Property Prices Reaching New Highs

Even though we are highly experienced at Williams of Petersfield, it is fair to say the current housing market continues to surprise people.

Recent prices in the market

According to the Halifax, house prices reached a record high in February 2022, standing at £278,123. Property prices were also recognised as increasing at their fastest annual pace of growth in 15 years.

The rate of house price growth as of February 2022 stood at 10.8%, the strongest level since June 2007, when it stood at 11.9%.

Seven parts of the UK are witnessing double-digit annual house price inflation. This shows that these increases aren’t solely to a few outlier locations, there is significant growth across the country.

Russell Galley, Managing Director, Halifax, spoke extensively on this subject, saying: “The UK housing market shrugged off a slightly slower start to the year with average property prices rising by another 0.5% in February, or £1,478 in cash terms. This was an eighth successive month of house price growth, as the resilience which has typified the market throughout the pandemic shows little sign of easing. Year-on-year prices grew by 10.8%, the fastest pace of annual growth since June 2007, pushing the average house price up to another record high of £278,123. Two years on from the start of the pandemic, average property values have now risen by £38,709 (+16%) since February 2020. Over the last 12 months alone, house prices have gained on average £27,215. This is the biggest one-year cash rise recorded in over 39 years of index history.”

Russell Galley also said; “Lack of supply continues to underpin rising house prices, with recent industry surveys showing a dearth of new properties being listed, now a long-term trend.”

This is something we have seen locally as well, and if you are considering selling your Petersfield home, get in touch, and we will be more than happy to assist you.

How are house prices in Petersfield faring?

According to Rightmove, as of the end of March 2022, house prices in Huddersfield are as follows;

Properties in Petersfield had an overall average price of £498,951 over the last year.

The majority of sales in Petersfield during the last year were detached properties, selling for an average price of £767,066. Terraced properties sold for an average of £395,139, with flats fetching £257,642.

Overall, sold prices in Petersfield over the last year were 9% up on the previous year and 12% up on the 2019 peak of £445,153.”

As you can see, house prices in Petersfield have also risen sharply in the past year, so it is staying in line with what is happening nationally.

Uncertainty will continue in the market

Of course, with so much uncertainty in the property market, it would be unwise to think things will stay this way for ever.

This issue was raised by Russell Galley from Halifax, saying; “Looking ahead, as Covid moves into an endemic phase and almost all domestic restrictions are removed, geopolitical events expose the UK to new sources of uncertainty. The war in Ukraine is a human tragedy but is also likely to have effects on confidence, trade and global supply chains. Surging oil and gas prices are one immediate consequence, meaning that inflation in the UK – already at a 30-year peak – will remain higher for longer. This will add to the squeeze on already stretched household incomes. While increases in Bank rates look likely in the near term, the extent of the rises will depend on how it affects prices and companies’ approaches to pay over the months to come. These factors are likely to weigh on buyer demand as the year progresses, with market activity likely to return to more normal levels and an easing of house price growth to be expected.”

It is likely the following factors will play a role in house prices in the immediate future:

  • The conflict in the Ukraine
  • Rising fuel prices
  • Rising costs of living
  • Changes in bank rates
  • After-effects of Brexit

 

Contact Williams of Petersfield for all your 2022 housing market needs

At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.

House Prices Rising But Not In Petersfield

At Williams of Petersfield, we look to compare how the local market is doing with what is happening across the country. This ensures you make informed decisions regarding the property market.

It is no surprise to see house prices rising across the country, but it looks as though Petersfield property prices don’t have the same upwards trajectory.

Halifax House Price Index indicates rising house prices

The most recent House Price Index, issued by Halifax, shows an increase of £3,860 in property prices in March, representing an increase of 1.4%. This represents the most significant increase since September 2021.

Halifax figures suggest the average price of property in the UK has risen by £28,113 in the past year. When you take on board the average annual earnings in the UK stands at £28,860 before tax is accounted for, you have a situation which is challenging for many people in the property market.

Property prices have risen by £43,577 since March 2020, when the first lockdown occurred.

What do the experts say?

Russell Galley is the Managing Director of Halifax, and he said: “The story behind such strong house price inflation remains unchanged: limited supply and strong demand, despite the prospect of increasing pressure on households’ finances. Although there is some recent evidence of more homes coming onto the market, the fundamental issue remains that too many buyers are chasing too few properties.”

Iain McKenzie, CEO of The Guild of Property Professionals, says: “The release of every new set of house prices is starting to feel like Groundhog Day, with constant announcements of yet another record high becoming increasingly monotonous. There was so much expectation that the cost-of-living crisis would start to impact on house prices, yet prices continue to defy predictions and show month-on-month increases. House prices are being driven not by consumer confidence, but by the lack of properties available and the speed at which they are sold, with high demand driving prices higher.”

How are house prices in Petersfield faring?

According to Rightmove, as of the end of April 2022, house prices in Petersfield are faring as follows:

Properties in Petersfield had an overall average price of £477,116 over the last year.

The majority of sales in Petersfield during the last year were terraced properties, selling for an average price of £399,963. Detached properties sold for an average of £744,506, with semi-detached properties fetching £452,973.

Overall, sold prices in Petersfield over the last year were similar to the previous year and 7% up on the 2019 peak of £445,153.”

With house prices rising across the country, it is interesting to note that house prices in Petersfield remained constant.

Will this trend continue?

Geoff Garrett is a director of a specialist mortgage broker firm, and he is optimistic that there will be a slowdown in property prices. Geoff said; “While the cost-of-living crisis may not be substantial enough to reverse the upward house price trends being seen at present, it’s almost certainly going to slow, what have been some meteoric rises in recent months.”

This is a view shared by Nathan Emerson, Propertymark CEO, who said; “The cost-of-living crisis will undoubtedly show its effects in the market in the coming months, with many households facing increasing energy bills, we could also start to see more efficient homes start to hold premiums over older or less efficient homes.”

Contact Williams of Petersfield for all your 2022 housing market needs

At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.