While demand for homes is starting to dip compared how it has been for most of the year, it is understandable that people are questioning if property prices will continue to rise. Both buyers and vendors are keen to find out how prices will move in the next year.
At Fraser Reeves, we aim to provide you with as much guidance and support as we can. We are local property market specialists in Newton-le-Willows, and we stay in touch with what is happening across the country.
Do you know house prices in Newton-le-Willows?
According to Rightmove as of November 2021, house prices in Newton-le-Willows stands at:
“Properties in Newton-Le-Willows had an overall average price of £190,133 over the last year.
The majority of sales in Newton-Le-Willows during the last year were semi-detached properties, selling for an average price of £170,272. Terraced properties sold for an average of £144,494, with detached properties fetching £287,882.
Overall, sold prices in Newton-Le-Willows over the last year were 10% up on the previous year and 22% up on the 2018 peak of £155,376.”
Some experts believe property prices will continue to rise
Sarah Coles is a personal finance analyst at Hargreaves Landsdown 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.”
As local agents in Newton-le-Willows, we are keen to support vendors, buyers and landlords in the area as best we can. We offer an extensive range of services, aimed at helping you make your next move with confidence.
If you would like to arrange a property valuation, or discuss your property options, please call Fraser Reeves on 01925 222555.
