Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. As 2017 draws to a close we look at what is happening with the UK property market. Our monthly Property Price Update gives you a summary of what the experts in the market are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
News from the UK property market
The latest data released by Nationwide shows that the annual house price growth has increased by 2.5% during November. This is the same as it was for October.
The average house price for November was £209,988, this is slightly down when compared to October where the average house price was £211,085.
The annual growth demand remains in the 2-4% range. This has been the case since March 2017.
Low mortgage rates and healthy employment figures are providing support for demand. However, the squeeze on household incomes is affecting people’s ability to move or purchase a property.
Changes to Stamp Duty
From 22nd November first time buyers don’t have to pay Stamp Duty on properties valued under £300,000. Plus, for properties worth under £500,00 the first £300,000 is exempt from Stamp Duty.
At the moment, this change hasn’t had a major impact on the housing market. In many regions, first time buyers have paid little or no Stamp Duty as the average property price for first time buyers was below the previous threshold of £125,000.
The change is set to benefit first time buyers where property prices are higher, specifically London and the South-East.
Britain is building
The Budget also focussed on house building. This is great news as the lack of housing stock is one of the main reasons why affordability is stretched in some areas of the country. Philip Hammond announced plans to deliver an extra 300,000 per year by the mid-2020’s.
This is an ambitious plan. However, it is hoped that this can be achieved by converting existing homes into individual units and homes that can be created by ‘change of use’.
Change of use is where shops, offices and commercial properties are converted to homes.