BUYERS had to fork out tens of thousands of pounds more for homes in Bromsgrove last year, according to new figures which also reveal the most expensive neighbourhoods in the area.
The impact of the coronavirus pandemic, which prevented house sales during the first lockdown, coupled with stamp duty holidays, has boosted the housing market across the UK since the world opened back up in 2020.
Office for National Statistics data shows the median house price hit £315,000 in Bromsgrove in the year to June – an increase of £24,000 compared to the previous 12 months.
House prices were also above pre-pandemic levels, with the average standing at £288,000 in the year to June 2019.
The median – the middle number in a series – is used to ensure the figures are not skewed by extreme highs or lows.
These neighbourhoods in Bromsgrove recorded the highest median house prices in the year to June:
- Barnt Green and Lickey Hills: £460,000 – up from £377,000 in 2019-20
- Dodford, Belbroughton and Romsley: £435,000 – up from £340,000
- Hagley: £420,000 – an increase from £359,000
- Alvechurch, Hopwood and Holt End: £390,000 – rising from £327,000
- Marlbrook and Lickey End: £345,000 – down from £390,000
By contrast, the area recording the lowest average house price was Bromsgrove Central and Sanders Park, where homes sold for around £219,000 in 2020-21.
The figures also show the number of homes sold in Bromsgrove rose year-on-year, from 1,327 to 1,559.
The largest proportion were in Stoke Heath, Finstall and Bentley, where 175 homes changed hands in the period.
Across England, residential property sales increased by 10 per cent to 761,067.
Martin Beck, chief economic adviser of economic forecasting group EY Item Club, said while Government measures such as the stamp duty holiday brought forward house purchases last year, the market could be set to change.
He said: “The prospect of a series of interest rate rises by the Bank of England in 2022 will translate into higher mortgage rates.
“And cost of living pressures faced by households from rising inflation and taxes mean fewer people will be able to afford to borrow the necessary amount they need to buy at higher mortgage rates.”
But Mark Harris, chief executive of mortgage broker SPF Private Clients, said mortgages are still competitively priced, meaning buyers will continue to “take the plunge”.
Nicky Stevenson, managing director at estate agent group Fine & Country, said with most agents still struggling to find enough homes to meet demand, the financial pressures were unlikely to have a “significant” impact on the market.
And property consultancy Knight Frank said high levels of requests from homeowners for a valuation of their property indicated more may be choosing to sell this year.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here