Does Your Home Pay For Itself?
5th November 2020 posted in Sellers Buyers Landlords
We know the stamp duty holiday has influenced many people to buy property, but there is a lot to consider when buying a house.
It is important to consider the cost of buying property, but you should also consider the importance of maintaining property. This has been the focus of a recent study and some London areas offer a positive return for homeowners.
If you are looking for guidance in the Hornchurch housing market, please get in touch.
Do you know the costs of maintaining property?
GetAgent.co.uk looked at each local authority in England and the total current upkeep costs of a property on an annual basis, based on: -
The factors considered by GetAgent in their analysis include:
· The annual council tax bill in each area.
· The annual cost of gas and electricity in each area.
· The average cost of a water bill.
· The average cost of combined buildings and contents insurance.
· The average annual maintenance cost of a home.
The company also looked at the annual house price growth in an area, and came up with findings based on properties paying for themselves.
Budget for the cost of maintaining your home
Across England, the average cost of maintaining property for a year is £6,406. This is comprised of:
· £1,818 in council tax payments
· £1,139 in energy costs
· £397 on water payments
· £146 in insurance fees
· £2,547 on maintenance costs
However, the average price of property in England has risen by £6,220 in the past 12 months. The average homeowner is therefore £174 ahead when comparing property price rises with property outlay in the past 12 months.
43% of areas at local authority level have seen a greater rise in property prices than in the cost of maintaining property.
How are Hornchurch house prices performing?
Rightmove analysis, at the end of October 2020, says the following regarding Hornchurch house prices; “Properties in Hornchurch had an overall average price of £440,575 over the last year. The majority of sales in Hornchurch during the last year were semi-detached properties, selling for an average price of £436,322. Terraced properties sold for an average of £388,967, with flats fetching £250,241.”
It also talks about a change in property prices, saying; “Overall, sold prices in Hornchurch over the last year were 5% up on the previous year and 1% up on the 2017 peak of £434,437.”
With Hornchurch house prices rising, there is an opportunity for homeowners to see their valuer rise greater than the cost of maintaining property.
We are pleased to say we have helped many local homeowners achieve a great price when selling their home. If you are looking for guidance on selling your Hornchurch house, look no further than Hunters Hornchurch.
Colby Short, Founder and CEO of GetAgent.co.uk, commented: “It's been a topsy turvy last 12 months that's included Brexit uncertainty, a pandemic market deep-freeze and an atmospheric, stamp duty fuelled return to form where house price growth is concerned. The market has stood firm through it all and while homebuyers have been scrambling to save on stamp duty, many existing homeowners have seen their property pretty much pay for itself in terms of upkeep costs and annual price appreciation.”
Colby concluded by saying; “Of course, we don't suggest using your house as a giant ATM, but it does show how a bricks and mortar investment is largely the best one you can make and how maintaining it is certainly money well spent.”
If you are keen to stay in touch with the local housing market, we can help. At Hunters Hornchurch, we are on hand to ensure you receive all the guidance you need in the local property market, and we are here to assist you.