Annual house price growth sped-up to 11% with the average home now costing £248,857 according to the Nationwide building society. Last month saw the second largest month-on-month rise in 15 years. This comes as slightly unexpected news given that the benefit from the stamp duty holiday was reduced.
At the end of June, stamp duty holidays became less generous in parts of the UK. Many thousands of deals were rushed through to beat the deadline. The Nationwide’s chief economist, Robert Gardner, said there was strong demand from those buying a property priced between £125,000 and £250,000, as there were still some stamp duty savings in parts of the UK.
With house prices still rising, and with the stamp duty holiday reduced, it is a clear sign that it wasn’t solely the stamp duty holiday that was the driving factor behind the recent property boom. Other factors such as low interest rates and the ‘Lockdown Effect’ – the need for home office space and more garden space – have had a huge effect on the property market and will continue to do so over the next year.
And with a continued shortage of homes in most areas, combined with sustained demand by buyers, expect the annual price to grow again towards the end of the year. In fact, Rightmove reports that homes are selling faster than ever when they come to the market, which is leading to a strong incentive for owners to sell before they buy so they are in the best position possible when the right property comes along.
So far in 2021 house prices have risen every month, however, for the first time this year they have actually fallen by £1000. Which brings the average asking price of a home in Britain to £337,371 according to Rightmove.
There is a caveat though. It is only larger homes, those with five bedrooms plus, and four-bedroom detached houses that have dropped in price. Which possibly points to the impact of the end of the Stamp Duty Holiday, as it was these families which were saving the most on stamp duty. Also, it could be the effect of the summer holidays, which tend to be quieter than the rest of the year.
Properties in Rugby had an overall average price of £274,181 over the last year.
The majority of sales in Rugby during the last year were semi-detached properties, selling for an average price of £246,674. Detached properties sold for an average of £373,451, with terraced properties fetching £204,808.
Overall, sold prices in Rugby over the last year were 5% up on the previous year and 6% up on the 2018 peak of £258,474.
Properties in Lutterworth had an overall average price of £315,706 over the last year.
The majority of sales in Lutterworth during the last year were detached properties, selling for an average price of £366,854. Semi-detached properties sold for an average of £236,919, with terraced properties fetching £226,890.
Overall, sold prices in Lutterworth over the last year were 11% up on the previous year and 15% up on the 2018 peak of £274,347.
Properties around Kenilworth had an overall average price of £445,201 over the last year.
The majority of sales around Kenilworth during the last year were detached properties, selling for an average price of £614,153. Semi-detached properties sold for an average of £379,596, with terraced properties fetching £322,606.
Overall, sold prices around Kenilworth over the last year were 10% up on the previous year and 14% up on the 2018 peak of £391,947.
Properties around Worcester had an overall average price of £269,948 over the last year.
The majority of sales around Worcester during the last year were detached properties, selling for an average price of £376,881. Semi-detached properties sold for an average of £240,045, with terraced properties fetching £215,024.
Overall, sold prices around Worcester over the last year were 8% up on the previous year and 12% up on the 2018 peak of £241,173.