Property prices close to record high, says Halifax

Portsmouth & Southsea Property Market Update – October 2024

By Neil Shaw – Managing Director, Chinneck Shaw, Portsmouth

The average UK house price was close to hitting a record high last month according to mortgage provider Halifax. It says the key reason driving demand is increased buyer confidence due to declining mortgage rates.

Halifax reports that the average price in September was £293,399, just below the record of £293,507 set in June 2022. It also notes that prices have risen for three consecutive months as the housing market shows signs of continued improvement.

“Mortgage affordability has been easing thanks to strong wage growth and falling interest rates,” said Amanda Bryden, head of mortgages at Halifax. “This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year.”

Halifax says house prices were 4.7% higher compared to a year ago, marking the fastest growth rate since November 2022. This increase partly reflects the subdued market activity from a year earlier. Over the past 12 months, the average property value has risen by about £13,000, recovering from previous declines.

Halifax’s house price data is based on its own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales.

Why lower inflation matters to the property market

With inflation now below the Bank of England’s 2% target, there is potential for further interest rate cuts. These would encourage mortgage lenders to lower rates on new fixed-rate home loans so improving affordability for millions of borrowers.

At the same time, lower mortgage rates could potentially ease pressure on landlords, which might help slow the pace of rent increases.

Property market awaits Stamp Duty changes

People looking to buy, sell or move house should remember that the current nil-rate threshold for paying Stamp Duty is set to expire in March 2025. It had been temporarily raised from £125,000 to £250,000, and from £300,000 to £450,000 for first-time buyers. But with the scheme coming to an end, more people, including some first-time buyers, will fall within the ambit of the tax.

In the past, the prospect of changes to Stamp Duty exemptions has tended to influence market activity as buyers rush to complete transactions before deadlines.

The upcoming changes are likely to impact nearly nine in ten property purchases in England, up from six in ten currently. The number of first-time buyers paying Stamp Duty is expected to triple, from 8% to 26%, once the threshold reverts to £300,000. At a price of £300,830, a buyer will have to pay an additional £2,500 in tax.

Local first-time buyers will need to move quickly to take advantage of current exemptions the nil-rate threshold is withdrawn.

Some recently listed homes for sale in Portsmouth & Southsea – 

Townhouse for Sale in Southsea – £525,000

Apartment for Sale in Southsea – £325,000

Cottage for Sale in Westbourne – £225,000

 Flat for Sale in Portsmouth – £179,995

Considering an autumn move in Portsmouth or Southsea

Both Portsmouth and Southsea have strong demand for properties for sale and to rent, we have many first-time buyers and renters looking for a home in and around the surrounding areas.

If you are considering a move please feel free to contact us, either for an informal chat about the market and how we might help you with this or to book a market appraisal.

Or try our Instant Online Valuation tool.

To see the very latest homes coming to the market, click ‘Search’, this lists all of the very latest homes as they come to the market.

Neil Shaw – Chinneck Shaw

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