Local Market Update: Billinge and Orrell
The property market in the UK has been showing an interesting mix of stability, mild corrections, and shifting dynamics as we move deeper into autumn. With local markets like Billinge and Orrell seeing their own distinct trends, and new national policies and economic factors affecting buyers’ choices.
Local Market Update: Billinge and Orrell
Billinge
- New Listings: 21 new homes hit the market, with 9 sold in the first 4 weeks of marketing.
- Price Reductions: 11 properties experienced price cuts, but only 1 sold post-reduction.
- Price Trends: While prices have seen a 6% decline compared to last year, they remain 8% above the peak in 2021. Month-over-month, prices have risen by 1%, hinting at a tentative upward momentum.
Orrell
- New Listings: 26 new homes came to market, with 7 sold in the first 4 weeks of marketing.
- Price Reductions: 13 listings saw price reductions, resulting in 2 sales post-adjustment.
- Price Trends: In Orrell, prices are down 3% year-on-year but still stand 2% higher than the 2021 peak. Similar to Billinge, Orrell has seen a 1% year-over-year price increase compared to the previous month, signaling a modest but promising shift toward stability.
National Property Market Trends
Nationally, property sales and buyer interest remain strong. However, as more homes come to market, buyers are enjoying increased options, while sellers face heightened competition.
- Sales Surge: The number of sales being agreed is up by an impressive 29% compared to last year, representing a healthy rebound from the slower market in 2023.
- Buyer Demand: Despite the economic backdrop, buyer interest is high, with 17% more people contacting agents about homes for sale compared to this time last year. This heightened interest persists, even as some uncertainty around the Autumn Budget might make buyers cautious.
- Inventory Increase: There’s a 12% increase in available homes for sale year-on-year, which marks the highest supply per estate agent since 2014. While this creates more choice for buyers, it also intensifies competition for affordability-stretched buyers who may be contending with pre-Budget jitters.
Stamp Duty Tax Update
One of the most significant policy shifts impacting the housing market involves the rise in Stamp Duty for those purchasing additional properties, the extra Stamp Duty for second-home buyers will increase from 3% to 5%.
- Policy Intent: This measure aims to level the playing field, giving first-time buyers and primary home movers an edge over second-home buyers and landlords. The Treasury estimates that this move could result in 130,000 additional transactions over the next five years.
- Potential Challenges: However, the increase may lead to more failed transactions and potentially deter some buyers who feel squeezed by higher Stamp Duty and rising mortgage rates, as well as fewer private rental properties for tenants in an already difficult housing market.
Final Thoughts
The Billinge and Orrell housing markets are showing small but encouraging signs of price resilience, and the national market is seeing a strong uptick in demand, despite an environment of increased supply and buyer caution. The Stamp Duty increase is a pivotal policy change with wide-ranging effects, potentially shifting buying patterns in favor of first-time buyers.
With mortgage rates holding steady, affordability remains a key challenge, but one that may gradually improve as inflation continues to ease. Whether you’re buying, selling, or simply watching the market, these insights offer a snapshot of where things stand—and where they might be heading in the months to come.
