• Thu. Jun 30th, 2022

House prices in parts of Gloucestershire are rising by the hundreds a day

ByRandall B. Phelps

May 22, 2022

House prices are rising by nearly £200 a day in parts of Gloucestershire. Average house prices in the Cotswolds rose 15% in the year to March, according to the latest figures from the Office for National Statistics.

This represents an increase from £415,034 to £477,329 in one year, meaning that on average house prices have risen by £62,295, the equivalent of £171 per day. In Stroud, prices rose by £39,688, an average of £109 per day. House prices in the area saw a 13.3% increase in the year to March, from £299,154 to £338,842.

There was also a 12.6% rise in house prices in Forest of Dean, an increase of £34,481 over the year (£94 per day). The average house now costs £307,780, up from £273,299 a year ago.

READ MORE: Fears hundreds of homes could be built near sewage treatment plant in Gloucester

Average UK house prices rose 9.8% in the year to March 2022, from 11.3% in February 2022. The average UK house price was 278,000 £ in March 2022, which is £24,000 more than the same period last year.

Nathan Emerson, chief executive of Propertymark, which represents estate agents, said: “The year-on-year increase shows there is still a lot of momentum in the housing market, but we are now seeing signs of cooling.

“But we keep coming back to the issue of low supply which is the main driver of price increases. Our member agents tell us this is still a problem and the number of people looking to buy remains good higher than the number of properties they have listed.This, coupled with incredibly low borrowing rates, is likely to hold prices down in the short to medium term.

Region

Prices in March 2022

Prices in March 2021

Annual change

Average per day

annual percentage change

cotswolds

£477,329

£415,034

£62,295

£171

15

Stroud

£338,842

£299,154

£39,688

£109

13.3

Forest of Dean

£307,780

£273,299

£34,481

£94

12.6

Gloucestershire

£321,855

£289,475

£32,380

£89

11.2

Tewkesbury

£334,353

£304,996

£29,357

£80

9.6

Cheltenham

£324,621

£297,138

£27,483

£75

9.2

Gloucester

£234,970

£213,793

£21,177

£58

9.9

Mike Scott, chief analyst at national real estate agency Yopa, also said monthly growth was expected to pick up in next month’s report, with the annual growth rate remaining around 10%.

He said: “House prices cannot continue to defy gravity forever, but the current shortage of homes for sale and high demand from people still reassessing their lives and priorities for the post-pandemic world will likely continue. to support prices for at least the rest of 2022, and we do not expect nominal house prices to fall significantly this year.

“However, with inflation continuing to rise and the first signs that the housing market is beginning to calm down, it would not be surprising if we ended the year with house prices rising more slowly than others. price, and therefore falling in real terms.”

Between the start of 2016 and the end of 2019 there was a general slowdown in the growth of house prices in the UK, mainly due to a slowdown in the south and east of England . The start of 2020 saw a recovery in annual housing market growth before the coronavirus restrictions were put in place at the end of March 2020.

Recent price increases may reflect a range of factors, including some possible changes in housing preferences and a response to changes in property transaction taxes in countries. In July 2020, the Chancellor announced a suspension of tax paid on property purchases in England and Northern Ireland, with similar suspensions announced in Scotland and Wales.

In England and Northern Ireland properties up to a value of £500,000 would not be taxed, while the thresholds for Scotland and Wales were £250,000. This can allow sellers to charge higher prices as buyers’ overall costs are reduced.

The tax holiday for Scotland ended on March 31, 2021. It was extended until June 30, 2021 in Wales, while in England and Northern Ireland it was extended until the same date but the threshold will then decrease to £250,000 before ending in September. 30, 2021.

This may have explained a rush in demand in the middle of 2021, as annual price increases climbed to a 13.5% increase in the year to June 2021. There was a another weaker rush in September, with an annual growth of 11.5% that month.

The East Midlands was the region with the highest annual house price growth, with average prices rising 12.4% in the year to March. This is up from an 11.6% growth rate in February.

The weakest annual house price growth was seen in London, where average prices increased by 4.8% in the year to March 2022, compared to 7.8% in February 2022.