While house prices are still growing, it shouldn’t be a surprise to learn that there is a slowdown in the rate of increase. Given everything that is happening in the economy, this indicates the robust nature of the housing market.
At Urban BASE, we are North East housing market specialists, and we are on hand to help you. We know the local market well, and we stay in touch with the latest findings and studies from market specialists. If you want to make an informed decision, rely on us to assist you.
Robert Gardner, Nationwide’s Chief Economist, comments: “In September, annual house price growth slowed to single digits for the first time since October last year although, at 9.5%, the pace of increase remained robust. Prices were unchanged over the month from August, after taking into account seasonal effects. This is the first month not to record a sequential rise since July 2021. There have been further signs of a slowdown in the market over the past month, with the number of mortgages approved for house purchase remaining below pre-pandemic levels and surveyors reporting a decline in new buyer enquiries. Nevertheless, the slowdown to date has been modest and, combined with a shortage of stock on the market, this has meant that price growth has remained firm.”
Stamp duty changes are in effect
According to the Government website, the changes are as follows:
- The measure increases the residential nil-rate tax threshold from £125,000 to £250,000.
- The nil-rate threshold for First Time Buyers’ Relief is increased from £300,000 to £425,000 and the maximum amount that an individual can pay while remaining eligible for First Time Buyers’ Relief is increased to £625,000.
- The measure means that all individuals purchasing residential property on or after 23 September 2022 will pay less or no SDLT.
Robert Gardner from Nationwide also spoke about these changes, and the likely impact on the housing market, saying; “By lowering transaction costs, the reduction in stamp duty may provide some support to activity and prices, as will the strength of the labour market, assuming it persists, with the unemployment rate at its lowest level since the early 1970s. However, headwinds are growing stronger suggesting the market will slow further in the months ahead. High inflation is exerting significant pressure on household budgets with consumer confidence declining to all-time lows. Housing affordability is becoming more stretched. Deposit requirements remain a major barrier, with a 10% deposit on a typical first-time buyer property equivalent to almost 60% of annual gross earnings – an all-time high.”
The North is doing well
Robert concludes: “Within northern England (which comprises North, North West, Yorkshire & The Humber, East Midlands and West Midlands), the East Midlands was the strongest performing region with price growth picking up to 12.3% year-on-year, from 11.4% in the second quarter. London remained the weakest performing UK region, although did see a modest pickup in annual price growth to 6.7%, from 6.0% last quarter.”
These findings are not a surprise to us, and we believe there are significant reasons to invest in property across the North East of England. We represent many towns and cities across this region, and we are pleased to bring buyers and vendors together. If you are looking for guidance in the North East housing market, please let us know, and we will be more than happy to assist you.
Contact Urban BASE for all your property market needs
If you would like to arrange an appointment to discuss your next move in the property market, we are always happy to help. Call us on 0845 6431186 today.