Taylor Scott International News
House price growth in England doubled in February compared to the previous month and was led by a surge in buy to let sales due to the new stamp duty surcharge due to come into effect in April. Average property prices increased by 0.8% or £2,277 on a monthly basis and demand from landlords and second home buyers contributed to a 12% month on month rise in sales. The data from the latest Your Move index also shows that average prices were up 6.2% year on year, but this drops to 4.6% in London and the South East are excluded. It rakes the average house price to £289,229. London house prices rose 6.8% or £36,903 in the past year, taking the average price to £582,783 and exceeding the average Londoner’s £35,333 annual salary. Hull’s house price rise of 0.9% in a month to hit new record of £111,409, boosted by new jobs and City of Culture status. Meanwhile, the strongest sales were in Sandbanks, with property purchases in Poole up 21% year on year due to demand for luxury flats with views over Poole Harbour and Sandbanks. The report suggests that wealthy buyers are seeking to avoid the additional stamp duty surcharge and property prices have also risen as a result, up 11.6% over the year, as affluent buyers place a premium on luxury homes by the sea. ‘Growth could be as a result of buy to let investors rushing to complete quickly to avoid April’s additional 3% Stamp Duty surcharge, which has also seen sales shoot up 11.8% since January,’ said Richard Sexton, director of e.surv chartered surveyors. He believes that February’s house price growth is fantastic news for home owners, particularly those considering cashing in on the additional demand and making the most of the current sellers’ market. ‘Typical property values are now £16,866 higher year on year, the fastest annual growth rate seen in eleven months, driven by the gulf in the number of aspiring home buyers, compared to the limited supply of homes for sale,’ Sexton added. The index figures reveal that the East of England is outranking London with the fastest growing property prices of all regions, with a 7.2% uplift in the last 12 months. ‘This pace is being fuelled by commuter towns, as London’s workers search for more affordable housing. The trend towards higher house price growth in cheaper areas can also be seen elsewhere,’ Sexton explained. He also pointed out that while house prices in Yorkshire and Humberside have remained flat on a monthly basis, property values in the City of Kingston upon Hull have hit a new record of £111,409, up 0.9% compared to the previous month, as the city has one of the lowest average home values in the country. ‘The upswing in Hull’s home values is due to the increase in new jobs resulting in more demand, with major firms including Samsung lifting employment in the city. Recently winning City of Culture 2017… Taylor Scott International
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