The past twelve months have been a turbulent time for the property market, with average house prices in the UK fluctuating and stamp duty being halted in a bid to help keep the market afloat during the pandemic.
However, with the end of the stamp duty holiday, UK property news reports that the average house prices in the UK have dropped for the first time in twelve months, with Rightmove reporting the recent average house price dropping by 0.8% in August.
There is no singular reason for the lowering of the average house price. Instead, it can be put down to a number of factors:
With more and more people seeing the benefits of home working and with the future uncertain on whether commuting to city centres will be necessary for the future, many people are looking to purchase houses further away from cities, and close to commuter belts. The focus has evolved to buying homes that provide better home working conditions.
With the property market's future being thrown into disarray when the Covid-19 pandemic first hit, the stamp duty holiday introduced by Rishi Sunak saw the removal of stamp duty payments on the first £500,000 spent on a property. This, of course, prompted many people to go on the hunt for properties in the hopes that investing during the pandemic would reap dividends in years to come. However, with the mad rush that came at the end of June as people rushed to complete purchases, things have expectedly slowed down.
Regardless of the Covid-19 pandemic, August sees a lull in housing prices every year, with people concentrating on summer holidays rather than buying houses. However, reports show that buyer interest has remained strong this year, with more and more people making enquiries throughout the summer holiday season.
One of the main causes for the average house prices in the UK dropping is the lessening demand for larger houses. Reports show that interest in bigger properties (particularly 4-beds) has cooled off massively, whilst interest in smaller two-bedroom properties has seen a steep increase in interest. This is believed to be due to more first time buyers looking to purchase.
As many people choose to move away from big cities such as London and Birmingham, we've noticed a steep interest in people looking to relocate to areas throughout Kent. In particular, many people have begun to flock to towns like Sittingbourne, Chatham and Gillingham. As a result, Rightmove has posted figures that show that the average house price has increased by 9% in the past year. So, if you're looking to purchase or sell in the area, now is the time. Are you looking to purchase in the Sittingbourne area and take advantage of the UK's new lower average house prices? Speak to one of our property experts today by booking a free consultation, and we'll help guide you towards your next new home.