Category: News

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Will the general election affect house prices?

The general election is here and Thursday will see us all go to the polls to decide on who will be leading the country.

Although housing is not top of everyone’s agenda this time around, it’s still an important subject that many home owners, and soon to be first time buyers, are watching very closely.

But has the general election impacted houses so far and will it cause any significant changes once the election has taken place?

Has the general election affected house prices so far?

Several years ago, house prices were increasing rapidly which was great news for current owners but not so much for those looking to step onto the housing ladder.

In 2023 and 2024, prices have really slowed. Many industry bodies have suggested that prices are still rising but nothing like they have been doing. We reported in June that house prices had risen 0.4 per cent just in time for summer. And in the last 4 weeks, house prices have risen again by 0.1 per cent, exceeding expert predictions.

But is the election the root cause? The team at Benwell Daykin estate agents don’t necessarily think so.

There is talk soon of interest rates lowering and that positive news could be restoring further confidence in the market.

Will the election alter house prices after July 4th?

What about after the election?

If the polls are correct, it looks like we’re soon to have a new government in place and yes, this could put some energy into the market.

Looking at historic data, however, the team at Benwell Daykin aren’t expecting much to change.

Nationwide have too done some research and they have concluded that after the past general elections there hasn’t been any real volatility in the market. Big price movements tend to come with other economic trends.

Nationwide also extended their research to mortgage approvals and again, there was no significant change in the amount of mortgage applications and approvals during and immediately after an election period.

Having said this, other research conducted by Compare my Move did conclude that house prices roses by an average of 4.6 per cent following a general election.

What can we conclude?

By using our knowledge and the above research we conclude that there won’t really be a significant impact on house prices when it comes to the election.

There may be small changes but on the whole, we’re not going to see a huge amount of volatility.

Bigger things to watch out for which may alter house prices significantly would be a change in inflation or a large drop (or increase) in interest rates once again.

What do you think yourself? Let us know your thoughts.

Find out how much your property is worth

If you’re looking for an up to date valuation of your property, contact Benwell Daykin today.

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Nottingham Property Prices Sumer 2024

UK house prices are growing again throughout the country.

The latest data for May, released at the beginning of June, suggest prices rose 0.4 per cent in the last 4 weeks. This data comes straight from Nationwide.

House prices have remained fairly static throughout Spring 2024, however a small rise in wages and a dip in inflation has meant prices are on an upward trend once more.

The average UK house price now stands at £264,249, compared to £261,962 in April.

Nottingham house prices in Summer 2024

When looking at Nottingham specifically, the average house price is now over £200,000. According to Hometrack, the official figure is £201,200.

This is a 4.9 per cent growth year on year and means that Nottingham house prices have had the biggest gains across the whole country in the 12 months leading to April 2024.

Benwell Daykin expects this rise to continue throughout the summer.

When focusing across Nottinghamshire, to include Ruddington where we are based, the average house price is higher at £238,322 according to Rightmove.

Looking at the data solely for Ruddington, this average price increased further to £333,957.

Mortgage rates for Summer 2024

According to Moneyfacts, the average mortgage rate for a 2 year fixed deal is current 5.29 per cent. This is up slightly on April 2024 which was 5.83 per cent.

The average rate on a 5 year fixed deal is now 5.49 per cent.

This rise is likely due to the Bank of England’s decision to keep the base rate at 5.25 per cent during their last meeting.

The general election and property prices

Many people are asking Benwell Dayking if there will be significant house price movements as a result of the general election.

Data has also been analysed from previous general election periods and it is safe to say that generally house prices are not affected.

How much is your property worth in Summer 2024?

The only way to find out accurately how much your property is worth is by asking an experienced agent, like us, to conduct a valuation.

Our valuations are free of charge with no obligation to use our services.

Simply call Benwell Daykin, estate agents in Nottingham, on 0115 990 2007 or use our house valuation form to get in touch.

 

 

 

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The surprising property type with rapid house price growth

It’s likely you will have heard reports that house prices have dropped over the last few months.

Although this is true in some areas, prices are beginning to rise once more according to Halifax. This is of course good news for home owners looking to sell or those looking to release some equity.

But there’s one particular property type with prices rising faster than anything else – flats.

With borrowing costs higher than they have been for a number of years, buyers are struggling to find affordable properties. This means they are now turning to smaller properties in an attempt to keep their monthly repayments down.

First time buyers in particular are looking for more affordable options and so they are turning to flats to purchase for their first home. The increase in demand is now driving prices upwards faster than most other property types.

Property prices will continue to rise throughout 2024

Benwell Daykin predicts that prices of other property types will soon rise as quickly.

There is now much higher confidence in the market with the highest number of mortgage approvals than any time in the last 18 months. Affordability, however, is still very much a problem for some and this could last for a while longer. It is expected that the Bank of England will keep interest rates at 5.25 per cent when they next meet on Thursday 9th May.

Benwell Daykin expects this to begin to drop by the end of the year, if not sooner.

So, there may still be some challenges in the market. However, if you’ve been putting off placing your home on the market, it now looks like activity is beginning to bubble once more.

Is it time you found out how much your house is worth in the current climate? The average Ruddington property price is now well over £300,000.

Talk to Benwell Daykin today on 0115 990 2007 to receive personalised property advice.

 

 

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Easter Colouring Competition 2024

Click here for the 2025 Easter Colouring Competition.

Benwell Daykin’s annual colouring competition is back!

Every year, Benwell Daykin Estate Agents runs a competition in line with Easter.

The competition has several different age categories, with a simple Easter design for children and a more complex design for adults.

Whether you have children who would like to take part, or if you simply want to put your adult colouring skills to the test, download our 2024 Easter designs here.

Please return entries to the office on High Street in Ruddington by 29th March 2024.

And if you’d like to find out how much your property is worth with a free valuation, we can speak to you about this at the same time!

Good luck to everyone taking part and Happy Easter!

Children’s Competition Download

Adult Competition Download

 

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When Will Mortgage Rates Drop?

Many people across the UK are asking when will mortgage rates will drop?

For those who already own a property, the prospect of remortgaging may seem daunting since rates increased in 2023.

Those looking to move to a new property may also be waiting for mortgage rates to drop to make their next purchase just that bit more affordable.

When will mortgage rates drop?

The good news is that they are starting to drop already.

It was reported this week that rates dropped below 4% at Nationwide, the UK’s largest building society. The rate is 3.84% at the time of writing.

This is the cheapest deal provided by the company for 8 months and is also significantly under the Bank of England’s base interest rate.

This is only available currently to those who are remortgaging although it’s still not bad news for first time buyers; the rate offered to those looking to take a first step onto the property ladder is only 0.01% higher at 3.85%.

Both these products are 5 year fixed rate deals and are significantly lower than the average offered by other lenders which stood at 5.2% this week.

Will other mortgage lenders follow suit?

Although some lenders are following the trend of sub 4% products, some are actually increasing.

Santander recently increased their rates on some mortgage products by 0.2% for remortgages.

This though is still well below the average last summer when rates stood at around 6%.

Should you wait for rates to drop further?

Unfortunately, we don’t have a crystal ball which will tell us the future relating to mortgage rates.

As we’ve seen this week, rates can go up and down and fluctuate daily.

For now, we feel that rates are likely to stick at around this mark for the next few months.

The best advice we can give at Benwell Daykin is always talk to our qualified mortgage broker who will be able to advise you in more detail.

Products can vary depending on your own circumstances too, so it’s always a good idea to compare the whole of the market with a broker and find out which products match your criteria.

For some, this will now be the best time to buy a new property as rates are now becoming more affordable.

 

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Why Hasn’t The UK Housing Market Crashed?

After COVID-19 and following the sharp inflation rate rise, many were expecting house prices to crash.

The reality is that house prices did indeed dip, but not by a huge amount.  According to Nationwide, prices have dropped just 2% in 2023.

What’s more, other reports have suggested that although there is an overall drop for the year, prices are actually on the up since the Autumn.

So why haven’t prices dropped significantly? The team at Benwell Daykin list some of their thoughts.

Interest rates have remained stable

When the Bank of England began to raise interest rates, many took a step back from looking to move due to affordability. If interest rates rise then mortgage costs do too. This meant that many home owners had to reduce their prices to continue to entice buyers.

Now however, interest rates have remained at a steady 5.25 per cent since August 2023.

House prices have already dipped to reflect this change and have remained stable along with the rate of interest.

Unemployment remains steady

When the population struggles to find work then this, of course, has a knock on effect on the economy.

Unemployment has risen in 2023, however it is much lower than both 2014 and 2021 according to Trading Economics.

unemployment uk economy figures

Mortgage rates are coming down

When interest rates began to rise, so did mortgage rates. Some home owner’s monthly payments began to triple.

Some others had made offers on higher priced houses but suddenly couldn’t afford them when rates went up.

As such, home owners again lowered prices to combat this.

Now mortgage rates are dropping once again. Although they are certainly nowhere near where they were a couple of years ago, some lenders now have products at below 5 per cent.

If rates fall further, this could actually boost house prices.

This puts confidence back in the property market and heightens affordability once again.

Inflation has slowed

Inflation cooled more than expected in October 2023, from 6.7 per cent to 4.6 per cent.

It has now more than halved from its peak of 11.1 per cent in October 2022. This has been a relief for many who are struggling with the cost of living.

Inflation slowing is another confidence boost to the property market.

So will we see a market crash?

Unfortunately, we don’t have a crystal ball here at Benwell Daykin.

All the above seems very positive and if things continue as they have been doing, we would expect to see house prices increase rather than decrease.

However, the world and the economy is ever changing and we just don’t know what tomorrow might bring.

How much is your house worth right now? Where ever you are in Nottinghamshire, contact our friendly team to find out today.

 

 

 

 

 

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Nottingham Property Prices Winter 2023

A property price increase

Today Nationwide have stated that property prices are on the rise once again.

Prices had dipped marginally in most areas of the country and many experts predicted there would be a further decline throughout the remainder of the year. Thankfully, this now appears not to be the case.

What about Nottingham property?

Nottingham has always remained one of the strongest area for housing price growth across the country. This year is no exception.

Despite decreases in almost every area of the UK, Nottingham hasn’t really been hit. Prices remain strong and growth has actually continued!

If we look at Hometrack’s data, Nottingham sits top of every major UK city for growth in the last 12 months. This stands currently at +2.9%. Sitting at second place is Birmingham at +2.7% and Sheffield with +2.3%. If we compare this to London, they saw a decline in the last year with -0.5%.

Looking short term, Nottingham prices increase in the last 3 months by 0.3%.

Why did property prices decrease in other areas?

Property prices have decreased slightly in 2023 mainly due to the rise in interest rates. This meant that more people were cautious when it came to applying for mortgages. As a result, less people were then looking for houses which brought prices down.

It is important to note however that it is only a small decline. Prices dropped across the board by just -1.1% in 2023. (Hometrack)

What is the average property price now?

The average home increased in price from £257,808 in September to £259,423 in October, according to Nationwide‘s latest house price index. This index is based on their own mortgage data but is very accurate as they are one of the largest UK lenders.

In Nottingham, the average property price is now £202,400. According to our trusted Nottingham mortgage broker, the average mortgage rate is now also just over 5 per cent.

Why have house prices generally increased?

Data suggests that many buyers have been holding off buying due to the rise in mortgage interest rates. Now it appears that they cannot wait any longer and have decided to purchase, regardless.

Other contributing factors include strong employment and a short supply of available properties.

What does this mean for home owners?

For those waiting to sell, you’d be forgiven if you were putting this off after listening to the national news.

Whilst we would advise anyone to remain cautious with the constant changing interest rates, now is definitely not a bad time to place your property on the market.

With the increase in buyer confidence now across the board we should see more people looking at every property and battling to make the highest offer.

How much is my property worth?

We can offer you a free, no obligation property valuation. Simply call us on 0115 990 2007 or use the form below.

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    Gas Boiler Ban Changes – What Does This Now Mean For Homeowners?

    You may have heard recently that there’s been another change to gas boiler policies in the UK.

    Until recently, the UK was to phase out gas boilers in new build homes by 2025 and ban them completely from new homes by 2033.

    This, however, has now been extended to 2035.

    What was the original gas boiler ban plan?

    The UK government has been asking homeowners to switch their traditional gas boilers to heat pumps as a more environmentally friendly option. Originally they were offering a grant of £5,000 although this has now been increased to £6,500.

    The uptake for this has apparently been fairly slow which could be a reason for the change in deadline.

    What is a heat pump?

    In the shortest possible terms, a heat pump transfers captured heat from the air outside to the inside of a property. This is then used to fuel the property’s central or underfloor heating and in some cases also provide hot running water.

    How does a heat pump benefit home owners?

    Heat pumps are renowned for their energy efficiency, resulting in significant savings on heating costs compared to traditional gas boiler systems. They achieve high energy efficiency ratios, leading to lower utility bills and reduced carbon emissions. Essentially, although heat pumps can have a large initial outlay, there are savings to be had.

    Landlords could also benefit from heat pumps as another way to entice tenants to rent their homes. During the current cost of living crisis, any reduction in household bills for tenants can be seen as a positive thing.

    If you’re considering applying for a grant, you can do so on the government website.

    What will these new announcements mean for home owners?

    Firstly, if you were considering making your home more energy efficient then you now save even more money with a larger grant. You can apply for this via the government website.

    Secondly, if your boiler needs to be replaced imminently then you should still have the choice as to go for a lower cost traditional system or a more expensive eat pump. This could be a big plus if you’re feeling the pinch with rising mortgage costs.

    Thirdly, if you’re looking to sell your home in the near future, this could be an attractive selling point. We would advise though to do your calculations to ensure the profits made on selling your home outweigh the cost of a heat pump. Benwell Daykin can help with advising you how much your property is worth. Just call 0115 990 2007 to get a free property valuation.

    If you’re wondering what option to choose, contact Benwell Daykin in Ruddington who will be able to offer some advice based on your situation.

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    Easter Colouring Competition

    Easter Colouring Competition!

    Benwell Daykin’s annual Easter competition is back for children up to 11 years old.

    To enter, all you have to do is download the image, get your best crayons or felt tip pens and let your creative imagination run wild!

    Prizes will be awarded for favourite designs in three categories; Under 5s, 6-8 years old and 9-11 years old.

    Download Here

    Please ensure you write your name, age and phone number (parent/guardian) on each entry and either post it to our office or deliver it by hand before Good Friday.

    Sponsored by FYSLA Nottingham Chauffeurs.

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    House prices continue to grow

    The average UK asking price of a home has reached a record £323,530.

    Prices roses by 1.1 per cent in September 2020 which now means prices are 5.5 per cent higher, or £16,818, than the same time last year.

    Experts are suggesting that growth will continue up until the new year where it could peak at 7 per cent.

    Reasons for this boom in prices could be due to stamp duty cuts, pent up demand post lockdown and households seeking more space now they are working from home.

    Sales agreed are also up for October. They are 58 per cent higher than the same time last year.

    Average house prices across Nottingham currently stand at £159,100.

    Source: Rightmove

    How much is your house worth?

    Find out how much your property is now worth by calling our sales team on 0115 990 2007. You can also email us on info@benwelldaykin.co.uk.