11th
Dec 2024
A positive Halifax house price index has revealed impressive capital appreciation in some regions, with annual increases reaching up to 6.8%.
Northern Ireland has continually recorded the highest property price increases of any nation or region in the UK, rising by 6.8% on an annual basis in November, with an average property price of £203,131.
House prices in Wales also recorded strong growth, up 4.1%, compared to the previous year, with properties now costing an average of £225,084.
The North West of England recorded the highest growth within England, with a 5.9% annual increase with properties now averaging £237,045.
Properties in the West Midlands experienced robust growth, with prices increasing by 5.5% annually, bringing the average house price to £257,982.
True to form Scotland, saw an incremental increase in house prices when compared to the rest of the UK, with the average property costing £208,957, a 2.8% rise from the previous year.
London continues to hold the highest average house price in the UK at £545,439, reflecting a 3.5% rise compared to the previous year.
An estate agent and a former RICS residential chairman, says: “The market is showing its teeth, despite the extra Budget taxes in particular reducing the likelihood of early cuts in mortgage cuts and prospect of slower wage growth. Demand continues to be strong, particularly for competitively-priced homes in lower-value areas.
“However, investors hit by higher buying costs are proving unwilling or unable to take on typically smaller one- and two-bedroom homes.
“On the other hand, confirmation that the stamp duty concession will not be extended has given an opportunity to first-time buyers, especially of such properties, to take advantage. That has also given a lift to the rest of the market by releasing second-steppers and connecting chains.”
Alice Haine from an investment platform attributes some of the significant increases to first-time buyers rushing to complete purchases before the stamp duty rises, which will take effect after the April 2025 deadline.
She says: “It means property prices are likely to rise in the run-up to the deadline as buyers and sellers race to beat the tax hike.
“Beyond the start of April, the market is likely to be more muted as buyers choose to purchase cheaper homes to reduce their tax bill or negotiate more aggressively to afford their desired property. There is also the sting in the tail for second homeowners and buy-to-let landlords who are already contending with the hike in the property tax on second property purchases, which came into effect immediately [after the October Budget].”
News Archive »