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House prices map: 4 areas where property costs are on the rise despite national decline

Posted 19th August 2022 by sdlt-admin

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Read the article on The Express

“The average asking price of property coming to market has decreased for the first time in 2022, according to the latest figures from Rightmove. But while national house prices are falling, some regions are continuing to see a month-on-month increase in the value of properties sold in the area.

Six consecutive months of “record” house price growth have come to an end in the UK, with new data from Rightmove having revealed a 1.3 percent drop in the national average. While the property portal noted that the summertime slump was “expected”, not all regions recorded a decrease in the value of property coming to market. In fact, house prices have increased by more than two percent since July in some areas.

Read: How do I get a Stamp Duty Refund?

Asking prices for UK homes has dropped for the first time this year, bringing the average figure down by almost £5,000.

According to Rightmove’s latest data, the average property selling price now stands at £365,173, exactly £4,795 less than in July.

Despite warnings of soaring interest rates expected to peak at 2.5 percent by the end of the year, house prices are continuing to grow in what has been the typically “cheaper” regions based on data from earlier in 2022.

Where are house prices continuing to rise?

Wales

Rightmove’s August property index showed that Wales recorded the highest monthly increase in average property prices.

Since July, the regional market has seen an increase of 2.1 percent in the value of homes going on the market.

The average price for a property is now £261,117, which is 10.6 percent higher than the figure recorded this time last year.

With the average home taking just 32 days to sell, the Welsh property market is highly attractive for people looking to cash in on their sales in the area.

East Midlands

This region in England saw year-on-year the second highest increase in prices with the average asking price has risen by 1.3 percent since July.

While the price of property is higher than in Wales, this shows a healthy increase in the value of homes area which has often been considered a more affordable place to purchase a house.

The year on year change is up by a staggering 11.6 percent compared to August 2021.

According to Rightmove, the average value of property on the market is now £288,430 in this region.

North West England

While the monthly growth was below one percent, this region is still just one of four that recorded a rise despite the national decline in property value.

Since July, property prices have increased by 0.4 percent.

This is a 10 percent rise since August 2021, with the average home now costing £251,402 to purchase in the area.

Read: How much Stamp Duty do I pay on a second home?

West Midlands

The West Midlands recorded the same 0.4 increase as North West England this month, with the average property value now at £288,722 when coming on the market.

Since August 2021, this figure has risen by 11.4 percent.

Alongside their data, Rightmove noted that the national decline in asking prices was largely in line with summer price trends over the past decade and would likely recover once house hunters returned from holiday breaks.

Their data predicts that UK house prices will still end up being seven percent higher than 2021, despite a looming economic recession and rising living costs.

David Hannah, Group Chairman at Cornerstone Tax said: “Whilst I do believe the impact of rising interest rates will gradually start to affect prices, we also have an open market in the UK which means not only are domestic purchasers and investors looking to buy, but we also have inbound investors.

“This means that even if demand cools domestically, international buyers could contribute to keeping prices high.”

According to a leading property association, the £5,000 dip in house prices is more of a “slowdown” in the market rather than a worrying drop.

Have you purchased UK property that you paid Stamp Duty Land Yax on? See if you are eligible for a refund from HMRC on overpaid SDLT

We’ve reclaimed over £15 million in the last 12 months on overpaid Stamp Duty.

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