19 Mar Southwest house prices rise 28.7% in 3-year period
Data analysis by the Experts in Property has revealed an average increase of almost 12% in house prices across the Southwest during 2022 and nearly 29% over the last three years.
Using the latest Land Registry data, analysis by the network of independent estate agencies throughout Cornwall, Devon, Dorset, Somerset and Bristol, shows a year-on-year increase in prices across all property types, equating to a rise in the average house price across the region over the last three years of a staggering 28.7%.
Looking at the sold price data, the average price of a property in England rose by 10.3% between December 2021 and December 2022, higher than the 6.7% rise in London prices over the same period. The increase in the Experts in Property’s region of the Southwest is revealed as an average of 11.9% with individual counties ranging from 9.7% in Dorset to 14.9% in North Somerset.
Average house price and increase – Southwest counties vs London and England Dec 21-Dec 22:
A comparison of regional data from the last three years, between December 2019 and December 2022, revels an even greater polarity with the average price increasing by 12.2% in London and an astonishing 25.2% across England. However, the Southwest yet again outstrips these regions with an average house price rise of 28.7% over the period. The largest growth in prices was seen in Cornwall at around 34% with the average house price surging from £241,058 in December 2019 to £323,343 just three years later.
This strong upward trend was reflected in counties throughout the Southwest region, as the graph shows. During the three-year period, the average house price in Somerset rose by 30.5%, in North Somerset by 29.5%, in Devon by 29.3%, the City of Bristol by 28.9% and in Dorset by 20%.
Steve Moir, chairman of the Experts in Property, said: “This huge increase in house prices across our region is an indication that the market remained strong and resilient during the pandemic as well as the changes in Stamp Duty and the incremental rises in the Bank of England Base Rate, which is currently at a peak of 4%, the highest it’s been since 2008.
“Despite its strength during this challenging period, the market is now under increased pressure with the upwardly moving interest rate and a high level of inflation compounding the ongoing cost-of-living crisis. Transactions completed in December will have been agreed weeks beforehand so it’ll be interesting to see what the early 2023 releases reveal; we feel a new trend will unfold showing a drop in the volume of sales as well as a possible slight dip in prices as the year progresses. Most certainly, the rate of the increase in house prices will slow to a more sustainable rate.
“People are asking if now is a good time to move, or if they should wait. There will always be those who need to move for career, health or financial reasons, but to those who have the option, I’d say there’s never a particularly good or bad time. Over the long term, property is always a good investment.
“Short term, and for the next few years, the economic situation is set for improvement. Although currently still five times the target of 2%, the rate of inflation has been slowly dropping since September and indications are that this will continue. Indeed, in the Spring Budget 2023, delivered by Chancellor Jeremy Hunt this week, the Government’s top priority is to more than halve inflation, from 10.7% at the end of 2022 to 2.9% by the end of 2023, with a focus on getting people back into employment and boosting business investment. The Office for Budget Responsibility predicts that the UK will avoid recession in 2023, and forecasts economic growth in 2024, 2025 and 2026.
“As for the Interest Base Rate, we have enjoyed record lows for the last 15 years and although it has crept up in recent months, economists expect it to rise to a peak of 4.5% in the summer before beginning to ease later on in the year. So, although we may experience some disruption to both supply and demand in property over the coming months due to some economic uncertainty, this shouldn’t last too long before inflation, interest rates and the property markets settle back into a reliable pattern.”
For further information, to speak to an expert in your local property market or for a free property valuation without obligation, get in touch with your nearest branch of the Experts in Property estate agencies – find yours here.