UK house prices have increased by 3.5% from the start of the year to April.
While this presents firm growth, it is worth noting that this is down from a 7% annual increase in March, marking the first slowdown in annual UK house price growth since December 2023.
In the ever changing economic markets we’re living in, with increasing tension in the Middle East, the ongoing war in Ukraine, and changes to the political landscape, a decrease was always on the cards.
One of the key drivers behind this slump has been political changes to Stamp Duty Land Tax (SDLT), which came into effect in April.
The reduction of the nil rate band means that many buyers now have to pay more Stamp Duty on their property purchase, which has naturally impacted demand.
This growth slowdown means that the average UK property now stands at £265,000.
While this may seem like a reachable milestone, it still presents a significant hurdle, as the average UK gross salary stands at around £37,430 per year.
With lenders typically offering 4 to 4.5 times your income, you would need a deposit of just under £90,000 to be well placed to purchase at that level.
This doesn’t take into account the funds you will need for conveyancing, surveying and moving. We’d advise budgeting £5,000 to £10,000 for these additional costs.
If you’re a first time buyer, you will benefit from a nil Stamp Duty rate up to £300,000. However, if you’re already a homeowner moving home, you would need to allow for an additional £3,250. If you’re purchasing an additional property, this increases to £16,500.
When looking at this from the perspective of property in London, the average price as of April is £567,000, meaning that the odds are very much stacked against those hoping to get onto the property ladder.
At Stokemont, we understand the importance of property purchase and home ownership. With finances becoming ever tighter, the last thing you want is to buy a property with hidden defects, costs or issues.
You can avoid this by arranging a pre purchase home survey. We recommend Level 2 Surveys for flats and Level 3 Surveys for houses.
Completing a survey ensures you’re fully aware of any defects and the associated costs you may need to address. In most cases, our clients achieve a price reduction to account for the identified issues, saving them both hassle and expense in the future.
Want to know the cost of a home survey? Use our instant quote now!
