Tag: Housing Market

Petersfield Offers Value For Money In Housing Market

Posted on by colin_williams

There is no getting away from the fact that value for money is essential when it comes to big buying decisions. As buying decisions don’t come much bigger than buying a home, this is something people need to consider.

At Williams of Petersfield, we know the local housing market well, and we stay in touch with what is happening across the country.

This ensures we provide you with the best standard of service when it comes to whatever move you wish to make in the property market.

House prices continuing to rise across the country

The February data from the UK House Price Index for February 2022 indicates that on average, property prices rose by 0.5% in the month between January 2022 and February 2022. The annual increase of 10.9% means the average property in the United Kingdom holds a value of £276,755.

For the English property market, there was an increase of 0.9% in the average house of prices between January 2022 and February 2022. The annual price increase in England of 10.7%, is just less than the UK increase. The average property value in England stands at £295,888; which is greater than the average property value across the United Kingdom.

According to the UK House Price Index for February 2022, the average price of property in the South East of England stands at £380,528. This presents a 12% increase on the February 2021 figure, but a 0.3% fall on the January 2022 figure.

Average property price by type across England

  • Detached properties hold an average price of £469,095 representing an annual increase of 14.4%
  • Semi-detached properties hold an average price of £281,313 representing an annual increase of 11.3%
  • Terraced properties hold an average price of £238,145 representing an annual increase of 8.7%
  • Flat/maisonette properties hold an average price of £250,047 representing an annual increase of 7.8%

How is the Petersfield housing market faring?

According to Zoopla, the breakdown of property type prices in Petersfield is as follows:

  • Detached: £886,665
  • Semi-detached: £472,786
  • Terraced: £427,555
  • Flats: £263,436

In the past 12 months, the same source says there have been 254 property sales in Petersfield, and that the average sold price is £575,783.

For all the property types, the average sales price in Petersfield is higher than the UK average. This isn’t a bad thing, there are many different buyers looking for property, and we believe the Petersfield housing market offers considerable value for money.

If you are looking for guidance in the Petersfield property market, or for property in surrounding areas, we are more than happy to assist you.

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.

Strong Start To 2022 Housing Market

Posted on by colin_williams

Now that we are in April, with spring blooming all around us, it is fair to say the housing market is moving into a busy time of year. Of course, the housing market has been busy throughout 2022 so far.

At Williams of Petersfield, we know the local housing market well, and we stay in touch with what is happening nationally.

This ensures you get all the information you need to make an informed decision.

Mortgage searches are on the up

The 2022 property market got off to a flying start with mortgage search volumes by advisers increasing by close to 80%. This is according to information provided by the Legal & General Mortgage Club.

In comparison to the December 2021 figures, the January 2022 numbers rose by 91%. There was also a significant increase in searches on behalf of first-time landlords, which rose by 63%.

The information also suggests The Bank of Mum and Dad was a huge supporter for these buyers in January. Searches for people with gifted deposits increased by 88% in January 2022. There was an increase in the searches for landlords with gifted equity by 82%.

Challenges in the mortgage market

We know there are many financial challenges these days, and the January findings suggest a lot of people are looking to take better control of their finances:

  • There was an increase of 157% in searches for lenders willing to accept applicants with an unsatisfied default
  • There was an increase of 77% in searches for applicants with unsecured arrears
  • For applicants with missed mortgage payments, there was an increase in 90% of searches
  • There was a rise of 134% for applicants with a debt management plan
  • Searches for interest-only mortgages increased by 85%

Kevin Roberts, director, Legal & General Mortgage Club, comments: “There is still healthy demand in the mortgage market, but there are also signs that the cost-of-living squeeze is beginning to drive some borrowers to remortgage or find alternative mortgage solutions that help them better manage their finances. Advisers will have a critical role to play in helping many of these borrowers to secure a new fixed-rate mortgage or find a lender that is willing to support those with more complex circumstances. When advisers are dealing with these volumes, or with a case that doesn’t quite fit lender criteria, the role of technology cannot be overstated. Automating processes such as administrative tasks can give advisers back time to focus on helping borrowers secure the right mortgage for their needs. Our research tools continue to be an ally to intermediaries, and we remain committed to helping support brokers through new tech where we best can.”

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.

Property Prices Reaching New Highs

Posted on by colin_williams

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.

Property Prices Keep Rising

Posted on by colin_williams

As we make our way into 2022, it looks as though house prices are continuing to rise. This is something we have seen for ourselves at Williams of Petersfield, and it is apparent in the latest figures from a trusted source in the housing sector.

Latest ONS figures for English property market

According to figures published by the Office for National Statistics (ONS), average property prices in the United Kingdom, and for England, reached record levels in December 2021. The average price of property at the end of last year was £275,000. This was a record level, and it rose by £27,000 across the year.

For the UK as a whole, residential property price increased by 10.8% over the year to December 2021. For November 2021, the increase was 10.7%

In England, there was an increase of 10.7% for property prices for the year to December 2021. This is an increase on the 10.5% rise which occurred for the year to November 2021. Average house prices in England stood at £293,000 at the end of 2021.

What is happening in Petersfield housing market?

According to Rightmove, as of the end of February 2022, the Petersfield housing market is as follows;

“Properties in Petersfield had an overall average price of £510,827 over the last year.

The majority of sales in Petersfield during the last year were detached properties, selling for an average price of £783,004. Terraced properties sold for an average of £389,643, with semi-detached properties fetching £471,309.

Overall, sold prices in Petersfield over the last year were 14% up on the previous year and 15% up on the 2019 peak of £445,153.”

What are industry experts saying?

Jason Tebb, CEO of OnTheMarket, said: “Although this index is somewhat historic, it confirms what the market was witnessing as the year drew to an end – high levels of demand from buyers, combined with limited stock, further pushing up prices. If more interest now is how the housing market is faring as we head towards what is traditionally the busy spring period. While instruction numbers are increasing, the number of available properties is still some way short of meeting pent-up buyer demand. Sellers coming to market now may well find considerable competition for their home from the many motivated buyers keen to move and take advantage of competitive mortgage deals.”

Chris Hodgkinson, is the managing director of property investment specialists HBB Solutions, and he said: “We’re yet to see a let up in the torrential downpour of homebuyer demand that has washed over the property market pretty much since the start of the pandemic. As a result, those looking to sell are achieving a very good price which is driving property values ever higher. Current market conditions are so strong that even when transactions are falling through, sellers are securing another buyer immediately and for a higher price than they had agreed during their original sale. This won’t last forever though and those entering the market this year should tread with a little more caution. Although demand levels are likely to remain robust, buyers will start to feel the pinch caused by an increase in both the cost of living and borrowing. So sellers who persist with unrealistic asking price expectations will struggle to see them met.”

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.

Is Petersfield Good For First Time Buyers?

Posted on by colin_williams

At Williams of Petersfield, we stay in touch with the local housing market (and national market), helping people make their next move. If you are looking for guidance or assistance on any property matter, get in touch, and we will be glad to help.

This is a boom time for first-time buyers, and it is natural for people to question if Petersfield is good for first-time buyers.

How is the market looking for first-time buyers?

According to the Yorkshire Building Society (YBS), there were more than 400,000 first-time buyers in 2021. This is the first time this figure has been breached since the Great Financial Crisis. It is estimated there were 408,379 first-time buyer instructions in 2021. This represents a 35% increase on the 2020 figures, which stood at 303,000.

First-time buyers make up 50% of all property purchases with a mortgage. Back in 2007, these buyers only represented 36% in the overall mortgage market.

The last notable peak with respect to first-time buyers was 2002, and this year saw 531,800 people make their way on to the property ladder. In 2006, there were 400,900 first-time buyers in the market.

After the financial crisis, first-time buyer numbers were around 200,000 (between 2008 and 2012), so the current numbers are around double what they were during that challenging time.

Is Petersfield suitable for first-time buyers?

While the average price of property in Petersfield is higher than what many first-time buyers are looking to pay, it should be remembered that many different sorts of people, from various backgrounds, are classed as first-time buyers.

With Rightmove saying properties in Petersfield had an overall average price of £509,886 over the last year, as of the end of January 2022, this is a higher price than many people would look to pay. However, first-time buyers with support from family members or who have been a success in business or life, might find this area to be perfect when stepping onto the property ladder.

Also, in our dealings in the local area, we have worked with many first-time buyers, so we know there is demand from this group.

This is a good thing, even if you aren’t a first-time buyer yourself. Having new buyers enter the market ensures the cycle keeps moving, and if you’re a homeowner looking to sell your home, it might be that a first-time buyer is your ideal buyer.

What are key factors in the current level of demand for homes?

When it comes to understanding why there is a greater level of demand for property right now, the following factors are all prevalent:

  • Unemployment figures which are falling
  • Borrowing is affordable for many people
  • There is a strong range of affordable mortgage deals with low deposits

What is the average cost of a home for a first-time buyer?

The most recent figures, for October 2021, state the average price of a first-time buyer’s home is £222,997. This represents a 9% increase in the figure from October 2020.

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.

Interest Rate Increases And The Property Market

Posted on by colin_williams

There is a lot to consider at the start of the New Year, but there is also something major in the housing market to consider from the end of last year. The increase in interest rates, as announced by the Bank of England, will impact the housing market.

If you want to make sure that you make informed decisions in the 2022 housing market, call on Williams of Petersfield, and we will be more than happy to assist you.

Key takeaways highlighted by Zoopla

Zoopla is one of the leading property portals in the United Kingdom housing market, and they have published their key takeaways regarding the increase in interest rates on their website:

  • The Bank of England has increased interest rates from a record low of 0.1% to 0.25%
  • The move means nearly 2m homeowners will have higher monthly mortgage repayments
  • The increase will add around £14 a month to repayments for someone with a £200,000 mortgage

What are industry experts saying?

Suren Thiru, is the head of economics at the British Chambers of Commerce, who spoke about the increase in interest rates, saying; “The Bank of England’s decision to raise interest rates was surprising, given mounting uncertainty over the economic impact of the Omicron variant. While today’s rate increase may have little effect on most firms, many will view this as the first step in a longer policy movement – not as a partial reversal of last year’s cut.”

Eleanor Bateman, Policy Officer at Propertymark, commented: “The increase in base rate to 0.25% is a small and necessary step and one that most had anticipated for some time. Mortgage rates have been creeping up over the past few months, and while those on variable rates will see payments increase, the cost of borrowing remains low relative to historic levels. Though, traditionally, the winter months see a decline in activity, our Housing Market report shows sustained demand with average sales agreed maintained to the end of October.”

Eleanor Bateman continued by saying; “With indications that lifestyle factors are continuing to prompt many into making a move, we do not expect today’s announcement to have a significant, negative impact on the market. Continuing uncertainties over COVID-19 may, however, have more lasting effects, and we would urge the UK Government to consider the property industry’s significance in any forthcoming decisions on further tightening of pandemic-related measures.”

Paul Dales, chief UK economist at Capital Economics, suggests rates might need to increase further before too long. Paul said; “The MPC once again said that a ‘modest tightening’ of monetary policy is likely to be necessary, so this is not looking like a case of one and done. We still think that weaker economic growth and a faster fall in inflation will mean that interest rates won’t rise to 1% by the end of next year, but it’s just become more likely that they rise above our 0.5% forecast.”

Contact Williams of Petersfield for all your 2022 property 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.

What Comes Next In The 2022 Housing Market?

Posted on by colin_williams

At Williams of Petersfield, we are happy to help as many people as we can in the Petersfield housing market. We have assisted many buyers and vendors, and we know what people are looking for locally.

For the national market, we stay in touch with what is being said by the experts, and this helps us to help you make an informed decision.

What do the experts think will happen in 2022?

Grainne Gilmore from Zoopla was speaking with colleague Richard Donnell (as reported by the Property Industry Eye website), saying; “Richard, our latest house price report reflected what has happened in the market over the past 12 months. Prices are up 7.1% on the year, and 6.6 million homes have risen in value by more than £30,000. This is not what many would have predicted at the start of the pandemic back in March last year.”

Richard responded by saying; “Yes, the market in 2021 has been remarkably busy for agents, considering we are in a global pandemic. But, the pandemic itself has been one of the drivers of buyer demand, with many households taking lockdowns as an opportunity to reflect on where they were living, and the space in which they were living. Add to this the stamp duty holiday, and we have seen transactions rise to 1.5 million – translating into around one in 16 privately-held homes changing hands in 2021.”

What will buyers look for in 2022?

One of the biggest factors in shaping buyer activity in the past couple of years has been the need for space. It is likely that this will continue as we move forward, especially when there is still so much uncertainty over the pandemic.

Grainne said; “The rise of Omicron is causing more uncertainty for the households, and the wider economy, in the coming weeks. Our data shows a slowing in buyer demand, but it is very much in line with the usual seasonal trends. We expect a bounce back in demand in the days following Christmas and into the New Year. However, could Omicron have any impact on supply?”

Richard said; “The housing market is usually busiest in the first couple of months of the year with a spike in new listings as well as a surge in buyer interest. Starting last year with restrictions and schools closed put off many sellers. So long as schools remain open and we don’t see widespread restrictions then we would expect a strong flow of new instructions.”

What other factors will influence the 2022 housing market?

One of the reasons it is so hard to predict what will happen next in the property market is because there are so many factors involved with the process. This is why there is a need to consider as many of the factors that will shape buying processes and supplier demand as we can.

Grainne said; “There will be more economic headwinds next year, but the ‘pandemic-led’ search for space has further to run. Office-based workers will still be recalibrating their working practices and their home life, and some may choose to make a move because they no longer have to live so close to their workplace. This will continue to put upwards pressure on houses situated in wider commuter zones and more rural and coastal areas. There is more room for prices to grow in the more affordable areas, and we forecast average price rises of 4% next year, and 1.2 million transactions, roughly the same level as between 2014 and 2018. How long do you think the pandemic will continue to impact the housing market?”

Richard said; “When we look back at the pandemic in five to ten years we will recognise it marked a major turning point in the link between home and work and people’s attitudes to their home. The pandemic has engendered some seismic changes in how people want to work, and how they will work in the future. This trend has further to run, as more office-based workers decide how far they can live from the office if they do not have to be there every day into 2022 and 2023. Together with other structural factors such as an ageing population, the result should be a greater proportion of homes trading each year, bucking the decline over the last five to ten years and supporting the size of the market for agents and lenders.”

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.

What Features Do Buyers Love In Homes Right Now?

Posted on by colin_williams

At Williams of Petersfield, we are always interested in how to add value to a home, and how property can be improved upon.

A study undertaken by MoveStreets, alongside the Post Office, suggests some of the features which are set to add the largest amount of value to a home. It is no surprise to see many of these upgrades sit neatly with the post-pandemic environment.

Home gym is viewed as top addition

A home gym is said to add around 44% in value, and by the average value of property, that equates to £116,267.

This seems a significant rise, and not one that every property owner adding a home gym should expect to benefit from. However, it does suggest that adding a home gym space to your house can make it more appealing to buyers, and will help you generate more money when you sell your house.

Mind you, it is important to note that not all home gyms are of the same standard or calibre. There are some home gyms of a very high standard, and others which are not too inspired. As long as the people using the gym get some form of exercise and activity, it is a good gym, but this doesn’t mean all gyms will add value to a property.

The same can be said for any change made around the home. A swimming pool or extension needs to be a suitable addition to a property, and it needs to be of good quality. If you need advice on what sort of changes you need to make to your property, get in touch, and we will be more than happy to assist you.

Other improvements were as follows:

  • An extension was found to as much as £97,770 based on average property values
  • A walk-in wardrobe is said to add as much as 34% to the value of your home, and this equates to £89,843
  • A new kitchen can boost your property value by as much as £69,900
  • A swimming pool could add £58,000 to the value of your home
  • Upgrading your garden could boost the value of your property by up to £53,000
  • Carrying out a basement conversion at your home could increase value by up to £45,000
  • Converting your loft into a living space could add £28,538 to the value of your home
  • Installing a conservatory could boost the value of your home by £26,000
  • Adding or upgrading a driveway could add more than £23,000 to the property value

Adam Kamani, CEO and Co-Founder of MoveStreets, said: “There’s no doubt that the pandemic has changed the way we view our homes and what we consider a valuable addition having spent so much of the last two years within them. Any improvement that adds space is always going to appeal to buyers, however, it’s interesting to see that a space to keep fit now tops the table in terms of the most value-added.”

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.

Will Property Prices Continue Rising?

Posted on by colin_williams

Given that demand for homes is said to be cooling off, a lot of people believe that house prices will start to slow down, and possibly even fall.

At Williams of Petersfield, we are committed to providing you with the best standard of support and guidance we can offer. If you have any questions regarding the Petersfield housing market, please get in touch, and we will be more than happy to assist you.

Some experts believe house prices will rise further

Sarah Coles is a personal finance analyst at Hargreaves Lansdown believes property prices will continue to rise, even if there is an increase in interest rates later on in 2021 or in 2022.

Sarah said; “Most of the value of the stamp duty holiday was lost at the end of June, so we saw a big surge in average prices in June as people rushed for the deadline and pushed prices up. After this passed, the market took a breath, and prices dropped back slightly in July. Then, in August, the final stamp duty holiday deadline started exerting an influence. And while people could save far less at this point, there was still the psychological effect of the final deadline at the end of September urging them on. Price rises bounced back in August, and there’s every sign they’ll remain strong in September too.”

A rise in interest rates will be something which affects the market, but hopefully not by too much. Sarah also said; “The banks are currently prepared to increase their exposure to risk in a way they would be wary of, if they thought prices would fall. So, for example, HSBC has increased limits on how much wealthy buyers can borrow. Those with incomes of £75,000 or more can now borrow five and a half times their income – up from five times – and there’s every chance other banks will follow suit.”

The market is currently robust

Nationwide suggests, in their most recently published guides, that property prices have increased by 0.7% on a month-on-month basis. The non-seasonally adjusted average price of property stands at £250,311. Annual house price growth was 10% in September 2021, but for October 2021, the figure stands at 9.9%, so there has been a minimal reduction.

Robert Gardner, Nationwide’s Chief Economist, said: “Annual house price growth remained elevated in October at 9.9%, albeit marginally lower than the 10.0% recorded in September. Prices rose 0.7% in month-on-month terms, after taking account of seasonal effects. The price of a typical UK home has now passed the £250,000 mark, an increase of £30,728 since the pandemic struck in March 2020. Demand for homes has remained strong, despite the expiry of the stamp duty holiday at the end of September. Indeed, mortgage applications remained robust at 72,645 in September, more than 10% above the monthly average recorded in 2019. Combined with a lack of homes on the market, this helps to explain why price growth has remained robust.”

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.

Add Property Value With A Simple Step

Posted on by colin_williams

This is the perfect time of year to take care of your radiators and make sure your home is well set up for what comes next this autumn and winter. At Williams of Petersfield, we are advocates of caring for your radiators, as this brings short and long-term benefits to your home.

If you need guidance on selling your home, or any other aspect of the housing market, we are here to help you.

Think about property value at all times

Property Energy Professionals Association (PEPA) has spoken about the importance of Energy Performance Certificate (EPC) ratings on property prices. The organisation has examined research carried out by Nationwide and said that properties holding an A or B rating carry a value that is around 5.2% greater than properties with an F or G rating.

With PEPE stating the average value of property stands at £280,000; this could see an additional £14,500 added to the house price.

Andrew Parkin, PEPA Chairman, says: “With property and energy prices continuing to rise and with increased global focus on energy efficiency and carbon emission reductions, the value of improving energy efficiency in properties is only likely to increase. It makes sense for homeowners to invest in an EPC now to find out what opportunities there may be to enhance the value of their property and reduce energy bills without waiting for the time when they may wish to sell.”

You can add value to your home

Andrew Harvey, senior economist at Nationwide, said: “Decarbonising and adapting the UK’s housing stock is critical if the UK is to meet its 2050 emissions targets, especially given that the housing stock accounts for around 15% of the UK’s total carbon emissions. With this in mind, we used our house price data to explore the extent to which owner occupiers pay a premium or discount for a home due to its energy performance rating. To do this, we included energy efficiency ratings from [EPCs] alongside the usual property characteristics data we use in our House Price Index.”

Andrew Harvey continued by saying; “This allowed us to control for other factors that can influence the value of a house or flat and isolate the impact of energy efficiency ratings alone. Government analysis based on the latest English Housing Survey suggests that if all eligible energy improvement measures defined in the EPC methodology were to be installed in the current stock of dwellings, 98% would be rated A to C, with just 2% in band D or lower. Installing all the recommended energy improvement measures in homes currently rated F or G would result in an average saving of around £1,780 per year.”

Andrew Harvey concluded by saying; “However, the installation cost for such measures is also high at an estimated £25,800, meaning a payback period of around 14 years. The government’s current aspiration is to upgrade as many homes as possible to band C by 2035. The average cost to improve a property to an energy efficiency of band C is c£8,100, though the cost is considerably higher for properties rated F or G. However, the pace of energy efficiency improvements is relatively slow given the scale of the challenge. For example, insulation installation is well below the 2012 peak, the last year of the Carbon Emissions Reduction Target and Community Energy Savings Programme. This suggests a need for further incentives to help decarbonise homes.”

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.

Make Informed Choices In Housing Market

Posted on by colin_williams

You can look at many pieces of information to tell you how the market is faring, but property prices and mortgage approvals tell you a lot. This is something we know and care about at Williams of Petersfield, and we are on hand to ensure you make informed decisions when it comes to the housing market.

If you are looking to make a move and need any assistance, please get in touch, and we will be happy to help.

Stay in touch with Petersfield house prices

According to Rightmove, as of the end of September 2021, the average price paid for property in Petersfield is as follows;

“Properties in Petersfield had an overall average price of £506,837 over the last year.

The majority of sales in Petersfield during the last year were detached properties, selling for an average price of £724,455. Terraced properties sold for an average of £368,305, with semi-detached properties fetching £461,730.

Overall, sold prices in Petersfield over the last year were 17% up on the previous year and 16% up on the 2018 peak of £436,809.”

Mortgage lending has been high this year

Information provided by the Bank of England show £89bn of mortgage lending was approved between April and June 2021. This is the highest amount since 2007.

The majority of mortgage applications were made by people intending to live in the property, with at least 66.4% of applicants stating this.

Breaking this group down uncovers:

  • 24.7% as first-time buyers, which represents a 6.5% increase from a year ago and a 2.8% rise since the beginning of 2021
  • Home-movers rose to 41.7%, a rise of 18.3% on the previous year
  • Buy-to-let mortgages account for 11.3% of mortgage approvals, a fall of 3.1% from a year before

However, some names in the mortgage sector believe this positive activity might not last for too long.

Mark Gilliver, business Development director at mortgage software provider the Target Group, said: “Throughout the pandemic, the mortgage market has been in a state of fluctuation, initially seeing a drop in demand during the first lockdown, but then experiencing a boom in demand thanks to the stamp duty holiday initiative.”

Mark also said; “This in itself has led to heightened demand and therefore an increase in prices, forcing many to take out larger mortgages. Whilst some were able to build deposit nest eggs thanks to reduced outgoings, quarter two saw a boom in demand, as homebuyers looked to escape a costly tax bill.”

Mark Gilliver concluded by saying; “However, the Q2 results could be seen as outliers, as we are unlikely to see such a rush again for a while. With inflationary pressures and the threat of increased interest rates not far off, the next quarter could well tell a very different story. This could be a sign that the phase of bigger mortgages is on its way out now that the UK has reopened and spending on non-essentials items is reintroduced into the public’s budgets.”

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.