The Lancaster property market has seen significant ups and downs since 2019, influenced by both challenges and opportunities. A review of the market, using data from 2019 to 2024, helps shed light on the key trends and factors that have shaped home buying and selling in the area.
The accompanying data compares Lancaster’s monthly house sales, presented as a percentage of the six-year average, with the Bank of England’s base rate during the same period.
The Impact of the Pandemic and Post-Lockdown Boom
The first major disruption was the COVID-19 pandemic in early 2020, which caused a sharp decline in the property market. In April 2020, house sales dropped by 86.3% compared to the six-year average. This downturn was mainly due to the lockdown, which made it difficult for people to view homes, obtain mortgages, and move.
However, the Lancaster property market bounced back once restrictions eased. By mid-to-late 2020, sales surged to 47.7% above the six-year average. This recovery was fueled by pent-up demand, government incentives like the Stamp Duty holiday, and an increased desire for more spacious living during uncertain times. Homes sold quickly, and many even exceeded the asking price during this period of heightened activity.
The Truss Budget and Rising Interest Rates
The market remained strong through most of 2021, though it began to stabilize towards the end of the year. The situation changed in mid-2022 due to the “Truss Budget,” which led to economic uncertainty and rising mortgage rates, causing buyer confidence to drop. House sales in Lancaster and across other areas of the UK fell below the long-term average as many potential buyers reconsidered their financial plans.
At the same time, the Bank of England started raising interest rates in response to inflation, peaking at around 5.25% in 2023. Higher mortgage rates made it harder for first-time buyers to enter the market and existing homeowners to move. As a result, the Lancaster market slowed considerably, with sales falling into negative territory during this period.
2024: Signs of Resilience and Recovery
Despite these challenges, the Lancaster property market in 2024 has shown signs of recovery. Sales have stabilized, remaining above the long-term average. Given that this average includes the high volumes of sales in 2020 and 2021, the current figures are particularly impressive and reflect the market’s resilience.
Annual Data Overview for Lancaster (LA1 & LA2 postcodes)
Here is a breakdown of Lancaster’s average property sales (subject to contract) per month:
- 2019: 121 properties (-2% below the six-year average of 124).
- 2020: 122 properties (-1.6% below average).
- 2021: 148 properties (19.1% above average).
- 2022: 122 properties (-1.9% below average).
- 2023: 109 properties (-12.4% below average).
- 2024 YTD: 122 properties (-1.9% above average).
Despite fluctuations, the data highlights steady demand for homes in Lancaster. This is likely driven by the area’s appeal, affordable housing compared to renting, and the shift to remote work, which offers greater flexibility in where people can live. Additionally, sellers have become more realistic with pricing, and buyers are adjusting to the new interest rate environment, continuing to make purchases.
Looking Ahead: Opportunities in the Lancaster Market
As we move through 2024, the Lancaster property market presents opportunities for both buyers and sellers. For sellers, the steady demand indicates that, despite higher interest rates, there is still a strong market for well-priced homes. For buyers, the current market stability could be a good opportunity to secure a home before any further economic shifts.
If you’re considering moving in the next 6 to 12 months, now could be a great time to explore your options. Whether you’re thinking of downsizing, upgrading to a larger home, or simply changing your surroundings, it’s worth getting a free, no-obligation valuation and market appraisal of your Lancaster property. Knowing the current value of your home is the first step to making informed decisions in this dynamic market.
The Lancaster property market has experienced its share of ups and downs, but with careful planning and the right guidance, there are still plenty of opportunities. If you are thinking of moving, we are always here to help.
Thanks for reading
Michelle x
