By New figures reveal how house prices have been falling across most of Kent over the past year and which areas have seen the biggest drops. But why is the county’s previously red-hot property market now cooling? KentOnLine have just published a piece on this.
House prices across much of Kent and Medway have dipped. Only three districts across all of Kent and Medway have seen an increase in house prices over the last 12 months, according to new figures. The value of flats across all districts has dropped.
According to a house price index developed by online estate agent Purplebricks, the average house price in Kent is down 2% to £338,474. In Medway, it’s dipped 1.2% over the last year to £285,540. The biggest decline in value is in apartments which have slumped 3.9% (to £198,683) in Kent and by 2.7% in Medway (to £178,537).
Purplebricks says it analyses data from more than 500 parts of the UK to chart the rises and falls in the housing market nationwide.
How each district has fared. According to its latest set of figures, only Ashford saw a significant increase in values – with the average home rising by 2.7% since July 2023. It saw an increase in the average detached (up 3.2%), semi (up 3.6%) and terrace home (up 2.6%). Flats, however, saw a 0.3% dip.
Swale also saw prices creep up by 0.8% overall, bringing the average property to £291,906. The only other district increasing was Tunbridge Wells – up 0.3% with an average price of £446,265. The borough was the second most expensive place in the county to live – second only to Sevenoaks (with an average property price of £491,085) which was down 2.4%. Both areas, however, saw flat prices decline.
The areas seeing the biggest decline were Thanet where the average price fell by 6.2% to £279,601; and Dover which was down 5.2% to £281,497. Canterbury also saw a chunk shaved off the average home – dropping 4.5% to £326,213.
Causes of the Decline
Spencer Fortag, who runs Dockside Property Services in Medway, says several issues are likely at play as to why there’s been a drop.
“I don’t think there’s any doubt that there is uncertainty in the market,” he explains. “Interest rates have remained high, we’ve literally just had a change of government from blue to red and that in itself has caused uncertainty within the landlord market. There are concerns because of the white paper that Labour is talking about bringing forward and the possible negative perceived impact that could have on landlords’ abilities, for example, to get their own property back by abolishing the section 21 [‘no fault eviction’] notice.”
“So are landlords buying right now? Not, I think, in the same volume that they have been because they’re taking a bit of a breath just to see what’s happening in the market.
Spencer Fortag says the fluctuations are minor and says stability is returning to the market “It’s a fairly modest fluctuation and I’ve said in the past, even a 10% decrease in the market isn’t necessarily a bad thing. If the value of your home goes down 10% then so does the value of the property you’re buying.”
Key to the dip continues to be the cost of borrowing. While inflation is back down to target levels, there are still concerns the cost of some goods are still accelerating in excess of the 2% aimed for by the Bank of England. That has, so far at least, stopped it from cutting interest rates. They sky-rocketed to counter soaring inflation and, at 5.25%, are at a 16-year high. Only when the Bank cuts the rate will mortgage lenders likely follow suit – a move which is likely to encourage people to take the plunge into the housing market.
Optimism for the Future
Spencer Fortag is still optimistic the recent period of stability with house prices is set to stay, adding: “There remains strong demand for properties within the Medway and wider Kent region and property remains a priority for most people and a fairly safe bet. I think the hope is that once the new government get their feet well and truly under the table, we’ll see a decrease in interest rates. Hopefully, mortgage lenders will follow suit with a decrease of their rates and hopefully that period of stability will turn into a period of confidence.”
The recent dip should be seen in context, however, with the trend during the 21st century, during which Kent’s property prices have seen some of the sharpest increases. One report, published in 2022, revealed house prices had increased by 23.5% on average over the previous five years. Thanet had seen one of the nation’s biggest price hikes – up a staggering 46% over the same period.
Source KentOnLine.
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