October 24, 2022 | Mariel Roe
Mortgage rates, house prices, and average rents have hit new highs, while stamp duty has been cut in the government’s mini-budget (one of the few changes to remain after Kwasi Karteng’s sacking and the appointment of Jeremy Hunt as the new chancellor), and a property with a place in TV history is on the market! Read on for all this and more in your October property market update.
New figures have revealed that fixed-rate mortgages are at their highest levels for 14 years, with hundreds of thousands of homeowners facing a steep increase in monthly repayments when their current fixed rates finish in the coming months.
Average fixed rates for two and five-year mortgages are currently at 6.65% and 6.51% respectively, with interest rates expected to rise again in November to try and curb inflation, which is currently at 10.1%.
The sharp increase in rates is partly due to the government’s mini-budget announcement in September, which sent the financial markets into a frenzy, but with most of those policies having since been reversed and with a new government set to be in place by the end of October, there’s some hope for mortgage holders that rates may drop again.
Despite rising interest rates, inflation, and cost of living increases, average asking prices have risen to a record high in the UK.
Figures released by the property website, Rightmove, have revealed that the average asking price in October was £371,158, a small increase on the previous month.
While the increase might be a surprise to some given the current economic climate, demand for property continues to outweigh supply, giving sellers confidence they can achieve their full asking price.
Asking prices are predicted to drop slightly in November and December, in line with seasonal demand, however, predicting prices for the new year and beyond is impossible for forecasters due to the current political and economic uncertainty in the UK.
In welcome news for home-buyers, and particularly first-time buyers, the government’s recent changes in stamp duty have been confirmed by the new Chancellor.
As part of the government’s mini-budget on 23rd September, then-Chancellor Kwasi Kwarteng announced a raft of tax cuts, many of which have since been reversed by his replacement, Jeremy Hunt.
However, the change in stamp duty was one of the only cuts to be kept in place. The change means that stamp duty tax isn’t payable on properties over £250,000 – an increase on the previous threshold of £125,000. For first-time buyers, the threshold for paying stamp duty is £425,000.
The changes mean that movers will save up to £2,500, while for first-time buyers the savings can be as much as £11,250.
Since the new Chancellor’s announcement that stamp duty changes would be kept, Prime Minister Liz Truss has resigned, so there may be another shift in policy when a new government is announced in the coming weeks.
Rents in the capital have hit new highs, with the average property costing £553 per week. The previous high was set in June when prices hit £549 per week, and data from various estate agents in the capital suggests that each property has twenty-nine renters competing for it on average.
This soaring demand has led to bidding wars, auctions, and even demands of up to 12 months’ rent in advance from some landlords.
The increase in demand can be attributed to a number of factors, including a return to city living post-COVID, and a rise in the number of renters delaying buying plans as they wait for volatile mortgage rates to settle down.
If you’re a TV sitcom fan and in the market for a new property, you might want to take a look at the picturesque village of Turville in Buckinghamshire for your next home.
That’s because a pretty two-bedroom cottage has gone up for sale, which was used as the primary setting for The Vicar of Dibley.
The show, which starred Dawn French, was one of the most popular sitcoms in the UK between 1994 and 2007, and the cottage featured prominently throughout the show’s 20+ episodes.
Other scenes from the show were also filmed around the village, which has also been used as a filming location for major shows like Goodnight Mr Tom, Midsomer Murders, Killing Eve, and Chitty Chitty Bang Bang.
The cottage has an asking price of £695,000, and you’ll find all the details here.
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 at 0207 459 4400 or email email@example.com.
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.
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.
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.
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.
Amazing people, responsive, honest, friendly and professional. Cannot fault them and the type of company, you will go back to again and again.
We had the opportunity to interact with Michael of Properly in our search for a new rental flat. Michael was professional and courteous in our dealings with him. He was a pleasure to interact with and he frankly stood out amongst all the agents we interacted with over a search of several weeks.
I was so pleased to be introduced to Properly. Mariel and Michael provide an excellent service that took the stress and hassle out of finding a tenant. They were a pleasure to deal with, efficient and fast. A marked difference from the hidden costs and poor communication often encountered from other high street estate agents. I would thoroughly recommend and happily use again!
I cannot recommend this estate agent enough. Michael and Mariel have been very good to us throughout the process and have made sure everything has been as smooth as possible. They have gone above and beyond to ensure everything was dealt with and in a timely manner too. A great experience throughout!