Credit: The Bolton News
Bolton House Prices Surge Over the Past Five Years
Cardwells Estate Agents reveal that the average house price in Bolton for first-time buyers has increased by over a third in the past five years, according to recent data.
The property market has seen a significant shift, with the average price for first-time buyers in Bolton rising to £159,400 in April, a 42% increase from £112,100 five years ago. This rise is reflective of overall house prices in Bolton, which have also surged by 42% over the same period, reaching £190,300 in April 2024. This escalation in house prices comes as Rightmove reports a substantial increase in typical mortgage payments for first-time buyers, now up by £400 a month.
Andrew Cardwell, Managing Director at Cardwell’s Estate Agents, highlights the impact of high-interest rates on the property market. “First-time buyers, along with every buyer who needs to borrow money to purchase a property or has needed to remortgage, have suffered due to the higher levels of interest rates over the last couple of years,” he explains. These elevated rates have significantly influenced the Bolton (and Bury) property markets. Cardwell notes that the drastic rise in interest rates has been a primary factor behind the increased mortgage payments. However, he remains optimistic about a potential shift. “With the recent news that inflation has reached the two per cent target, it is widely thought that interest rates will come down as we progress through 2024. The Bank of England is set to discuss this in August 2024, and any interest rate cuts will likely reduce the mortgage costs for buyers, especially first-time buyers,” Cardwell adds.
Significant Challenges for First-Time Buyers Amid Rising Mortgage Rates
Cardwell points out that recent moves by major lenders like Barclays, which have already reduced their mortgage headline rates, could signal a trend that other lenders might follow. He references a study by On The Market, indicating that 85% of active buyers in the UK are confident about purchasing a property within the next three months, despite an upcoming general election. Cardwell believes that the Bolton property market is currently well-positioned and could see further growth if borrowing costs decrease. “If you are a first-time buyer considering a property purchase in 2024, this may be an opportune time to explore available options,” he advises.
Political parties are also addressing housing affordability in their manifestos. The Conservatives propose making the temporary stamp duty threshold of £425,000 permanent for first-time buyers and introducing a new help-to-buy scheme for those with small deposits. Meanwhile, Labour plans to extend the current mortgage guarantee scheme, which supports banks in offering 95% home loans. These measures aim to provide additional support for those entering the housing market amidst the current economic conditions.
