Tag: House Prices

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Trellows Property Market Update – Cambridgeshire July 2023

Trellows Property Market Update

Trellows Property Market Update – Cambridgeshire July 2023

**House Prices in Cambridgeshire: A Look at the Market Trends**

Cambridgeshire, known for its prestigious universities, picturesque countryside, and vibrant cities, has become a desirable location for property buyers and investors. As the region continues to attract people from all walks of life, let’s take a closer look at the current house prices in Cambridgeshire and the trends that have shaped the market over the last year.

**Overall Average Price**

Over the past year, properties in Cambridgeshire had an overall average price of £376,949. This figure encompasses various types of properties, ranging from detached houses to flats, and provides a general understanding of the region’s property market.

**Detached Properties**

Detached properties have dominated the market in Cambridgeshire, with the majority of sales falling under this category. The average price of a detached house in the region was £515,434 over the last year. These spacious and independent homes have proven to be popular among buyers seeking privacy and ample living space.

**Semi-Detached Properties**

Semi-detached properties, another sought-after choice for families and first-time buyers, had an average selling price of £338,312. These homes offer a good compromise between affordability and space, making them a practical option for many buyers.

**Terraced Properties**

Terraced properties, often offering a charming and compact living space, had an average selling price of £306,726 in Cambridgeshire. These homes can be a great choice for buyers seeking a sense of community and a central location.

**Market Trends**

The property market in Cambridgeshire experienced significant growth over the last year. Sold prices were 7% higher compared to the previous year, showcasing a strong demand for properties in the region. Moreover, prices were up by an impressive 14% when compared to the 2020 peak of £330,837, indicating a sustained upward trend in property values.

**Noteworthy Sales**

Let’s take a look at some notable property sales in Cambridgeshire:

Date sold Property Address Property Type Sale Price (£) Tenure
23 May 2023 25, The Oaks, Soham, Ely, Cambridgeshire CB7 5FF Detached £625,000 Freehold
19 May 2023 93, Appletrees, Bar Hill, Cambridge, Cambridgeshire CB23 8SW Detached £430,000 Freehold
19 May 2023 17, Star Lane, Ramsey, Huntingdon, Cambridgeshire PE26 1JJ Detached £295,000 Freehold
19 May 2023 4, Vicarage Close, Oakington, Cambridge, Cambridgeshire CB24 3AN Detached £475,000 Freehold
19 May 2023 Flat 4, The Grange, 65, High Street, Somersham, Huntingdon, Cambridgeshire PE28 3JB Flat £105,000 Leasehold
19 May 2023 15, Westhawe, Bretton, Peterborough, City Of Peterborough PE3 8BA Detached £573,000 Freehold
18 May 2023 25, Vicarage Way, Trumpington, Cambridge, Cambridgeshire CB2 9NT Detached £840,000 Freehold
17 May 2023 44, Roman Way, Godmanchester, Huntingdon, Cambridgeshire PE29 2RW Terraced £310,000 Freehold
17 May 2023 17, Weddell Road, Haverhill, Suffolk CB9 0LE Detached £330,000 Freehold
17 May 2023 8, Malting Yard, Ramsey, Huntingdon, Cambridgeshire PE26 1DL Flat £130,000 Leasehold
17 May 2023 9, Atkinson Street, Peterborough, City Of Peterborough PE1 5HW Terraced £180,000 Freehold
17 May 2023 29a, Woodpecker Way, Great Cambourne, Cambridge, Cambridgeshire CB23 6GZ Semi-detached £170,000 Leasehold
16 May 2023 37, Listers Road, Upwell, Wisbech, Norfolk PE14 9BW Detached £325,000 Freehold
16 May 2023 1, Osprey Road, Biggleswade, Central Bedfordshire SG18 8DZ Terraced £315,000 Freehold
16 May 2023 15, Bridge Road, Bedford MK42 9LJ Semi-detached £260,000 Freehold
16 May 2023 16, School Road, Terrington St John, Wisbech, Norfolk PE14 7SE Semi-detached £140,000 Freehold
16 May 2023 64, Ross Close, Saffron Walden, Essex CB11 4AY Flat £265,000 Leasehold
15 May 2023 10, Payton Way, Waterbeach, Cambridge, Cambridgeshire CB25 9NS Semi-detached £395,000 Freehold
15 May 2023 8, Mill Road, Impington, Cambridge, Cambridgeshire CB24 9PE Semi-detached £575,000 Freehold
15 May 2023 424, March Road, Turves, Peterborough, Cambridgeshire PE7 2DW Semi-detached £165,000 Freehold
12 May 2023 22, Granta Terrace, Great Shelford, Cambridge, Cambridgeshire CB22 5DJ Terraced £525,000 Freehold
12 May 2023 161, Padholme Road, Peterborough, City Of Peterborough PE1 5JA Detached £240,000 Freehold
12 May 2023 3, Pattens Close, Whittlesey, Peterborough, Cambridgeshire PE7 1FA Semi-detached £260,000 Freehold
12 May 2023 291, Arbury Road, Cambridge, Cambridgeshire CB4 2JL Detached £575,000 Freehold
12 May 2023 9, Hartley Close, Waterbeach, Cambridge, Cambridgeshire CB25 9NG Semi-detached £288,000 Freehold

 

These sales illustrate the diversity of properties available in Cambridgeshire and the varying price points in the region.

**Conclusion**

Cambridgeshire’s property market has seen impressive growth over the last year, with detached properties leading the way in terms of popularity and price. As the region continues to attract residents and investors alike, it remains an area of interest for those looking to purchase a property. Whether you’re searching for a spacious detached house or a cozy terraced home, Cambridgeshire offers a range of options to suit different preferences and budgets.

 

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What next for the property market in Northamptonshire

What next for the property market in Northamptonshire

 

It’s been quite a worrying time over the last few weeks, with all different factors coming together to ring alarm bells for the over-heating property market, but what is the situation in Northamptonshire and should you hold-off on any plans to move?

Despite the fact that there will invariably be some sort of correction for the sought after pockets that clearly achieved unrealistic prices over the last year or two, for the main part, Northamptonshire has not experienced any unrealistic prices, but even so, there may still be some downward pressure. The direction of interest rates has recently been upwards, but where they will peak is still unclear, as the effects of the existing rises is yet to filter through in to statistics on final selling prices.

One thing is for certain, the property market is much more sensitive to rises today, than it was in the past, therefore exponential rises will probably not be needed to slow things down significantly, but even so, due to the large volume of property that has been bought up by investors over the last decade or two, there is still a significant shortage of entry level property, coming to market, as investors tend to hang on to their properties long-term, whereas homeowners tend to move every 5/6 years.

Even though there has been a significant number of landlords exiting the Buy to Let market over the last few years, those properties have easily been taken up by first-time-buyers and larger investors, who are still buying in large quantities, such as Lloyds Bank, who announced that they plan to be the UKs largest landlord by 2025.

Therefore, first time buyers who are savvy, should use the forthcoming year to bag themselves a bargain, provided that their figures stack up in the short term, until rates begin to come down again, which they will, we need only look at the 5 year terms that lenders are offering, which are cheaper than their 2 year deals on average, which indicates that they expect interest rates to begin falling after the end of year two, otherwise they would not offer them in the first place.

As for home-movers, a falling market is not a time to wait, for the main part, it is actually a good time to consider moving up, as any fall in prices is normally by percentage and therefore, the higher the price, the greater the fall, which could translate in to maybe taking an offer on your own home, but you would be making a larger saving on the next property, resulting in a material gain.

The most important factor that applies over the next year or two, is to ensure that you are able to cover any rise in interest rates, which may require some sacrifices, but with Northamptonshire being a booming county, with far more jobs available than there are candidates, there is no reason for any short term fall, not to be out-weighed by gains in the medium to long term.

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What is happening to the UK property market

What is happening to the uk property market

What is happening to the UK property market

Whether you’re applying for your first mortgage, or you’re already a homeowner, you’ll know there’s a lot of news coverage about interest rates, inflation and mortgage loans right now. 

So what’s happening, and why? How it might affect you will depend on what type of mortgage deal you’re looking for, or the type of deal you’re on – and how much longer is left on the term of your loan. 

Plus, forecasts on rising interest rates are changing quickly, along with wider economic conditions. No one knows for sure what’s ahead, but we’re still seeing tens of thousands of people requesting to view properties each day, which is the same level that we’ve seen all month.

So if you are thinking of moving, or if your mortgage term is coming to an end soon, here we’ve tried to help answer some of the questions you might have. 

Why are mortgage rates rising now?

Before this week, mortgage rates had already been increasing throughout the year. The Bank of England sets the ‘base rate’, which lenders use to set their own mortgage rates. In January of this year, the base rate was 0.25%. Since then, it has gone up incrementally and is currently 2.25%. 

The Government sets the Bank of England an inflation target of 2%, but the current rate is 9.9%. It’s the Bank of England’s responsibility to make sure inflation is low and stable, so they need to bring inflation back down. The way they do that is by increasing interest rates. 

The Bank of England forecasts inflation to rise to about 11% in October, and that it will stay above 10% for a few months before starting to fall. 

Rising interest rates have led to an increase in the average mortgage rates that are available. As an example, if you have a 10% deposit and choose to take out a two-year fixed rate mortgage, the typical rate that was available in January was 2%. That increased to an average of 3.9% at the end of August. These rises had been predicted and lenders were able to factor them in gradually. 

Mortgage rates have been rising further this week because when unexpected things happen in financial markets, they’re likely to have a direct impact. Last Friday (23rd September), the Chancellor’s mini-budget unveiled the biggest tax cuts for 50 years, including a stamp duty cut for home-movers in England and Northern Ireland.

This has resulted in a lot of speculation about how these cuts might impact the UK’s finances. The value of the pound has seen record falls, which is likely to drive inflation up further. As a result, it’s widely believed that the Bank of England may need to raise interest rates faster and higher than previously forecasted. 

At the minute, there’s a suggestion from the financial markets that the bank base rate could rise to 5.8% by next spring. This has impacted the underlying costs of fixed-rate mortgages. This is why some lenders have repriced deals and others have temporarily removed some or all of their products. Some of the lenders who have withdrawn products are expected to return with new deals in the coming days and weeks.

How might increasing interest rates affect my mortgage?

If you’re a first-time buyer, moving home, or remortgaging, it’s likely you’ll be impacted by the changes. If you have a fixed-rate deal, the good news is that it will be business as usual, and your monthly repayments won’t change, at least until your current deal ends. 

If you don’t do anything, at the end of your deal you’ll automatically move on to the lender’s Standard Variable Rate (SVR). These rates tend to be higher than other mortgage rates and are generally changed to reflect movements in the Bank of England’s base rate. 

Take a look at how your repayments would change if you have a 25-year mortgage term and are looking at a fixed-rate for £200,000, based on rates increasing from between 2% to 6%. 

Fixed mortgage rate (£200,000 over 25 years) Monthly payments Increase in monthly payments
1% £754
2% £848 +£94
3% £948 +£194
4% £1,056 +£302
5% £1,169 +£415
6% £1,289 +£535

 

If you’re among the estimated 15% of borrowers with a variable or a tracker mortgage, your monthly outgoings will almost certainly go up. The interest rate paid on tracker mortgages is usually anchored against the bank base rate plus a set percentage. For example, the current base rate of 2.25%, plus 1%, would mean you’d be paying 3.25% interest right now. 

Can I still get a fixed-rate mortgage deal now?

Some lenders have withdrawn their fixed-rate products, while others have increased their prices in response to the rapidly changing costs of their funding. But it’s definitely worth finding out what your options are. 

If you’re on a tracker or a variable mortgage, you could shop around to see if you can find a cheaper option with a fixed-rate mortgage. However, you might have to pay an early repayment charge first. You could speak to a qualified mortgage broker or adviser if you’re unsure which options would be best for your individual circumstances. 

I’m on a fixed rate, what are my options when my deal ends?

If your fixed-rate deal is due to end within the next six months, you could see what your options are for locking in a deal now. 

Many lenders will allow existing customers to apply for new deals up to six months before their current rate ends without having to pay an early repayment charge. This is often called ‘product transfer’ or ‘switching’. This is a relatively easy process as you’re staying with your existing lender, so you won’t need a solicitor or a property valuation, and there’s no need to prove your income. 

If you’re looking to move lenders – whether you’re remortgaging or moving home – you may want to start well before your fixed-rate deal ends, as the application process can take several months or more. 

There is so much fluctuation in the mortgage market right now, you might want to look at what your lender has to offer or speak to a mortgage broker to find out which deals are available to you. 

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Property to crash in 2022?

Property to crash in 2022

Property to crash in 2022?

 

HOUSE PRICES have hit dizzying highs despite the UK’s crumbling economy and many now expect a full-blown crash this year. Yet a house price crash may be averted for a surprising reason.

As the cost-of-living crisis intensifies the doom-mongers are shouting about the dangers of a property crash again. Yet there are good reasons why that may not happen despite today’s growing uncertainties.

There are good reasons to be worried about the property market right now.

The average homeowner with a £224,000 mortgage is paying £1,000 a year more interest a year as result of the BOE hiking rates from 0.1 percent in December to one percent today.

Base rates are set to climb higher and many homeowners will struggle as every other household cost soars at the same time.

Banks and building societies are already marking down properties during mortgage surveys, knocking £20,000 or £30,000 off the valuation to protect themselves.

That makes it harder for borrowers to raise the money they need, forcing some to pull out of their purchase. Property chains could collapse as a result.

It’s undoubtedly a dangerous time for the housing market.

This had led to growing caution among buyers, sellers and lenders, according to the Royal Institute of Chartered Surveyors.

Estate agents report having to do a lot more legwork for sales, as prospective buyers take their time, Hargreaves Lansdown’s senior personal finance analyst Sarah Coles said.

Sources report that buyers are finding it harder to get mortgages, as lenders tighten affordability criteria. “This is causing some chains to fall apart, as many banks don’t think properties are worth their asking price,”

By every rational measure, today’s dizzying house prices should crash back to earth. The average property now costs an incredible 9.1 times the average salary in England, way above the long-term figure of four or five times.

First time buyers are struggling to build big enough deposits. Seven in 10 have now put their plans on hold for at least two years, Nationwide reports.

So why won’t prices crash?

One reason is that buyer demand is still strong, while the supply of property is weak.

House prices jumped an incredible 10.8 percent in the last year, which includes a rise of 1.1 percent in April alone, adding £3,078 to the average home.

This has lifted the average property price to another new record high of £286,079, and Halifax managing director Russell Galley said activity shows “little sign of abating” amid strong buyer competition.

Demand continues to outpace supply due to the “insufficient number of new properties coming onto the market”.

Galley anticipates the rate of house price growth will slow, but only by the end of this year. He does not foresee a crash.

Another reason the market won’t crash is that owners are taking action to protect themselves from mortgage hikes, said Joshua Elash, director of property lender MT Finance. “They are increasingly locking into longer term fixed rates, in expectation of further rate rises.”

Also, mortgages remain dirt-cheap by historical standards. It is still possible to get a five-year fixed rate charging just 2.5 percent. When property prices crashed 20 percent between 1989 and 1993, mortgage rates hit a staggering 15 percent.

That would trigger the mother of all meltdowns today, but that isn’t going to happen.

Here’s the most unexpected reason why prices won’t crash.

If the UK is heading into recession, the Bank of England is likely to scale back its base rate hikes, said Rupert Thompson, investment strategist at Kingswood.

As a result, base rates may only climb to just 1.5 percent or two percent, still low by most standards.

This would keep mortgages affordable, and head off any crash. Incredibly, this means a recession could actually ride to the property market’s rescue. Few will have seen that coming.

There is also the fact that only around one third of properties in the UK are occupied by mortgage payers, the other third are owned outright with the remainder being rented. Of the third that pays a mortgage, many are on fixed term deals, with a few having fixed deals for five or ten years. The immediate effect will probably only be felt in the next year or two, until the rises in energy this year, which account for about 75% of the inflation figure, taper off.

There is a great possibility that interest rates will rise to as much as 2.5% by next year, though nothing is certain, then they will peak and gradually come down. The fact that there are some great long term fixed rates, indicates that those in the know, are confident that the rise in rates is only temporary, hence the reason they are offering to lock in good rates (for them) for a long time.

Another factor that differentiates the current climates from the pas, is the supply of money. Since the crash of 2008, banks have not only been super careful with lending, but the gap, between the base rate and the variable mortgage rate has been higher than ever.

Previously, the gap was around 1% at the most, but for much of the last 14 years, the base rate has been around 0.5% but the variable rate has been as much as 5%, which is a mark up of 1,000% and since the pandemic, when the base rate was lowered to 0.1%, some lenders were still charging a variable rate of 5%, that is a mark up of 5,000%! So as you may gather, the banks are awash with money and the availability of funding, will invariably keep the market safe.

It seems like the doom-mongers may have to wait a little longer for the big crash.

 

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House prices still rising but that could change soon

House prices still rising but that could change soon

House prices still rising but that could change soon

The current climate could be short lived

House price growth hit a five-month high in February, according to Land Registry data but there are warnings that this will be short-lived. The Land Registry’s latest House Price Index shows UK property values rose 10.9% annually in February 2022.

That is the highest growth figure since September 2021, which coincided with the end of the stamp duty holiday on purchases up to £250,000.

This puts the average UK property price at £276,755. Annual house price growth was strongest in Wales where prices increased by 14.2% in the year to February 2022.

The lowest annual growth was in London, where prices increased by 8.1% in the year to February 2022.

Overall, UK prices were up just 0.5% on a monthly basis though, which may reflect recent warns that growth is set to slow. Other data revealed in the index for December 2021 also showed a sharp drop in transactions.  UK volume transactions decreased by 47.1% in the year to December 2021, according to Land Registry figures.

Sales in England decreased by 52.5% annually in England, by 18.1% in Scotland, 47.3% in Wales and by 16.9% in Northern Ireland.

“Soaring inflation, the rising cost of living, high energy bills and a lack of support from the government at last month’s Spring Statement mean many people are feeling the squeeze financially. The recent introduction of the new energy price cap and the national insurance increase has further heightened the pressure.

“With wages failing to keep up, the increased costs of moving home will likely put off prospective buyers and taking a first step onto the property ladder will be pushed out of reach for many. As a result, we could see house prices dip over the coming months.

“While house prices have remained robust for the time being, how the housing market truly reacts to the current circumstances is yet to be seen. However, it is unlikely that house prices will be able to continue rising at the same rate seen in recent times – particularly against the backdrop of an economy already trying to recover from the impact of the pandemic.

“If a slowdown does begin to materialise, a gradual fall in house prices is expected as opposed to a sudden drop. At present, there remains too much demand and too little stock, so house prices will likely remain high for some time yet.”

“The level of housing supply is 32% lower than before the pandemic and demand is up 134%.

“These latest figures suggest that the market continues to remain extremely competitive but the cost of living crisis may be a key contributor preventing home buyers and sellers coming onto the market due to financial uncertainty.

“However, slight growth in the number of properties coming to the market is being seen which is a positive shift in the right direction as a closing in the gap of supply and demand will enable house prices to start to stabilise.”

“These numbers show house prices continuing on their apparently inexorable upward path but that’s not quite what’s happening on the ground now.

“Demand is still well ahead of supply but concerns about the rising cost of living, squeezed pay packets and potentially further interest rate rises, are reducing price growth and transaction numbers.

“Looking forward, we expect activity to return to more ‘normal’ pre-pandemic conditions as supply picks up as part of the usual spring bounce.”

Whilst it is inevitable that the current growth cannot be sustained, the effect of debt erosion by inflation, combined with unprecedented demand, should prevent a drastic fall, but growth will certainly slow down towards the end of the year. It is vital that measures are taken to ensure that is is gradual slow-down and not a hard bump, otherwise we could experience a loss of confidence in the market not experienced since the early ninteies.

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Inflation wiping out house price growth in many areas – claim

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Soaring inflation means that house price growth in much of the country is being wiped out, according to a leading housing market analysis.

The latest monthly market report from the Home website says that only four English regions, plus Wales, show annual growth over and above the latest RPI inflation figure of 7.7 per cent for November.

Home also warns that with RPI inflation – according to some analysts – heading for 10 per cent, “some regions are treading water while others are suffering significant price falls in real terms.”

The website cautions that with cannier buyers fixing seven year mortgage deals at as low a rate as two per cent, there are hedges against the growing inflation threat – so it is not expecting any significant impact on the number of buyers in the housing market in 2022.

Home also quantifies the large gap between supply and demand.

It says agents’ inventories over the past 12 months have dropped 41 per cent – and actually 50 per cent less than in January 2019.

Supply in London is down 33 per cent year-on-year, sales stock is down 25% and prices are already up 1.3% over the last six months, making it one of the top four performing English regions.

Monthly supply of new sales listings remains comparatively low across the UK, down 18 per cent compared to the month of December 2020. Greater London shows the greatest contraction again this month.

Scarcity is also prevalent in the rental market and Home warns that it’s getting worse – the supply of rental properties is down 24 per cent on January 2021, making further rent hikes inevitable this year.