13th March 2015
The average home is now worth £34,000 more than it was at the height of the housing boom in February 2008.
Purchasing a property now costs an average of £273,528, a total of £34,192 more than it would have cost in February 2008 –the peak of the property boom. Over half of the value, £17,340, has been added in the past year as property rose an average of 6.8% in the year.
Adrian Gill, director of Reeds Rains and Your Move estate agents, said that while property is ‘performing well be yesterday’s standards’ we have ‘got to keep an eye on the trajectory of our current recovery’.
‘Average house prices are currently 6.8% higher than they were last year – but this is the smallest annual increase witnessed for fourteen months, as the market mellows from the extraordinary noise of the past year. So far in 2015, completed home sales are 9% lower than over the same period twelve months ago, but demand hasn’t faded out of view. February still makes a 4% improvement on January activity levels, and in recent weeks we’ve seen agreed sales climb above 2014 levels, as activity comes into focus.’
Property prices have cooled in London from their peak in July 2014. The growth gap between London and the South East and the rest of England and Wales was 5.4% last summer but has fallen to less than half that today at 2.2%.
The reason for the cooling has been blamed on increased stamp duty for expensive properties and the fear of a mansion tax.
‘The capital has already had the first taste of added pressure placed on prime property in the form of revised stamp duty and the £1.5 million to £5 million slice of the market has also been hit by cold feel in the run up to the general election, with the threat of a potential mansion tax,’ said Gill.
‘This let-up of high-end activity has brought down the average London house price, but beneath the surface, te lower rungs of the ladder are thriving.’
Gill gave the example of Newham, where the typical value of a property is £273,727 saw a 2.1% monthly price rise.
‘In the south of the country overall we’re seeing a very orderly market, with buyers and sellers on more of an even keel. Rates of annual growth have slowed across the board in England and Wales, but it is regions with the lowest average property prices which are dragging their feet,’ he said.
‘The North saw the smallest annual uplift in January, with home values just 1.9% higher year-on-year, while in Yorkshire and the Humber prices stagnated over the month.’