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The property market in 2024 has been somewhat turbulent but it has not been all bad. In many ways it has followed a similar path to that of the post-covid market albeit for many different reasons.
It is therefore encouraging, if not a little surprising, to read that according to the Office for National Statistics (ONS) the average house price increase in the North of England, over the last 12 months, has been not only upwards, but higher than anywhere else in the country.
The latest annual house price inflation figures from the ONS show the North of England in the top three positions across the UK; North East 4.7%, Yorkshire and Humber 4.6% and North West 4.4%, Average UK house prices increased by 3.4% (provisional estimate) in the 12 months to October 2024.
When we look back at the political uncertainty of the past year it is hardly surprising that many potential buyers and sellers have put their plans to move on hold while they wait to see what comes of all the changes being tabled by the new government and how this might impact on inflation and interest rates.
However, the figures clearly show that for motivated buyers and sellers in the North there really has been no reason to delay. It has been particularly rewarding for those sellers who have gone ahead with their sales and taken advantage of a wholly undersupplied market.
This positive sentiment has not escaped sellers who are already positioning themselves for early entry to the 2025 market. The number of potential sellers inviting us to visit their homes and provide marketing recommendations for an early spring launch, is way up on last year and is very promising.
Despite this optimism, there are a couple of clouds on the horizon which are likely to impact the market in the North in 2025 and beyond; Stamp Duty Land Tax (SDLT) surcharge will be increasing from 3% to 5% for second homeowners from April 2025, alongside a 100% increase in Council Tax for second homeowners.
As we have four National Parks in our patch of the North as well as some of the best coastline in England, we are naturally a magnate for second homeowners. These taxation measures will undoubtedly impact our market and may well put a brake on immediate house price inflation. We envisage, therefore, that more houses will come to the market as owners take the view that these extra costs simply aren’t worth it, but it is hard to see that the supply and demand dynamic will change so significantly as to bring prices down and reverse the trend of the last 12 months. Another benefit is that these houses are more likely to become permanent homes so long as local people can afford them.
In general, though, confidence is definitely returning, a key factor for a thriving market. Sellers who act early in the New Year are likely to benefit from the current lack of stock and Buyers, in the knowledge that interest rates are on the way down, are likely to be more committed. This is already playing out, with quality properties launched in this autumn selling quickly.
The message is clear then. If you are thinking about selling your home or you have decided to make the move you were thinking about last year, do not delay. Speak with your local property expert, who really knows their market, and plan to stay one step ahead in what we believe will be a more competitive year than the last.
GSC Grays News
North of England sees highest property price increases across the UK in 2024 By Lizzie Tate, Property Agent, GSC Grays
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