The stamp duty holiday is encouraging many people to consider moving in the housing market. With the chance to save up to £15,000 on stamp duty fees, it is no surprise many households are looking to move home soon.
While the upfront cost of buying a home needs to be at the forefront of your thoughts, it is vital to consider the ongoing costs of maintaining your home. Even if you only view your house as a place for you and your loved ones to stay and grow, as opposed to an asset which provides a return, it is helpful to consider the long-term costs of home ownership.
Can you afford to maintain your home?
You should consider the cost of monthly mortgage payments, but buyers must also consider additional outlays in maintaining their home.
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.
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.
Some London areas offer a strong return
As of November 2020, Rightmove had this to day about the property prices in NW10; “Properties in NW10 had an overall average price of £671,847 over the last year. The majority of sales in NW10 during the last year were flats, selling for an average price of £424,387. Terraced properties sold for an average of £903,594, with semi-detached properties fetching £879,695. Overall, sold prices in NW10 over the last year were 15% up on the previous year and 7% up on the 2017 peak of £630,531.”
The last piece of information is most pertinent in the context of property paying for itself. Sold prices in NW10 have risen by 15% compared to last year, and prices have risen 7% compared to the last notable peak, which occurred in 2017.
Similar returns were also recorded in the NW6 postcode area, with Rightmove saying; “Overall, sold prices in NW6 over the last year were 11% up on the previous year and 8% up on the 2017 peak of £833,529.”
Therefore, if you are looking to justify the cost of home ownership, while maintaining your home to a suitable standard, many parts of North West London offer an appealing return on your time and effort.
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.”
If you are interested in our residential sales, lettings or property management services or you are looking to buy, sell, let or rent property in or around Willesden Green, call us on 020 8459 2530 and a member of our team will be happy to assist.