Despite the cost of living crisis average house price nears £300,000
According to the latest HM Land Registry data property prices increased by an average of 0.9% in August to reach £295,903, writes Zah Azeem, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
Despite UK house prices increasing between July and August 2022, annual growth has slowed because of the sharp rise in house prices in August 2021 following changes in the stamp duty holiday. Average house prices increased over the year to £316,000 (14.3%) in England, to £220,000 in Wales (14.6%), to £195,000 in Scotland (9.7%) and to £169,000 in Northern Ireland (9.6%).
What’s interesting is how opinion diverges about whether house prices will fall in future. NatWest and Lloyds bank recently reported they could fall as much as 8%. Frankly, with supply being as scare as it is – and certainly here in Wimbledon – I think that’s just scare mongering to try and persuade the bank of England not to put interest rates up further in November.
Quoted here Chris Druce, senior research analyst at Knight Frank, said: “The economy has covered a lot of mileage since August. Even so, a 13.6% increase in annual house prices is indicative of the distortions caused by the stamp duty holiday, the main part of which ended in June 2021 and artificially depressed transactions volumes in the months after.
“With inflation returning to a 40-year high of 10.1% today, it remains a question of how much the Bank of England raises interest rates by next week, not if.
“With rates having accelerated further since the government’s mini-budget last month, current activity in the housing market is being shaped by mortgage status. Those that can are pushing on and securing deals ahead of further increases, while others have paused plans to digest events.
“With affordability set to be a growing barrier for many homebuyers in the coming months, we forecast house price growth will slow from here with price falls in 2023.”
If you would like to discuss something related to a property valuation, please contact me direct via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.
Despite the cost of living crisis average house price nears £300,000
According to the latest HM Land Registry data property prices increased by an average of 0.9% in August to reach £295,903, writes Zah Azeem, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
Despite UK house prices increasing between July and August 2022, annual growth has slowed because of the sharp rise in house prices in August 2021 following changes in the stamp duty holiday. Average house prices increased over the year to £316,000 (14.3%) in England, to £220,000 in Wales (14.6%), to £195,000 in Scotland (9.7%) and to £169,000 in Northern Ireland (9.6%).
What’s interesting is how opinion diverges about whether house prices will fall in future. NatWest and Lloyds bank recently reported they could fall as much as 8%. Frankly, with supply being as scare as it is – and certainly here in Wimbledon – I think that’s just scare mongering to try and persuade the bank of England not to put interest rates up further in November.
Quoted here Chris Druce, senior research analyst at Knight Frank, said: “The economy has covered a lot of mileage since August. Even so, a 13.6% increase in annual house prices is indicative of the distortions caused by the stamp duty holiday, the main part of which ended in June 2021 and artificially depressed transactions volumes in the months after.
“With inflation returning to a 40-year high of 10.1% today, it remains a question of how much the Bank of England raises interest rates by next week, not if.
“With rates having accelerated further since the government’s mini-budget last month, current activity in the housing market is being shaped by mortgage status. Those that can are pushing on and securing deals ahead of further increases, while others have paused plans to digest events.
“With affordability set to be a growing barrier for many homebuyers in the coming months, we forecast house price growth will slow from here with price falls in 2023.”
If you would like to discuss something related to a property valuation, please contact me direct via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.
