If you have been thinking of selling your home, the first thing you should do is get a property valuation carried out, as this will give you an idea of what a realistic price looks like. That way, you can’t price yourself out of the market, but, equally, you won’t lose money by asking for less than it is worth.
Some people might have been hesitant to do this in the last couple of years, when house prices have seen a slight dip amid a weaker economy, high inflation that constrained the ability of some buyers to make a purchase, soaring interest rates and, as a consequence of all these factors, a slight drop in average UK house prices, albeit with regional variations.
However, the situation has been changing significantly this year. The economy swiftly exited the brief recession of late 2023, consumer price inflation is now below two per cent and the Bank of England’s Monetary Policy Committee (MPC) has now cut the base rate twice, the second of these coming earlier this month.
With this bringing the promise of cheaper mortgages, the recent growth in the property market should continue. Indeed, even before the MPC decision this month, the Halifax House Price Index for October showed just how the market has been recovering.
This showed clear positive movement in all the main indicators. The average house price was up by 0.2 per cent month-on-month, 1.2 per cent on a quarterly basis and by 3.9 per cent over the previous year. At £293,999, the average UK house price is now the highest on record.
Head of mortgages at Halifax Amanda Bryden noted that alongside this, the level of mortgage lending has reached a two-year high, so buyers are both more active and paying higher amounts to buy.
At the same time, she said further increases in house prices will be “at a modest pace for this year and the next.”
She gave several reasons for this, with the Bank of England expected to slow down the pace of base rate-cutting due to some inflationary elements in the Budget, while less favourable stamp duty measures like a return to old thresholds for first-time buyers and higher rates for second home buyers may slow the market.
Of course, some of these factors might affect some areas more than others. Popular holiday areas such as Cornwall or the Lake District will be far more affected by stamp duty hikes for second homes than a town like Loughborough.
Moreover, it is important to remember that the national figure is an average that will differ from the typical local price, while the property type will also vary. Other variables can include advantages of location, such as the premium that can be placed on properties close to a railway station. The condition of your property will also be a factor.
For all these reasons, it is unwise to try to guess what the value of your house is. If you are keen to put it on the market, getting it valued now at a time when the price is unlikely to change very much in the next year will be a very effective way of ensuring any asking price is a fair and realistic one.
