South Holland house prices increased in August

House prices increased by 1.2% in South Holland in August, new figures show.

House prices increased by 1.2% in South Holland in August, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 15.4% over the last year.

The average South Holland house price in August was £245,784, Land Registry figures show – a 1.2% increase on July.

Over the month, the picture was different to that across the East Midlands, where prices increased 2.3%, but South Holland was above the 0.9% rise for the UK as a whole.

Over the last year, the average sale price of property in South Holland rose by £33,000 – putting the area 13th among the East Midlands’s 35 local authorities with price data for annual growth.

The highest annual growth in the region was in South Derbyshire, where property prices increased on average by 19.3%, to £258,000. At the other end of the scale, properties in Chesterfield gained 9.6% in value, giving an average price of £198,000.

An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic.

But experts say expectations have changed significantly in recent weeks amid mortgage rate rises, with the likelihood of a dampening effect on house price growth.

According to figures from Moneyfacts.co.uk On Wednesday, the average two-year fixed-rate mortgage on the market has a rate of 6.52% and the average five-year fix is at 6.36%.

There are around 900 fewer mortgage products available than there were on the day of the mini-budget in September.

Chris Druce, senior research analyst at Knight Frank, said: “Current activity in the housing market is being shaped by mortgage status.

“Those that can are pushing on and securing deals ahead of further increases, while others have paused plans to digest events.

“With affordability set to be a growing barrier for many homebuyers in the coming months, we forecast house price growth will slow from here, with price falls in 2023.”

First steps on the property ladder

First-time buyers in South Holland spent an average of £209,000 on their property – £29,000 more than a year ago, and £56,000 more than in August 2017.

By comparison, former owner-occupiers paid £267,000 on average in August – 27.6% more than first-time buyers.

Property types

Owners of detached houses saw the biggest rise in property prices in South Holland in August – they increased 1.3%, to £304,275 on average. Over the last year, prices rose by 14.8%.

Among other types of property:

Semi-detached: up 1.2% monthly; up 17.4% annually; £211,610 averageTerraced: up 1.2% monthly; up 16.1% annually; £170,251 averageFlats: up 1% monthly; up 7.4% annually; £98,642 average

How do property prices in South Holland compare?

Buyers paid 3.7% less than the average price in the East Midlands (£255,000) in August for a property in South Holland. Across the East Midlands, property prices are lower than those across the UK, where the average cost £296,000.

The most expensive properties in the East Midlands were in Rutland – £393,000 on average, and 1.6 times as much as more than in South Holland. Rutland properties cost 2.2 times as much as homes in Bolsover (£178,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in August

South Holland: £245,784The East Midlands:£255,114UK: £295,903

Annual growth to August

South Holland: +15.4%The East Midlands: +16.9%UK: +13.6%

Highest and lowest annual growth in the East Midlands

South Derbyshire: +19.3%Chesterfield: +9.6%