Will house prices continue to rise

House Prices Continue to Rise as Much as Buyers

In August of this year, house price inflation jumped up to 10.6 per cent from 8.5 per cent just a month prior, seeing buyers frantically rushing to beat the stamp duty holiday end. But will house prices continue to rise?

Is It Higher or Lower?

The Government’s Office for National Statistics released data figures showing that average house prices throughout the UK have now reached £25k higher than the same period 12 months earlier – now reaching £264k.

Further up north in Scotland saw the highest annual growth on prices by 16.9 per cent, coming in at an average of £181k whilst houses in Wales followed suit with a rise of 12.5 per cent to an average of £195k. Following these areas were England with a 9.8 per cent rise to £281k, and Northern Ireland with a 9.0 per cent to £153k.

In London, there was the lowest annual growth for the ninth month in a row with prices rising just 7.5 per cent annually, but monthly basis prices jumped 5.6 per cent in August alone in the capital.

A Brief Pause

This is seen as further evidence that the drop in property prices at the end of the initial stamp duty holiday deadline was a brief pause within the surge of positive market momentum. At this point, there is little to no sign of letting up and should an increase in interest rates materialise, it is in all likelihood that it will be acceptable for average homebuyers in today’s marketplace.

As things look for this moment in time, the appetite for homebuyers, first-time buyers and second buyers is looking strong to continue strongly into 2022.

North West Pushes Through

Will house prices continue to rise? The North West is continuing to see increases in activity for those seeking to buy property in Stockport, with many first-time buyers actively seeking the more centralised area with easy access to both country and city areas. With many sellers now getting above asking prices on properties they are selling, the northwest has become the hotbed for eager first-time buyers, people looking to upscale and southerners looking to relocate to more rural areas.

As interest continues to grow in the Stockport housing market, so too does the work at Joules Estate Agents Stockport, the number one independent agency for advice on renting a house, how to sell a house and the first stop for many to buy property in Stockport.

Contact the team at Joules today for any steps on buying or selling a home in the Stockport area.

Read More

will interest rates rise

Will House Sales Suffer From Interest Rate Rise?

With so much happening in the housing market of 2021 throughout the UK, many are left wondering, will interest rates rise shortly – and with the Bank of England currently seeking to control resurgent inflation, the outlook is that it will be affirmative.

This means that there is also a small opportunity window for buyers and sellers to get their deals done ahead of the BoE acting. Rates have remained low over the past decade, dropping from 5.0 to 0.5 after the 2008 financial crisis. When the Brexit vote destabilised the economy in 2016, the rate went half again to 0.25 per cent.

The unanimous vote is in

This was all before Covid taking its effect on the market. In September 2021, the BoE Monetary Policy Committee threw up a unanimous vote to keep the interest rate at 0.1 per cent, setting a record low.

Now, a likely rate rise is expected later in 2021 or early 2022 which is expected not to stop the housing market momentum – but slow it.

The latest housing market report has showcased that asking prices have surged over last month’s record, jumping to an average of 1.8 per cent. This equates to the highest percentage monthly rise for this part of the year since 2015.

The number of sales agreed upon was up by 15.2 per cent in September, this was against the 2019s normal market comparison. This is also the first time since 2007 that all market sectors and all regions of Britain have hit new record price highs over the same month.

Robust Activity

The continued fast turnover of property for sale and opportunity windows to buy before potential interest rate rises are seemingly overcoming the final expiry of the stamp duty holiday incentive deadlines and are keeping activity robust.

Although more and more properties are making their way onto the market on a month by month basis, the level of stock replenishment is still not enough against the amount being snapped up currently.

Following the first lockdown was the advent of stock shortages, and at this time in 2021, they are set to continue due to the underlying housing market fundamentals remaining as strong as ever, as well as additional incentives to buy and fix your mortgage interest rates before the impending rate rise.

Will interest rates rise? Mortgage interest rates at this time are still lower than they have ever been before and lenders, with employment and wage growth also robust, are extremely keen to lend in the competitive market.

For interest in how to sell a house or wanting to buy property in Stockport, talk to the trusted team at Joules estate agents Stockport today.

Read More

housing market forecast 2022

Housing Market Remains Strong for the 2022 Calendar

Whilst many are trying to secure their keys and others hoping to sell theirs before Christmas, it is good to know that the housing market forecast 2022 still holds strong for the North West, with average house prices higher than they have ever been in September.

Whilst the end of the stamp duty holiday and the desire for homebuyers to close deals at speed has played a part in the rising figures, it is also important to remember that the majority of mortgages agreed in September would not have been completed before the tax break ended.

Race for Space

Multiple factors have played their part in house price developments during the pandemic. The large ‘Race-for-Space’ saw those seeking changes to their lifestyles and preferences have a huge impact on the housing sector.

Over the last year, prices on flats have gone up 6.1 per cent in comparison to semi-detached properties at 8.9 and detached at 8.8. The cash increases translate to a figure of nearly £41k for detached against just £6,640 for flats.

2021 has been the most chaotic and unpredictable year for both buying and selling homes, with uncertainty and demand still outweighing the supply as we stand. In June, the sudden urge and rush to buy before the end of the stamp duty holiday deadline had seen congestion and slowing of the home buying process frenzy.

Autumn Outlook

With the majority of 2021 behind us, many are expecting the autumn to make way for things to gradually return to normal for home moving. Against the backdrop of rising living costs and tax increases, the demand for housing may see a slowing over the next few months, but determining the future of house prices remains the limited number of properties available on the market.

This year has seen many surprises for the team at Joules estate agents Stockport, with sales not only increasing at a dramatic rate but some offers flying through for properties that are almost immediately listed.

Those actively seeking to buy property in Stockport are not only trying to beat everyone else in the area from first-time buyers to second home hunters from laying hands on that priceless set of keys but also buyers from inner-city areas such as London and Birmingham looking for more rural escapes following last year’s lockdowns.

A Better Outlook

The good news for those looking to buy property in Stockport is that more properties will continue to become available into 2022. Whilst some people will use the seasonal break to put their househunting on the sidelines in favour of an ability to get away over Christmas and new year (which was not on the cards the year previous), it gives an opportunity for an area of catch up for those looking to list their properties over the winter period for a new year rush.

Whilst many media outlets let scaremongering take centre stage for sensationalism, the market is still strong and has just as good an outlook for the housing market forecast 2022. If you need knowledge and experience in how to sell a house or to buy property in Stockport, contact the team at Joules today.

Read More

purchasing a second home

Are Second Homes to Continue an Increase?

One of the more surprising rises in popularity over the last year is the frantic pace wealthy families have been in to, which is purchasing a second home. The holiday home boom that was established after the first lockdown of 2020 is still in effect, as currently more and more buyers are open to the attraction of a second home.

Higher Transactions

The number of transactions liable for the second home three per cent stamp duty surcharge hit a new high of 84,700 in this year’s second quarter. Whilst this number includes buy to let investors taking advantage of the stamp duty holiday, it remains the single largest quarterly figure since 2016 when the Higher Rates for Additional Dwellings surcharge was introduced.

This has been something that has been happening nationally, with reports that people down south look for second homes in the North West countryside or rural areas, taking full advantage of this point in time and the availability of affordable housing.

Trigger Effect

The trigger effect happened during the first global lockdown where wealthy families were not permitted to travel to any destination that they would usually take for seasonal breaks. Their lack of freedom and movement created an urge to have somewhere to retreat to the outside of their current environment.

The sudden realisation that working from home would now become so easy to onboard suddenly made families realise it could be done from anywhere, with freedom not to have to travel into the city to attend meetings and use online video platforms moving forward. This had a dramatic change on their lifestyle ambitions in the ability to purchase a second home to switch between and receive the best of both worlds.

Second-home purchases outside of London increased by 83 per cent in 2021s first eight months, with a large percentage looking to buy property in Stockport, rural Manchester or Cheshire areas.

Greener Pastures

The appeal of greener pastures in the countryside has many families wanting to shift focus there for a second home, feeling that if a pandemic was to have another round and international travel be suspended again, there would still be enough of a change between properties to feel like a getaway.

Estate agents Stockport are seeing many enquiries for second home purchases, racking up against the increased demand from first-time buyers and people looking to upscale to bigger properties or get off the rental market. Racing against the supply of housing currently available on the UK market, now the housing market is seeing dead heat races to secure housing well into next year.

For those looking to buy property in Stockport, looking at how to sell a house, or wanting to purchasing a second home, contact the team at Joules Estate Agents today.

Read More