House prices in Northamptonshire still rising, but for how long as cost of living crisis grows?

Analysts warn of looming property slowdown

By Katie Williams, Data Reporter
Friday, 22nd July 2022, 1:13 pm

House prices are continuing to climb in Northamptonshire, according to latest figures, but experts predict a slowdown as inflation puts pressure on household finances and interest rates.

Property values in North Northamptonshire increased by two percent in May — more than the East Midlands average — while homes in West Northamptonshire matched the 1.2 percent rise across the UK as a whole.

The rises contribute to the longer-term trend, which has seen property prices in the area shoot up by 15.7 percent over the last year in North Northamptonshire and 13.7 percent in the West.

Property prices continued to rise across Northamptonshire in May — but experts warn a slowdown may be coming

The average North Northamptonshire house price in May was £265,066, Land Registry figures show – up £36,000 on May 2021 and putting the area sixth among the East Midlands’ 35 local authorities for annual growth.

In West Northamptonshire, meanwhile, the average house price in May was £292,348 having gone up by £35,000 year-on-year, the area’s 15th highest rise.

Analysts say an imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said: “The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

“However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August.”

First steps on the property ladder

First-time buyers in West Northamptonshire spent an average of £243,000 on their property – £29,000 more than a year ago, and £50,000 more than in May 2017.

By comparison, former owner-occupiers paid £329,000 on average in May, 35.3 percent more than first-time buyers.

In the North, first-timers spent an average £223,000 – £30,000 more than a year ago, and £61,000 more than in May 2017.

Movers paid £296,000 on average in May, 32.7 percent more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in West Northamptonshire in May. They increased 1.6 percent to £224,045 on average. Over the last year, prices rose by 13.1 percent.

Terraced houses in North Northamptonshire increased 2.4 percent in May to £203,689 on average — up 14.8 percent in a year.

Among other types of property in West Northamptonshire:

Detached: up 0.9 percent monthly; up 15.2 percent annually; £478,469 average

Semi-detached: up 1.2 percent monthly; up 14.2 percent annually; £278,302 average

Flats: up one percent monthly; up 8.5 percent annually; £146,327 average

In North Northamptonshire:

Detached: up 1.7 percent monthly; up 16.8 percent annually; £421,667 average

Semi-detached: up two percent monthly; up 16.1 percent annually; £251,962 average

Flats: up 1.8 percent monthly; up 11.3 percent annually; £126,123 average

How do property prices in West Northamptonshire compare?

Buyers paid 19.8 percent more than the average price in the East Midlands (£244,000) in May for a property in West Northamptonshire. Across the East Midlands, property prices are higher than those across the UK, where the average cost £283,000.

The most expensive properties in the East Midlands were in Harborough – £386,000 on average, and 1.3 times as much as more than in West Northamptonshire. Harborough properties cost 2.3 times as much as homes in Bolsover (£168,000 average), at the other end of the scale.

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

How do property prices in North Northamptonshire compare?

Buyers paid 8.6 percent more than the average price in the East Midlands (£244,000) in May for a property in North Northamptonshire. Across the East Midlands, property prices are higher than those across the UK, where the average cost £283,000.

The most expensive properties in the East Midlands were in Harborough – £386,000 on average, and 1.5 times as much as more than in North Northamptonshire. Harborough properties cost 2.3 times as much as homes in Bolsover (£168,000 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 May

West Northamptonshire: £292,348

North Northamptonshire: £265,066

The East Midlands: £244,060

UK: £283,496

Annual growth to May

West Northamptonshire: +13.7 percent

North Northamptonshire: +15.7 percent

The East Midlands: +15.2 percent

UK: +12.8 percent