The latest Land Registry figures show that the average house price in Basingstoke and Deane rose to £309,369 in June, a 1.9 percent increase from May. These figures mean that Basingstoke’s housing market is currently outperforming the rest of South East England (where prices rose by 1.6 percent) and the rest of the UK as a whole (where prices rose by 0.7 percent).
Over the course of the past year, the growth in Basingstoke and Deane’s property market has been strong. During this period, the average sale price of a property in the area rose by £19,000, making it one of the most popular local authorities for annual growth. By contrast, properties in Eastbourne dropped in value by 5 percent.
What’s Causing House Prices in Basingstoke to Rise?
Resurgent property prices in Basingstoke are driven by a wider trend in the property market. Throughout 2020, we’ve seen an exodus from central London, with a new commuter belt forming on the edges of the capital.
The formation of this new commuter belt is significant for the region. As a result, property developers are launching planning applications for new developments in the area. Although Basingstoke has seen house prices rise by over £6,267 between March 2020 and June 2020, other towns in the region have seen even greater rises. These include:
- St Albans – £12,822
- Sevenoaks - £10,062
- Bracknell Forest - £9,199
- Harlow - £7,754
Why are People Leaving London?
Commuter towns on the outskirts of London are becoming increasingly popular with central London homeowners who are swapping extra travel time for a lower cost of living. Although the average property in Basingstoke sells for £309,369, this is still well below the London average of £653,965, according to Zoopla’s latest selling figures.
Getting on the Housing Market in Basingstoke
If you’re a first-time buyer looking to get onto the property ladder in Basingstoke, then the good news is that the Prime Minister recently announced that he intends to turn the current “generation rent into generation buy”, as reported by Yahoo Finance UK.
He plans to do this by offering first-time buyers long-term, fixed-rate mortgages of up to 95 percent of a home’s value. This will vastly reduce the size of a deposit required to purchase a home. However, details on how the policy will work and when it may come into force are currently unavailable.
As a result, many first-time buyers are now looking to get into the fast-paced property market, before prices rise further. Plus, with the Government’s Help to Buy scheme coming to an end next year, many people wish to assess their options now. For this reason, if you’re unsure whether you can get on the property ladder in Basingstoke with your current deposit, it’s best to speak to an independent mortgage broker such as Trussle. This way, you can learn more about the mortgages you can apply for and how the home-buying process works. Armed with this information, you’ll then know your budget, your chances of being accepted for a mortgage, and the schemes that can help you.
Although Basingstoke’s fast-paced housing market is currently central to a new London commuter belt, it’s not too late for first-time buyers to enter the market. As the market shows no signs of slowing down, the sooner you can act, the better. If not, with prices rising so rapidly, you may be priced out of the market.
