Why are we seeing record house prices?
In June, house prices here in England hit a new high, which will leave many people scratching their heads.
Currently, with inflation hotter than it has been in a generation, and the war in Ukraine creating the much talked about cost-of-living crisis you would expect property to be shaky, but that just isn’t the case.
According to the Halifax, despite expectations the rising cost of living would dampen demand, the average house price reached £294,845 in June after rising by 1.8% - the biggest monthly increase in 15 years.
The lender says a lack of available homes for sale was behind the figures as well as a new trend towards people seeking larger, detached homes.
However, their experts say the growth will slow down, adding that the housing market has, until now, been insulated from the strange economic climate.
The Halifax say the rise in the cost of living is currently being felt most by people on lower incomes, who are less active in buying and selling houses whilst wealthier people are likely to be able to use extra funds saved during the pandemic.
However, inflation, doubled with higher interest rates, will affect affordability, going forward.
We can certainly testify to this with the busiest of the property season very much in full swing as conveyancing solicitors in Staines we at Dale and Newbery have noted the buoyancy, with many contacting us for conveyancing help.
Our region will always be one of the most sought-after places in the UK to invest and live, and the return to normality of the post Covid world has also helped the property market.
It is worth adding, deviating slightly, that property transactions are one of life’s biggest financial undertakings, so if you are thinking about such moves, please ensure that you do your homework and, always appoint reputable solicitors to oversee the conveyancing work.
Our name carries much weight with those moving home in Staines and in the local vicinity, as we have expert local knowledge, so, contact us if you want to discuss such matters.
We will watch developments closely in what is certainly one of the strangest periods in history. It is interesting times.