Hertfordshire Property Market Update: Price Growth Slows as Stamp Duty Deadline Nears
Rightmove's latest national report signals a subtle shift in the property market, and these trends are certainly being felt here in Hertfordshire.
While the average price of property coming to market has risen by a modest 0.5% (+£1,805) this month, reaching £367,994, this is a more subdued increase compared to the start of the year. This suggests that new sellers are tempering their price expectations, influenced by the approaching stamp duty deadline and increased competition within the market.
What does this mean for Hertfordshire residents?
The good news is that the number of available homes for sale is at a 10-year high. This increase in supply gives buyers more choice and moderates the upward pressure on prices, creating a more balanced market.
However, the looming stamp duty deadline is causing some anxiety, particularly for first-time buyers in the £500,001 to £625,000 price range. Missing the deadline could mean an extra £11,250 in costs, leading to a potential conveyancing bottleneck as buyers rush to complete their transactions.
Despite these challenges, underlying activity remains robust. The number of new sellers coming to market is up 13% compared to last year, buyer demand is 8% higher, and sales agreed numbers are up by 15%. This indicates that the Hertfordshire property market is still active, supported by slower price rises and strong buyer interest. January also saw a record number of applications for a Mortgage in Principle on Rightmove, suggesting continued confidence in the market.
Welwyn Garden City and Hitchin: A Tale of Two Towns
Let's take a closer look at the specific market dynamics in two of Hertfordshire's popular towns: Welwyn Garden City and Hitchin.
Welwyn Garden City:
Active Market: With 367 properties currently on the market, Welwyn Garden City offers a wide range of options for buyers.
Healthy Supply: In February, 93 new properties were brought to the market, contributing to the overall strong inventory.
Solid Sales: 87 properties were sold in February, indicating consistent demand.
Time on Market: The average time on market is 180 days, slightly above the county average, suggesting a need for competitive pricing.
Hitchin:
Steady Supply: Hitchin saw 163 properties brought to the market in February.
Strong Demand: An impressive 147 sales were agreed upon in the same period, indicating strong buyer interest and a relatively quick turnaround for properties.
Price Reductions: A significant 81 price reductions were observed, suggesting that sellers are adjusting their expectations to meet market demand.
Time on Market: The average time on market is 172 days, indicating that properties are generally selling in a timely manner.
Key Takeaways for Hitchin and Welwyn Garden City
Hitchin: The number of price reductions suggests a slight cooling in certain areas, Sellers may need to ensure pricing is sharp to attract buyers quickly.
Welwyn Garden City: With a wide selection of properties, Welwyn Garden City presents buyers with a variety of options. Sellers should be aware of the competition and price accordingly.
Looking Ahead
While the stamp duty deadline adds a layer of complexity, the underlying strength of the Hertfordshire property market suggests that activity will remain positive beyond March. Slowing price rises and increased buyer demand are creating a more sustainable market. However, it's crucial to stay informed about economic news and mortgage rate trends, as these factors can influence market sentiment.
Whether you're a buyer or a seller, now is the time to work closely with your local estate agent to navigate the evolving market conditions and achieve your property goals.
