House prices still 8.8% higher than they were a year ago
Is the housing market slowing as prices show a fall in June?
Now could be the opportune time to sell
Property prices in the UK dropped for the first time since January in June, but house prices are still 8.8% higher than they were a year ago.
Halifax figures show that house prices slipped by 0.5% month-on-month. It’s reported that the average cost of a home is now £1,284 lower than back in May, at £260,358.
Although on an annual basis, property prices are still 8.8%, or around £21,000, higher than a year ago, with the strongest growth shown in Wales, Northern Ireland and the North West of England.
Annual house price growth of 10.9% in Yorkshire
Yorkshire and Humberside saw an annual house price growth of 10.9%, according to Halifax.
Wales leads the way for annual house price growth, showing its strongest performance since April 2005, with prices up by 12 per cent.
House prices in Northern Ireland and the North West of England are up by 11.5 per cent in the past year, while Scotland saw prices increase by 10.4 per cent.
For Northern Ireland and Scotland, the annual price hikes were the highest recorded since late 2007, while for the North West and Yorkshire, price inflation was at its strongest since early 2005.
It’s a different story down south, with the South of England behind somewhat, with eastern England and the South East showing growth rates of about 7%.
London’s property values were up by only 2.9 per cent year-on-year.
Rival lender Nationwide has just reported that its measure of house prices illustrated a 13.4% jump between June 2020 and June 2021; the largest rise in more than 16 years.
So, house prices may have dropped slightly, but they are still significantly up on a year ago, and buyer demand remains high against supply.
Thinking of selling? Now could be the time
The tapering of the stamp duty holiday and end of furlough could dampen the market further, so for anyone thinking of selling now could be the opportune time.
For during the stamp duty holiday, which is continuing in a reduced form, home buyers have been faced with booming property prices, with homes in popular areas being competed for by multiple buyers, driving prices up, often way over asking price.
The ‘nil rate’ stamp duty band went from £500,000 to £250,000 from July 1st, which caused a rush of buyers trying to beat the deadline. This will go back to its normal level of £125,000 from October 1st. So, there are still savings to be made when moving house. You may have missed the first deadline, but with the tapered approach, if you purchase at the current average price of £260,358 you would still only pay around £500 in stamp duty at the rate it stands at today, which will increase to about £3,000 when things get back to normal from the start of October. This is still a significant saving. Think what this extra money in your pocket could mean to you and your family.
It’s predicted that strong buyer demand will remain, as people still look to find properties with more space, which has largely been driven by the increase in time at home caused due to the Covid pandemic.
Not enough properties on the market
There are not enough properties on the market to meet demand and this, combined with the remaining low borrowing rates, will help to keep prices up for the time being.
Looking to the future, the peak in buyer demand is likely to have passed, but any significant change in the housing market looks low. Supply is limited and affordable borrowing will keep buyers in a strong purchasing position, bringing continued demand.
The impacts of an end of the furlough scheme could easily be outweighed by economic growth.
Find out how much your house is worth
All things considered now is a good time to get your house on the market. The first step to this is to find out how much your house is worth. Preston Baker Estate Agents, covering Leeds, York, Doncaster and Selby, would be happy to value your property for you.
You can book a free valuation with us now.
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