House Prices Cooled In July – What Next For You?

16th August 2021 posted in PROPERTY NEWS

After a monumental time in the property market, it might be time for things to slow down with respect to property. This doesn’t mean that you should, or shouldn’t, move soon, but it is important to stay up to date with what is happening in the national and local housing market.

At Country Properties, we aim to keep you fully informed, and when it comes to Baldock property, we are here to help you make an informed decision.

Annual house price growth slowed down

In the most recent figures provided by Nationwide, some of the key highlights are:

·       Annual house price growth was 10.5%

·       This is down on the previous month’s figure which was 13.4%

·       In month-on-month terms, house prices fell by 0.5%

·       This comes after a 0.7% rise in June

·       The average price of property across the nation stands at £244,229

For a more local look, Rightmove classes house prices in Baldock, as of the start of August, as;

Properties in Baldock had an overall average price of £353,455 over the last year.

The majority of sales in Baldock during the last year were terraced properties, selling for an average price of £338,240. Semi-detached properties sold for an average of £366,318, with detached properties fetching £518,036.

Overall, sold prices in Baldock over the last year were 10% up on the previous year and 11% up on the 2018 peak of £318,950.”

Many experts predicted this change

Robert Gardner, Nationwide's Chief Economist, said: “The modest fallback in July was unsurprising given the significant gains recorded in recent months. Indeed, house prices increased by an average of 1.6% a month over the April to June period – more than six times the average monthly gain recorded in the five years before the pandemic.”

There is no doubt the tapering period of stamp duty impacted the market, something which Robert Gardner discussed further. He said; “The tapering of stamp duty relief in England is also likely to have taken some of the heat out of the market. The nil rate band threshold decreased from £500,000 to £250,000 at the end of June (it will revert to £125,000 at the end of September). This provided a strong incentive to complete house purchases before the end of June, especially for higher-priced properties. For those purchasing a property above £250,000, the maximum stamp duty saving reduced from £15,000 to £2,500 after the end of June."

Another interesting factor in the recent figures comes with the property types that are in demand. In the past six months, the proportion of sales involved semi-detached and detached properties have grown while flats are less popular with buyers.

Robert Gardner also said; “Shifting housing preferences appear to have been the more important factor in driving the increase in housing market activity, with people reassessing their housing needs in the wake of the pandemic. At the end of April, 25% of homeowners surveyed said they were either in the process of moving or considering a move as a result of the pandemic.”

If you are looking to move in, out or around Baldock, we are here to assist you. Get in touch, and we will be more than happy to offer guidance and support.

In line with Government guidelines, our Baldock Branch is open and our experienced team is working hard to support you.  To clients old and new, if you have any queries or need advice on property sales and lettings then please call 01462 895061 or 01462 742077, or you could email baldock@country-properties.co.uk  or ashwell@country-properties.co.uk