Last Updated on March 22, 2024 by Nasir Hanif
Investing in a property anywhere in the UK is always a great decision and requires a lot of effort to deal with the entire process. Buying a house in the UK can be a stressful time for a lot of people, from the anticipation of what it would look like to deciding which area you could afford. The uncertainty of it all can get to you.
But there are things you could do to get a better grasp on the process and get the home you’ve always wanted. One thing that is constant in a property market is- change. The property prices tend to rise or go down with time, and many factors determine this variation.
There are several letting agents in Buckingham, Hertfordshire, Battersea and other parts of London who possess the expertise to filter out the best property options to meet the expectations and budget of the buyer.
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OVERALL PRICING IN THE UK
The fluctuation in property prices is observed regularly in different regions of the UK, making it difficult for people to predict them. However, the prices have alleviated in the past year and are seen spiking up on the property charts in recent times.
The number of new listings is higher than the number of residential units sold in many areas of London and the UK. However, the average housing prices dropped to £256,000 in July, followed by a steady rise in the following months. The price tags vary according to the property’s location, and the overall prices have increased by 8% compared to last year, and August 2021 has seen the highest property prices in a long time.
FACTORS DETERMINING HOUSING PRICES
Properties like detached and semi-detached townhouses, villas, studio apartments, and modern flats are built along the streets of London, England and beyond. People pick the property according to their choice, location and necessity while buying one.
Property prices in the UK reached a record-breaking high in June 2021 and continue to rise in September 2021 and after. Many factors influence the changes occurring in the UK’s property market from time to time.
Economic conditions:
The prevailing economic conditions in a neighborhood or a city is a major contributing factor that can help the sellers decide on setting a price tag for their property. The rate of employment and income status prevailing in a region impacts the overall prices set by mortgage lenders and property owners.
Usually, it is difficult to determine the property prices based on this factor but not impossible.
Buyer’s demand:
It is still a dream for many to own a property and people from across the world are aiming at purchasing one in the suburbs of the UK. Be it for investment purposes or for settling down in a particular region, Britain has welcomed several buyers in the last few years and the numbers are only increasing with every passing day.
The number of people investing in property has surpassed the number of properties in certain regions like London and the neighbouring boroughs. This has led to the surge in the asking prices by 0.8% thereby increasing the overall property values in most places.
The soaring demand from multiple buyers for a house in London is a primary reason for the rise in property values.
Stamp duty holiday:
With the introduction of the stamp duty holiday last July, people planning to invest in properties in the UK were exempt from paying their stamp duty and taxes. This method saved their spending in thousands. The overall costs decreased for the buyer, and this gave a chance for property owners to increase their rates without affecting buyer’s pockets in most cases.
Most houses in prominent regions of England and London have high selling prices because of the location, increasing demand, size and property type. Stamp duty holiday will be closed by the end of September 2021, due to which people are seen gearing up the entire process of their property purchase.
However, this situation does not promise any dip in property prices in the near future with the increasing demand among buyers.
Mortgaging rates:
Purchasing a property in London is not as simple as it sounds. The entire process is a huge investment and involves the role of money in every step. Most buyers apply for a mortgage loan from banks or local land lenders at the best LTV and lowest interest rates.
Compared to the national banks, the local lenders provide mortgages that are customizable to an extent according to the buyer’s convenience. The interest rates have further gone down up to 0.87% in recent times, enabling more buyers to come forward to invest in a property in the UK.
The decrease in mortgage rates is one of the main factors that determine a seller’s opinion on increasing the property price.
