Cheshire house prices rocket at their fastest rate in 17 years

House prices in parts of Cheshire are rising at their fastest rates in almost two decades.

Across the UK, house prices soared in the most recent year due to the impact of the pandemic and stamp duty cuts leading to higher asking prices.

In Cheshire East, the average home cost £266,439 in June this year.

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That was 17.1 per cent higher than the average cost of £227,459 in June last year, according to the new figures from the Office for National Statistics.

That’s the biggest annual jump in prices since the year to January 2005.

In the past year, homes in the area have had an extra £38,980 added to the price.

In Cheshire West and Chester, prices rose 16.5 per cent, from £207,525 to £241,723, again the biggest increase since January 2005.

Warrington saw a 17.1 per cent rise, the biggest since April 2005, while prices were up 9.3 per cent in Halton.

Nationally, average house prices increased by 13.2 per cent over the year to June 2021.

This is the highest annual growth rate the UK has seen since November 2004.

That meant UK average house prices reached a record high of £266,000, up by £31,000 compared to this time last year.

Average house prices increased over the year in England to £284,000 (13.3 per cent), in Wales to £195,000 (16.7 per cent), in Scotland to £174,000 (12.0 per cent) and in Northern Ireland to £153,000 (9.0 per cent).

House price growth was strongest in the North West where prices increased by 18.6 per cent in the year to June. The lowest annual growth was in London, where prices increased by 6.3 per cent.

The most recent year covers the full extent of stamp duty cuts put in place across Britain following the first lockdown.

The ONS suggests the change in tax may have allowed sellers to request higher prices as the buyers’ overall costs are reduced.

On July 8, 2020, the Chancellor of the Exchequer announced a suspension of the tax paid on property purchases with immediate effect in England and Northern Ireland.

Similar suspensions came into effect slightly later, on July 15 in Scotland and July 27 in Wales.

In England and Northern Ireland, properties up to the value of £500,000 would incur no tax, while the threshold for Scotland and Wales was £250,000.

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The tax holiday for Scotland ended on March 31, and ended on June 30 in Wales. In England and Northern Ireland, the threshold was reduced from £500,000 to £250,000 on June 30, with the tax holiday ending on September 30.

The type of house in demand may also be affecting average prices, as the pandemic has made people reassess their home preferences.

Prices for detached homes rose 15.6 per cent in the year to June, with a 13.5 per cent rise for semi-detached, and a 14.0 per cent rise for terraces.

However, flats only saw prices rise by 8.4 per cent over the year.

Bank of England analysis reported ongoing strong demand for housing across most of the UK in the quarter to June and a shortage of properties for sale, which pushed up prices.

The Royal Institution of Chartered Surveyors said June was a strong month for sales, but new buyer demand eased as Stamp Duty holidays began to end.

Cheshire Live – Cheshire