This week our research team has been looking at what is really happening in the property market, both nationwide and closer to home in Lancaster and Morecambe.
When the Nationwide October House Price index came out we were not surprised to see they reported a 5.8% annual house price growth across the UK, the highest rise since January 2015. Property is in demand across the country. Houses are getting snapped up. For example, a house we only put for sale last week in Hest Bank at £500,000 has already been sold for the full the asking price. Interestingly though, the official growth in Lancaster over 5 years is just 1% whilst in Morecambe it slightly higher at 3%. Remember, national press focus on the UK as a whole and often just the South!. It is what we started this blog!
Mortgage approvals were at their highest since September 2007, with 91,454 in the month. This is a lot of people looking to get moved and now that the way we are living looks sets to continue for some time, people are realising what they really want from their next home.
Property transactions have recovered to pre-Covid levels, mortgage approvals increased by 6.9% annually and the average house price nationally now stands at £227,826 across the Uk. In Lancaster, it is £151,493 and in Morecambe, it is £136,118.
A client asked us if this growth can continue. Is it sustainable? It’s an interesting question when you consider what is happening in the economy. Data suggests the recovery of the economy has slowed with only 2.1% monthly growth reported in August and the unemployment rate rising to 4.5% in the three months to August (ONS). It is predicted to get worse as we are now beginning the 2nd lockdown. Despite this, housing market activity has remained robust and it looks set to continue, although at a slightly slower pace which traditionally is always the case!
The housing market will remain open, the furlough scheme has been extended through to March 2021 securing many peoples jobs and mortgage holidays are still available.
It is expected that housing market demand is likely to be maintained over the next few months, with many buyers wanting to make the most of the stamp duty concessions, as well as beating the impending changes to the Help to Buy Scheme.
Time will tell what the future brings, It is certainly not stopping local house buyers – we have already agreed 6 sales this month, and it’s only November 5th!
If you would like to keep update to with the Lancaster and Morecambe housing market, please drop me an email at firstname.lastname@example.org or call me on 01524 843322
Thanks for reading
Ps. What to read next….
If you are interested in what happened in the Lancaster Housing Market last month, you can find out here.