Property prices booming across Chesterfield - but warnings over longer-term outlook

Property prices are booming across Chesterfield according to the latest Government figures.

Thursday, 1st April 2021, 11:14 am

However, experts have warned the longer-term outlook is uncertain with the stamp duty holiday, which has boosted demand, set to end this summer.

According to the Land Registry’s latest house price index, the average property price in Chesterfield in January was £173,520, up 8.1 per cent on January 2020’s average of £160,554 – against an inflation rate of 0.9 per cent.

Across England, prices rose 7.5 per cent, to an average of £266,532, while Derbyshire’s average price rose 10.2 per cent, to £199,112.

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In Derbyshire Dales, the rise was 19.5 per cent, to £308,849, while in Amber Valley, the average price is now £199,120, up 10.7 per cent. Average prices in Bolsover rose 16.9 per cent, to £154,525, while in North East Derbyshire the rise was 9.8 per cent, to £209,973.

The latest Nationwide House Price Index, to March 2021, however, shows a slowing in annual growth, slowing to 5.7 per cent in March, from 6.9 per cent in February, as prices fell 0.2 per cent month-on-month.

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Stamp duty holiday extended

Hardwick Street for sale sign, Chesterfield.

Chancellor Rishi Sunak introduced a stamp duty holiday last summer to boost the property market during the coronavirus pandemic, before extending it in his March 2021 Budget, meaning no tax is payable on the purchase of homes priced £500,000 or less, until the end of June.

From July, homes priced £250,000 or less qualify for the tax break, before it ends on September 30, when the rate will return to its pre-holiday levels, with duty payable on homes priced over £125,000.

Robert Gardner, Nationwide chief economist, said: “Recent signs of economic resilience and the stimulus measures in the Budget, including the stamp duty holiday, suggest housing-market activity is likely to remain buoyant over the next six months.

“The longer-term outlook remains uncertain. It may be the recovery continues to gather momentum and shifts in housing demand from the pandemic continue to lift the market.

“However, if the labour market weakens towards the end of the year, as most analysts expect, activity is likely to slow.

Colin Wallace, of mortgage broker Wallace Home Finance, said: “We’re optimistic about the market this year. While the threat of rising unemployment is a concern, this is mitigated by the public’s desire to get back to how things were pre-pandemic.”

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