House prices in Ashbourne have gone through the roof
HOUSE prices in the Derbyshire Dales have been rising at their fastest rate in almost two decades and at one of the fastest rates in the country.
Property values in the district rose quicker than anywhere else in Derbyshire, and at twice the rate of some areas, figures have shown.
Across the UK, house prices soared in the most recent year due to the impact of the pandemic and stamp duty cuts leading to higher asking prices.
In the Derbyshire Dales, the average home cost £318,633 this year and that was 24.7% higher than the average cost of £255,474 in June last year, according to the new figures from the Office for National Statistics.
It means the average home has added more than £63,000 to its value, and it represents the biggest annual jump in prices since the year to April 2005.
While the rise in prices will be welcomed by home owners and investors, it piles further pressure on first-time buyers who are struggling to set up a home in the area.
Across the county, prices have been rising at their fastest rate since May 2005.
In Derbyshire, the average home cost £206,499 in June, up 13.8% from £181,436 last year, an increase of £25,063.
Nationally, average house prices increased by 13.2% over the year to June 2021 - the highest annual growth rate the UK has seen since November 2004.
It has meant UK average house prices reached a record high of £266,000, up by £31,000 compared with this time last year.
Average house prices increased over the year in England to £284,000 (13.3%), in Wales to £195,000 (16.7%), in Scotland to £174,000 (12.0%) and in Northern Ireland to £153,000 (9.0%).
House price growth was strongest in the North West where prices increased by 18.6% in the year to June.
The lowest annual growth was in London, where prices increased by 6.3%.
The most recent year covers the full extent of stamp duty cuts put in place across Britain following the first lockdown.
The ONS suggests the change in tax may have allowed sellers to request higher prices as the buyers’ overall costs are reduced.
On July 8, 2020, the Chancellor of the Exchequer announced a suspension of the tax paid on property purchases with immediate effect in England and Northern Ireland.
Similar suspensions came into effect slightly later, on July 15 in Scotland and July 27 in Wales.
In England and Northern Ireland, properties up to the value of £500,000 would incur no tax, while the threshold for Scotland and Wales was £250,000. The tax holiday for Scotland ended on March 31, and ended on June 30 in
Wales. In England and Northern Ireland, the threshold was reduced from £500,000 to £250,000 on June 30, with the tax holiday ending on September 30.
The type of house in demand may also be affecting average prices, as the pandemic has made people reassess their home preferences.
Prices for detached homes rose 15.6% in the year to June, with a 13.5% rise for semidetached, and a 14.0% rise for terraces.
However, flats only saw prices rise by 8.4% over the year.
Bank of England analysis reported continued strong demand for housing across most of the UK in the quarter to June.
And a shortage of properties for sale helped to push up prices.
The Royal Institution of Chartered Surveyors said June was a strong month for sales, but new buyer demand eased as Stamp Duty holidays began to end.
It means the average home has added more than £63,000 to its value, the biggest annual jump since April 2005.