The stamp duty holiday is encouraging people to move home, and a lot of buyers want to conclude deals quickly. It is important to consider the cost of moving home, but it is also vital to consider the cost of maintaining property.
At Holmes Estate Agents, we have seen some homeowners come out on top when it comes to balancing the costs of maintaining a property with rising house prices.
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.
The company also looked at the annual house price growth in an area, and came up with findings based on properties paying for themselves.
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.
43% of areas at local authority level have seen a greater rise in property prices than in the cost of maintaining property.
Some London areas offer a strong return
It probably comes as no surprise to learn the leading areas for this outcome are in London, with Hammersmith and Fulham the number one option. The annual cost of maintaining property in this borough stands at £10,481. This is a considerable sum of money.
However, with house prices having risen by £44,525 in the past year; homeowners can enjoy a profit of £34,044 after ensuring their property is maintained to a high standard.
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.”
Colby concluded by saying; “Of course, we don't suggest using your house as a giant ATM, but it does show how a bricks and mortar investment is largely the best one you can make and how maintaining it is certainly money well spent.”
We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.