Belsize Park Homes Buck National Trend

Tuesday, April 12, 2022

At Stones Residential, we take a great interest in what is happening in the national housing market. Of course, we care most about Belsize Park, and a lot of the work we do is so we can compare the local market with the national one.

It won’t surprise you to learn there are many differences between the Belsize Park market and the UK property market.

House prices are growing quickly across the UK

According to the Halifax, house prices reached a record high in February 2022, standing at £278,123. Property prices were also recognised as increasing at their fastest annual pace of growth in 15 years.

The rate of house price growth as of February 2022 stood at 10.8%, the strongest level since June 2007, when it stood at 11.9%.

Russell Galley, Managing Director, Halifax, spoke extensively on this subject, saying: “The UK housing market shrugged off a slightly slower start to the year with average property prices rising by another 0.5% in February, or £1,478 in cash terms. This was an eighth successive month of house price growth, as the resilience which has typified the market throughout the pandemic shows little sign of easing. Year-on-year prices grew by 10.8%, the fastest pace of annual growth since June 2007, pushing the average house price up to another record high of £278,123. Two years on from the start of the pandemic, average property values have now risen by £38,709 (+16%) since February 2020. Over the last 12 months alone, house prices have gained on average £27,215. This is the biggest one-year cash rise recorded in over 39 years of index history.”

How is the house market in Belsize Park faring?

According to Rightmove, the Belsize Park housing market is faring as follows:

Properties in Belsize Park had an overall average price of £1,118,063 over the last year.

The majority of sales in Belsize Park during the last year were flats, selling for an average price of £894,626. Terraced properties sold for an average of £2,164,265, with semi-detached properties fetching £3,848,125.

Overall, sold prices in Belsize Park over the last year were 5% down on the previous year and 9% down on the 2017 peak of £1,232,989.”

Interestingly, Belsize Park house prices appear to buck the trend of what is happening nationally. Given the quality and price of properties in the local area, this isn’t a surprise.

Uncertainty over the future impact property market

It is concerning to say that due to the uncertainty in many things right now, the housing market is likely to be affected as we move forward.

This issue was raised by Russell Galley from Halifax, saying; “Looking ahead, as Covid moves into an endemic phase and almost all domestic restrictions are removed, geopolitical events expose the UK to new sources of uncertainty. The war in Ukraine is a human tragedy but is also likely to have effects on confidence, trade and global supply chains. Surging oil and gas prices are one immediate consequence, meaning that inflation in the UK – already at a 30-year peak – will remain higher for longer. This will add to the squeeze on already stretched household incomes. While increases in Bank rates look likely in the near term, the extent of the rises will depend on how it affects prices and companies’ approaches to pay over the months to come. These factors are likely to weigh on buyer demand as the year progresses, with market activity likely to return to more normal levels and an easing of house price growth to be expected.”

It is likely the following factors will play a role in house prices in the immediate future:

  • The conflict in the Ukraine
  • Rising costs of living
  • Increasing fuel prices
  • Changes in bank rates
  • After-effects of Brexit

We appreciate these are all serious matters that need to be considered in their own right. Of course, they also impact the housing market, and it is vital people are aware of these factors as we move forward.

Contact Stones Residential for all your Belsize Park property needs in 2022

If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.