Homeowners will be pleased to hear property values are on the rise again, after several months of declining prices.
Halifax released its House Price Index for February 2023 recently, revealing values rose by 1.1 per cent over the month taking the average cost of a home in the UK to £285,476.
House prices have been falling since July, having hit its peak the month before when a typical property reached £293,586.
They have, therefore, declined in value by £8,000 since the summer, and only risen by 2.1 per cent since February 2022.
Kim Kinnaird, director of Halifax Mortgages, reassured owners that “recent reductions in mortgage rates, improving consumer confidence and a continuing resilience in the labour market are arguably helping to stabilise prices”.
She added that while prices fell over the autumn, they are still higher than a year ago and above pre-Covid-19 levels. Therefore, sellers have managed to “retain price gains made during the pandemic”.
Following the announcement of the Spring Budget by chancellor Jeremy Hunt, the government has not made changes to Stamp Duty Land Tax (SDLT). The previous chancellor increased the threshold for the levy, helping buyers to get on the market last September. This meant no tax had to be paid on first homes up to the value of £250,000 with the rates set to remain until March 31st 2025.
Shane Miller from national property company Spring told Property Industry Eye the Budget was “another missed opportunity from the government to finally reform Stamp Duty Land Tax, the current structure of which is a disincentive to labour mobility and, therefore, an impediment to their levelling up agenda”.
If the increasing prices have given you confidence to sell your property after months of declining prices, contact estate agents in Leicester who can advise you on your next steps.
