November 29, 2022 | Mariel Roe
As the cost of living crisis worsens and UK inflation hits a record high of 11.1%, is it all doom and gloom and what does this mean for the UK housing market? Read on to find out everything you need to know.
In some good news, Chancellor, Jeremy Hunt has confirmed in his Autumn Budget that stamp duty cuts are to remain in place until March 2025, just weeks after his predecessor, Kwesi Kwarteng, announced they would be cut permanently.
From March 2025, the threshold at which stamp duty is paid will drop from £250,000 to £125,000, while for first-time buyers, this threshold is up from £300,000 to £425,000. Experts have said the current stamp duty cut is unlikely to have a big impact on the housing market when mortgage interest rates are so high.
The announcement around stamp duty wasn’t the only one that will affect homeowners, with the Chancellor also announcing an increase in the energy price cap and a potential change to council tax rates.
Just weeks after announcing that typical household energy bills were to be capped at £2,500 per year until April, the Chancellor has revealed an increase to £3,000 per year from that point for 12 months.
While the new cap is less generous, it does at least give households some clarity on their likely energy bills until April 2024, and it’s far better than the £5,000+ annual energy bills that were being mooted just a couple of months ago before the government intervened.
The other big news concerning homeowners was an announcement that local authorities can increase council tax by 5% without a vote. Previously, any increase over 3% had to be approved by a local vote, but the Chancellor’s announcement has removed that requirement, and treasury officials are expecting 95% of local authorities to use the full 5% increase when announcing their new rates.
Leading property website, Rightmove, has reported that UK house prices have fallen 1.1% this month, which is only the second time this year that prices have dropped.
The average house price is currently £366,999, down £4,159 from October’s figure of £371,158.
The drop in prices is in line with the usual trend at this time of year, with many sellers willing to price their property more competitively in the hope of finding a buyer before the new year.
Despite the drop though, average prices remain 7% higher than at the same stage in 2021.
According to the government’s official forecaster, UK house prices are set to fall for the next two years, before seeing a rise again.
Between now and the Autumn of 2024, The Office for Budget Responsibility (OBR) predicts that prices will drop by around 9%, before slowly increasing again from 2025.
The news will be welcomed by many potential first-time buyers, although given the current economic climate, the OBR’s prediction is fraught with uncertainty.
Figures released by property portal, Rightmove, have revealed new record rental costs, with the monthly UK average being £1,162 – an 11% increase in the past 12 months.
While average rents are up 11% nationwide, the areas with the biggest increases have also been revealed, with Newbury in Berkshire being the biggest climber. Rents there have soared by a staggering 22.2% in the past 12 months. The only other part of the country with a 20%+ increase is Manchester, where rents have increased 20.5%, although the Welsh capital Cardiff isn’t far behind at 19.6%.
The surge in prices is being largely driven by an increase in demand, with 20% more renters in the market for properties than 12 months ago.
The good news for renters though, is that the number of properties on the market has increased across the UK, with London being the only exception.
If you’re a film buff who’s on the hunt for a new home, you might want to check out this 3-bedroom flat.
That’s because it sits above the bookshop from the iconic British rom-com, Notting Hill. Much of the 1999 film, which starred Hugh Grant and Julia Roberts, was shot in the area which shares its name, and the flat is on one of London’s best-known streets, Portobello Road.
The flat is set over three floors, and it’s on the market for a cool £2.375 million!
For more property news and updates and a more detailed overview of the London area, get in touch with Properly.
We are your local property experts. Call us on 0207 459 4400 or email firstname.lastname@example.org.
London Youth work to improve the lives of young people in London, challenging them to become the best they can, and last year helped over 27,000 young people through their sports development, youth action and involvement, arts and outdoor education programmes and employment prospects. We feel strongly that all young people should have an opportunity to develop themselves, and so are delighted to be able to support London Youth in their work, providing young people with access to opportunities they might not otherwise have had, to learn new skills, to make a positive change in their communities and to shape the city they live in.
Glass Door helps homeless men and women in London through their large network of emergency shelters and support services. These winter shelters provide a warm welcome, food, safety and shelter for up to 170 people every night. Properly feels passionately about the issue of homelessness. That is why we are delighted that together with our clients we can assist Glass Door in their fantastic work to help some of the most marginalised people in society.
Families become homeless for reasons we can all identify with. We are concerned about people who are struggling to keep things together in our fast-paced world – and we care about those who have no support. We chose the Doorstep Homeless Family Project because they are passionate and effective yet they are a small team with limited funding. They provide homeless families, living in temporary accommodation in London, with access to services to secure the emotional and practical support they require to enjoy a better quality of life.
We need nature and nature needs us. We support The London Wildlife Trust because we share its concern for the environment. We want to ensure that we keep nature in mind as we work in the property market – and crucially, with people’s homes. We also want our employees to engage with nature and benefit from the wellbeing this brings. London Wildlife Trust cares for over 37 of London’s spaces, and their vision is: “a London alive with nature, where everyone can experience and enjoy wildlife”.
Mariel and Michael have been absolutely great, by far my best ever experience with an estate agent. Properly is honest, upfront and friendly, responding really quickly to any and all queries and with a lovely personal touch.
The level of customer service I received at Properly with Mariel and her team was frankly outstanding. It’s lovely when people genuinely care and go the extra mile which certainly they did. I couldn’t recommend them more highly, the most pleasurable property experience ever for me.
Mariel helped me sell my apartment in West London. She was always there when I needed her. Her advice was invaluable and made everything a whole lot easier. I can’t recommend her highly enough.
Had Michael round for a valuation of our flat – very knowledgeable and friendly and wasn’t pushy at all. When it comes time to sell we’ll definitely be giving Properly a call!
Both Michael and Mariel were extremely helpful with our questions going forward whether it be regarding referencing or the property itself. Definitely not the usual estate agent experience (in a good way) and I would recommend Properly to anyone.
Michael and Mariel have been very helpful from the time I contacted them on a property I was interested to rent and through the offer process. Mariel did a wonderful video call showing of the house since I was not in London at the time. I felt completely comfortable to sign the lease from the video call. Thank you Mariel!
Mariel and Michael made the process of agreeing a housing let incredibly seamless, stress-free and quick. Their timely communication and fantastic ‘customer service’ was second to none. Would highly recommend
I was very impressed with the service I received. Communication throughout was very good. I have dealt with many agents, but the clear, concise and personable approach I received made Properly stand out. I wouldn’t hesitate to use them again.