The summer was good for Hewetson and Johnson with several recent completions on sales from £395,000 to £2 million. Many homes attracted competitive bidding and viewing levels in August were very strong. York had proved particularly popular with buyers moving to the region from across the country.
House prices continue to show strong growth both locally and nationally. House prices in England grew year on year by 7% according to the Land Registry’s most recent figures, and in Richmondshire values soared by nearly 21.5% for the same period.
Despite the end of the more significant Stamp Duty holiday, a continued lack of housing stock is driving values upward, supported by low interest rates. Zoopla reported homes listed in July are down 33% on the same month in 2019 and 2018. This is compounding the supply of second hand homes for sale, as home owners are choosing not to sell due to the shortage of homes for them to move on to.
It seems likely the current situation will carry into 2022. Sellers will continue to achieve premiums as buyers are having to compete in a market restricted by supply. It is our view prices will hold in most cases in the mid-term, plateauing as more stock comes to the market in Spring next year. It is likely the prime markets in certain areas will see prices come back marginally as the flow of new buyers recedes, and competition is reduced. There have been instances where homes in the £1.5 million to £3 million market have achieved exceptional premiums although that may not be sustainable.
Ben Pridden our sales director comments, “We are still selling homes at all price points, and there is no sign at the coal face of prices slowing yet. However new buyers moving to the region to start a new life in large rural homes will slow and I suspect some of the premiums we have seen may not be repeatable in a year’s time. With this in mind now must be the time to catch the current trend of buyers cashing in their old urban lives for a move to the country.”