House price growth in Lincolnshire and the east midlands was higher than London and the south east over the 12 months to June 2017. According to research from Savills, house prices in the east midlands have increased in value by 5.4 per cent in the past year in comparison to 5.1 per cent in the south east and 2.5 per cent in London.
Kirsty Bennison of the Savills research team, comments: “London and the south east have historically seen higher house price growth year on year than the east midlands, so it’s interesting to see the region creep ahead. While London and the south east have seen the biggest house price increases over the past decade, there has been a shift in geographical focus more recently. One of the key factors behind this is that the East Midlands market has more capacity for house price growth, alongside relatively strong demand the region’s housing market remains affordable with growth not curtailed by affordability pressures in the same way as in London.”
The findings were shared at Savills Lincoln’s inaugural Home Truths event at the Hare and Hounds in Fulbeck, Grantham earlier this month. Guests heard short presentations from Roo Fisher, head of residential sales at Savills Lincoln, who discussed local buying trends; and Kirsty Bennison of Savills research who provided an overview of current and future market trends in the Midlands compared to the rest of the UK.
Stamp duty was also high on the agenda, with the Savills research team quashing the prediction of many that it will be cut in November’s Autumn Budget.
Kirsty comments: “There is some speculation that the Chancellor will take a fresh look at Stamp Duty in the Autumn Budget, with some buyers reportedly putting decisions on hold in the hopes rates will be cut. Savills view is that this is highly unlikely unless it is part of a much wider reform of property taxation. Figures published by HMRC show that overall receipts from stamp duty continue to rise. In the second quarter of 2017 the Treasury earned £2.35 billion from stamp duty. 12 months ago that figure stood at £1.98 billion, meaning earnings are up by about 19 per cent year on year, something they are unlikely to cut.”
According to Savills research, South Kesteven has outperformed all other areas with an average 14.7 per cent house price growth over the past ten years, closely followed by South Holland and North Kesteven which have seen ten year growth of 14 per cent and 12.4 per cent respectively. A key driver behind this is the demand to live in its desirable villages and for the strong commuter links to London.
Roo Fisher, head of residential sales at Savills Lincoln, says: “We don’t believe that autumn will bring a change to stamp duty. Rather, we think that buyers will have to continue to factor the higher rates into their budgets and sellers will have to continue to price realistically to achieve a sale as we go into the autumn market. We have a list of applicants waiting to buy and homes which require little or no work in village hotspots such as Navenby and Bassingham are particularly sought after. Our advice to those thinking of selling would be to avoid hesitation and get on the market sooner rather than later to take advantage of the high levels of demand we’re experiencing.
“The convenient commute into London from Newark and Grantham railway stations still presents a strong opportunity with many buyers moving north from the capital. This, combined with the positive increase in property prices in the east midlands indicates that for those looking to sell, now is a good time to do so. The market is strong and demand is high with many of our applicants looking for their next move, but there is still an undersupply of available stock.”
Kirsty adds: “Looking forward, we expect a renewed flow of wealth from London to the commuter belt and beyond as buyers become increasingly willing to exploit the price gap. Buyers will continue to look for properties that offer good value for money with demand strongest for the best in class homes.”