As England and Northern Ireland prepare for changes to stamp duty thresholds beginning in April, buyers are navigating a shifting housing market landscape. Anticipated cuts to the Bank of England's base rate loom on the horizon, while recent turmoil in bond markets has exerted upward pressure on mortgage rates. In this evolving environment, Sunbury-on-Thames has emerged as a standout property hotspot, recording the most significant rise in asking prices across Great Britain last year.
Sunbury-on-Thames, popular for its commuter-friendly location with less than an hour's travel to London Waterloo station, saw its average asking price leap by 12.5% according to Rightmove. The town's proximity to the recently expanded Shepperton Studios, now the world's second-largest film studio, further enhances its appeal. In 2023, the average asking price in Sunbury-on-Thames rose from £527,005 to £592,976, making it a point of interest for property enthusiasts and investors alike.
Across Great Britain, the property market witnessed a modest 1.4% increase in average asking prices over the year. However, the capital city experienced a different trend, with London seeing a 0.8% decrease in average asking prices. Meanwhile, other cities such as Bristol and Swinton reported average asking prices of £391,042 and £264,081 respectively. Nationwide building society highlighted a 4.7% increase in UK prices for the 12 months ending December, while the Office for National Statistics (ONS) reported an annual growth rate of 3.3% in November.
“This uncertainty will be compounded by the recent turmoil in the bond markets putting upward pressure on mortgage rates.” – Karen Noye, mortgage expert at wealth management company Quilter
The market's current dynamics pose challenges, particularly for first-time buyers already grappling with rising living costs and tighter lending conditions. Rightmove forecasts a 4% rise in asking prices this year, with sales expected to reach 1.15 million.
“This dynamic is likely tempering demand, particularly among first-time buyers already stretched by rising living costs and tighter lending criteria.” – Karen Noye, mortgage expert at wealth management company Quilter
Despite these challenges, high-quality homes in popular areas continue to attract buyer interest. This sustained demand reflects a certain resilience in parts of the housing market despite higher mortgage rates.
“Agents tell us that good quality homes in popular areas have continued to attract buyer interest, even in the slower periods of the market since mortgage rates went up.” – Steve Pimblett, Rightmove’s chief data officer