3 of 4 Districts in Cheshire Break Record Property Prices
- Cheshire house prices are 4.2% higher than one year ago.
- Latest Land Registry data shows sales volume was half as active as last year.
- Property prices in Cheshire are rising, particularly for new-builds.
- Cheshire East remains the most expensive place to buy a home in Cheshire.
- Homes in Halton have the greatest 10-year property price growth, with every district in Cheshire outperforming the national average.
- Halton also has the most affordable average price for each property type.
- Across the North West, house prices are expected to increase 28.8% through 2024-2028.
Property sales volume for Cheshire reached a record low for June
The Cheshire property market has never seen such a slow June since records began. The only times that sales volume has fallen so low in a single month was during the lockdown in April 2020, in the winter of 2008-09, and in January 2010, following the economic crash. Across the country, fewer than half the property sales were completed compared to the same month last year.
Every district in Cheshire was slightly quieter than the national average, but the biggest impact was felt in Halton, with only 44% of last year's property sales. Warrington was just behind the national average, at 48%.
Are house prices falling in Cheshire?
Average house prices across Cheshire have risen since last year. Homes in Halton are 6.7% higher year-on-year, the average property is 5.6% more expensive in Cheshire East, and 3.9% in Cheshire West and Chester, all above the national average of 2.4% for England & Wales. The only district which fell behind the national average was Warrington, with 0.7% growth.
Cheshire East fell below the national average over the past ten years but has recently closed the gap, with average prices closely following England & Wales.
How does the Bank of England affect the Cheshire Housing Market?
The recent base rate cut to 4.75% means that borrowing is returning to an affordable level; if inflation remains low, the base rate may fall again in December. This means more people can afford to buy, with a little more to spend. When there is more activity in the housing market, it tends to push prices up slowly, especially when demand outstrips supply, as we are facing with the current housing shortage.
The graphs above show that the base rate stabilising was all it took for prices to begin climbing again.
Capital Economics forecast that the base rate will fall to 3.5% by early 2026.
Will there be a UK recession in 2024?
"The Quarterly Economic Forecast (QEF), expects the UK economy to grow by 1.1% for 2024, with the projection for 2025 remaining at 1.0%. The economy is expected to grow by 1.1% in 2026, a minor upward revision." - Source: British Chambers of Commerce (BCC)
This, however, is well below the pre-pandemic average. NEISR estimate that Britain's poorest households will not recover fully until 2027.
Are you thinking of buying a property in Cheshire?
Halton is the cheapest place to buy a house in Cheshire
Halton is, on average, £100,127 cheaper than Cheshire East. Flats, maisonettes, and detached homes in Cheshire West and Chester are the second most affordable, followed by Warrington. However, this swaps around for semi-detached and terraced homes, which are more affordable in Warrington than in Cheshire West and Chester.
Record-breaking summer for house prices in Cheshire
Despite, or perhaps thanks to, its more affordable property prices, Halton is the only borough in Cheshire which is at its record-high property prices.
Cheshire East, Cheshire West, and Chester hit their record highs in the previous month but fell slightly in the month to August, according to the latest available Land Registry data.
Warrington is the only district in Cheshire yet to reach its November '22 property price peak of £259,242.
Halton has proven the best long-term investment
Looking at house price growth over the past ten years, Halton takes the lead, with growth of 65%; followed by Warrington (60%), Cheshire East (57%), and Cheshire West & Chester (55%). Every district beats the average for England & Wales at 53%.
As well as the most affordable option, Halton may be your best choice in the region for long-term return on investment.
New homes in Cheshire are now 63% more expensive than existing properties
New-builds have always come at a premium, but new house prices in Cheshire soared above existing property, widening the gap to a massive £156,317.
If you exclude the new builds in the charts below, you can see existing property is much steadier. This could be good news for hopeful first-time buyers who have (or almost have) their deposit and are waiting for the cost of borrowing to come down.
Not only are they more expensive on average, but they can lose up to around 7% of their value (source: Toomey Legal, Sloth Move) when someone moves in much like a new car depreciating as soon as you drive it out of the dealership; it is no longer 'brand new'.
"This disparity in price will fuel nearby house prices up as estate agents use these potentially over-priced local comparables when setting sale prices for existing properties in the local area." - Andrew Boast, CEO.
This could mean new build developments in your immediate location will inflate the value of your home. Great news if you're already a homeowner; bad news if you're struggling to afford a local home.
What are the best places to live in Chester?
Chester, on the banks of the River Dee, balances historical charm with vibrant contemporary culture. (Cheshire West and Chester)
Wilmslow blends urban elegance with serene green spaces and has a strong sense of community. (Cheshire East)
Macclesfield, gateway to the Peak District, River Bollin and the Cheshire Plain, is known for its great schools and bustling local markets. (Cheshire East)
Northwich offers modern amenities and contemporary attractions, while retaining its enduring authentic spirit. (Cheshire West and Chester)
Should I buy a house in Cheshire?
Cheshire is an excellent location to buy a home:
- Affordable homes
- Picturesque countryside
- City amenities
- Peak District National Park
- Vibrant communities
- Old world charm
- Rich heritage
House prices are rising, and the cost of borrowing continues to fall. If you can afford to buy in Cheshire before prices increase further, you'll likely be able to switch to a more affordable mortgage rate in a couple of years, by which point your investment will hopefully have appreciated in value.
Across the North West, house prices are expected to increase 28.8% over 2024-2028.
If you are renting and can afford to buy at the current rate of interest, this may be a much more desirable option than saving for a bigger deposit, as rents are still rising, whereas mortgage rates are likely to fall.
However, if you are stretching your budget to buy in Cheshire, consider saving for a bit longer. We may not be out of the woods yet, and if the base rate (and mortgage rates) rise again, you may be unable to keep up with your monthly repayments. Worse yet, if prices do fall, you could end up in negative equity. Buying a home with a mortgage always comes with risks. Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are ready to buy a house in Cheshire or the surrounding area, we can handle your purchase with a dedicated SAM Conveyancing Consultant to manage your transaction alongside one of our hand-selected panel solicitors.
"I expect more renters to buy if they can afford it despite numerous cities in the UK experiencing almost double-digit percentage rent increases. While the drop in interest rates might make properties more affordable, higher rents could keep forcing prospective first-time buyers out."
- Andrew Boast FMAAT MIC
CEO and Author | SAM Conveyancing
Sources: Latest data from - Gov.UK, Bank of England, UK House Price Index, Savills.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
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