Wondering how the U.K. property market is doing after the stamp duty holiday has ended? Is it declining as expected? Here are some updates that we have gathered regarding the U.K. property market after the end of stamp duty holiday.

Post Stamp Duty Holiday

Not only that property market maintained its momentum, it continues to do well even during what is usually a quieter period in the year.

According to data by U.K. government’s Land Registry, home prices rose 10% annually in November 2021 and 1.2% from October 2021, pushing the average price of U.K. property to £270,708 (US$368,838). [1]

  • The estimated number of residential property transactions in November 2021—excluding those with a value of less than £40,000—was 96,290, a more than 24% jump from the prior month.

  • The most significant price gains were recorded in the South West of England (e.g. Bristols, Bath), where prices increased by 12.9% in the year to September 2021.

  • The lowest appreciation was in London, where prices increased by 5.1% over the same time period. However, the city remains the U.K. most expensive market, where average prices are at £520,000.

HOUSE PRICES RISE AT FASTEST RATE IN 15 YEARS

According to Halifax, the price of a typical home has risen by more than £38,000 since February 2020, and during the last 12 months alone £27,200 has been added to the value. [2]

  • “This is the biggest one-year cash rise recorded in over 39 years of index history,” a Halifax spokesperson said. The average house price had hit “another new record high” of £278,123.

  • The squeeze on household finances, rising interest rates, inflation do not seem to affect the property market. A shortage of homes for sale and relocations to places with more open space (due to the pandemic) are the factors that continue to increase the house prices as mentioned by estate agents and others.

BEST CITIES TO INVEST IN THE U.K. FOR 2022

For investors interested in U.K. properties, Aldermore’s tracker can give some guides/ comparisons of cities for buy-to-let properties.

Bristol, Oxford and Cambridge are the best cities for landlords to invest in for 2022, according to Aldermore’s Buy to Let City Tracker. [3]

The Tracker analyses and assesses five key indicators that make buy-to-let desirable:

  1. average total rent, the best short-term returns through yield

  2. long-term return through house price growth over the past decade

  3. the lowest number of vacancies as a proportion of total housing stock

  4. the percentage of the city population in the rental market

Should you wish to find out more about investing in off-plan properties in Cambridge, our friendly consultants will be happy to have a thorough discussion session with you. Simply leave your details in the form below and we will arrange a call-back for you.