90,531 in December 2001, rising to £171,960 six years later before falling to £150,561 at the end of 2011.

Separate research from Mow Cop research consultancy KVM Research shows that property in North Staffordshire is more affordable than in South Cheshire.

Director Knud Moller said the average advertised house price in Stoke-on-Trent during 2011 was £120,997 – 5.41 times the average annual salary of £22,370. In Newcastle, the average advertised price was £151,712 – 6.52 times the average annual wage of £23,265.

But in Crewe and Nantwich, the average advertised price of £182,505 was 7.41 times the average annual salary of £24,638. In Congleton, the average advertised price was £182,505 – 7.41 times the average annual wage packet of £24,638.

Mr Moller's research also backs up estate agents' views that the area's affordability is becoming increasingly attractive to investors from outside the area.

He said: "If you are buying a property to rent, its profitability can be measured in terms of the rent charged as a proportion of the purchase price of the property. Measured in this way, Stoke-on-Trent is the most profitable area."

The average monthly rent in the city is £473, giving 0.39 per cent profitability when measured against the average advertised price.

In Crewe and Nantwich, the average rent of £552 means profitability falls to 0.3 per cent. In Congleton, the average rent is £642 (0.31 per cent).

Hundreds of homes to buy and rent – don't miss Homes in Thursday's Sentinel.