In September 2022, Rightmove noted that house prices increased by 0.7%, bringing the national average to £367,760, however, this 0.7% increase is in line with the ten-year average for September of 0.6%. Compared to the pre-pandemic five-year average, buyer demand is currently up by 20%. Rightmove has also noted that “The number of homes coming to market has risen back to 2019 levels, giving buyers more choice”.
Did you know that due to the new stamp duty cut that around a third of homes are now exempt from stamp duty for all buyers? In a bid to help first time buyers, there is now no stamp duty to be paid on the first £425,000. While this is an incentive, the average monthly re-payments are “currently £1,057, which is 40% of an average gross salary” (Rightmove, September 2022). With a 0.5% increase expected in the months to come, this alone will be an additional £57 a month. They have stated that the demand from first time buyers has decreased since this time last year by 8%.
Following the change of interest rates at the end of September, a lot of banks drew back mortgage deals from the market. On the morning of the announcement, the interest rates were 4.74%, which have now increased to 6.07%. The BBC quoted on the 5th of October 2022 that ‘the interest rate on a typical two-year fixed rate mortgage has breached 6% for the first time in 14 years.” (BBC News, 5th September 2022).
READ MORE: https://www.bbc.co.uk/news/business-63144506
READ MORE: https://www.rightmove.co.uk/news/content/uploads/2022/09/Rightmove-HPI-26th-September-2022-Final.pdf
If you would like to find out how much your home is worth on the current market, please call Andrew or Oli on 01233 501601 or fill in the contact us form. Alternatively, if you would like some mortgage advice, call us today and we can put you in touch with local mortgage brokers who have access to the open market, to find you the best deal.
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