With the stamp duty holiday encouraging many people to enter the property market, this is an apt time to consider the cost of buying a home. Purchasing property is a major investment, and this is why the stamp duty holiday has been so well received.
Having the chance to save up to £15,000 on the overall cost of buying a home is welcoming to buyers. However, prospective buyers shouldn’t just think about the upfront cost of buying property, they also need to consider the ongoing costs.
It is helpful to think of your home as an asset, as well as the place you live. A recent study suggests many homeowners in London benefit from house prices rising at a faster rate than the cost of maintaining property.
In some ways, these homes pay for themselves!
At Stones Residential, we are pleased to say we have helped many people enter and enjoy the Stanmore property market. If you are looking for guidance, or you need to stay in touch with the latest market news and research, we can help.
How much do you spend maintaining your property?
GetAgent.co.uk looked at each local authority in England and the total current upkeep costs of a property on an annual basis, based on: -
The factors considered by GetAgent in their analysis include:
The annual council tax bill in each area.
The annual cost of gas and electricity in each area.
The average cost of a water bill.
The average cost of combined buildings and contents insurance.
The average annual maintenance cost of a home.
The company also looked at the annual house price growth in an area, and came up with findings based on properties paying for themselves.
Budget for the cost of maintaining your home
Across England, the average cost of maintaining property for a year is £6,406. This is comprised of:
£1,818 in council tax payments
£1,139 in energy costs
£397 on water payments
£146 in insurance fees
£2,547 on maintenance costs
However, the average price of property in England has risen by £6,220 in the past 12 months. The average homeowner is therefore £174 ahead when comparing property price rises with property outlay in the past 12 months.
43% of areas at local authority level have seen a greater rise in property prices than in the cost of maintaining property.
How is the current housing market in Stanmore?
Rightmove analysis, at the end of October 2020, says the following regarding Stanmore house prices; “Properties in Stanmore had an overall average price of £624,064 over the last year. The majority of sales in Stanmore during the last year were semi-detached properties, selling for an average price of £599,870. Flats sold for an average of £383,618, with detached properties fetching £1,149,000.”
It also talks about a rise in house prices, saying; “Overall, sold prices in Stanmore over the last year were 4% up on the previous year and 3% down on the 2015 peak of £642,015.”
Colby Short, Founder and CEO of GetAgent.co.uk, commented: “It's been a topsy turvy last 12 months that's included Brexit uncertainty, a pandemic market deep-freeze and an atmospheric, stamp duty fuelled return to form where house price growth is concerned. The market has stood firm through it all and while homebuyers have been scrambling to save on stamp duty, many existing homeowners have seen their property pretty much pay for itself in terms of upkeep costs and annual price appreciation.”
Colby concluded by saying; “Of course, we don't suggest using your house as a giant ATM, but it does show how a bricks and mortar investment is largely the best one you can make and how maintaining it is certainly money well spent.”
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your property, contact us today online or by calling us on 020 8954 0045.