House prices stay low in Peterborough compared to rest of region
House prices in Peterborough are rising slower than anywhere else in the East of England, new figures show.
House sellers’ asking prices jumped to a new record high of £308,151 on average in May, with some towns seeing “eye-watering” increases,property website Rightmove has reported.
Across England and Wales, the average price tag on a property coming to market has increased by £1,118 month-on-month.
But in Peterborough the price of housing year on year has only risen by 5.4%, to £143,660. This compares to the highest in the East of England, Luton, where prices have risen by a whopping 18.4%, to £186,900.
The price uplift comes despite a three percentage point stamp duty hike for buy-to-let investors, imposed on April 1, which it was thought would take some heat out of the market.
Nationally, the price of a home with two bedrooms or fewer has leapt by £11,298 over the last month alone to reach £194,224 on average, Rightmove said.
Homes in this “entry level” bracket are typically sought after by both first-time buyers and buy-to-let investors.
Miles Shipside, Rightmove director, said that a rush of buy-to-let investors snapping up properties before the April 1 stamp duty deadline had resulted in “a famine of suitable property and higher prices”.
He continued: “Estate agents have perhaps been focused on getting investor sales through to completion before the tax hike, and some may have been surprised by the continuing momentum and scarcity of stock to meet ongoing demand.
“The net effect is eye-watering increases in asking prices in some towns, and is further stretching first-time buyers’ affordability even though they are competing against fewer buy-to-let investors in the market.”
Here are the regional hotspots with the highest and lowest annual increases in asking prices in the first time-buyer sector, according to Rightmove.
It shows the annual asking price change and the average asking price in May 2016:
:: East Midlands: High, Northampton, 8.1%, £146,132; Low, Nottingham,
:: East of England: High, Luton, 18.4%, £186,900; Low, Peterborough,
:: Greater London, High, Croydon, 18.6%, £297,770; Low, West London,
:: North East, High, Newcastle, 3.4%, £109,495; Low, Darlington, minus
:: North West, High, Manchester, 8.2%, £124,888; Low, Preston, minus
:: South East, High, Dartford, 18.5%, £244,310; Low, Portsmouth, 7.1%,
:: South West, High, Bristol, 13.0%, £212,298; Low, Exeter, minus 0.8%,
:: Wales, High, City of Newport, 3.3%, £106,326; Low, Llandudno, minus
:: West Midlands, High, Birmingham, 7.9%, £136,429; Low, Hereford, minus
:: Yorkshire and the Humber, High, Halifax, 8.7%, £108,046; Low,
Huddersfield, minus 0.2%, £105,946