Solihull house prices increased in August

House prices increased by 1.9% in Solihull in August, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 12.3% over the last year.

The average Solihull house price in August was £348,894, Land Registry figures show – a 1.9% increase on July.

Over the month, the picture was different to that across West Midlands, where prices decreased 0.2%, and Solihull was above the 0.9% rise for the UK as a whole.

Over the last year, the average sale price of property in Solihull rose by £38,000 – putting the area 19th among West Midlands’s 30 local authorities with price data for annual growth.

The highest annual growth in the region was in Stafford, where property prices increased on average by 18.3%, to £274,000. At the other end of the scale, properties in North Warwickshire gained 7.8% in value, giving an average price of £255,000.

An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic.

But experts say expectations have changed significantly in recent weeks amid mortgage rate rises, with the likelihood of a dampening effect on house price growth.

According to figures from Moneyfacts.co.uk On Wednesday, the average two-year fixed-rate mortgage on the market has a rate of 6.52% and the average five-year fix is at 6.36%.

There are around 900 fewer mortgage products available than there were on the day of the mini-budget in September.

Chris Druce, senior research analyst at Knight Frank, said: “Current activity in the housing market is being shaped by mortgage status.

“Those that can are pushing on and securing deals ahead of further increases, while others have paused plans to digest events.

“With affordability set to be a growing barrier for many homebuyers in the coming months, we forecast house price growth will slow from here, with price falls in 2023.”

First steps on the property ladder

First-time buyers in Solihull spent an average of £275,000 on their property – £30,000 more than a year ago, and £56,000 more than in August 2017.

By comparison, former owner-occupiers paid £403,000 on average in August – 46.6% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in Solihull in August – they increased 2.1%, to £266,301 on average. Over the last year, prices rose by 12.3%.

Among other types of property:

Detached: up 1.7% monthly; up 12.8% annually; £606,964 averageSemi-detached: up 1.9% monthly; up 13.2% annually; £357,704 averageFlats: up 2.1% monthly; up 9.7% annually; £188,133 average

How do property prices in Solihull compare?

Buyers paid 36.7% more than the average price in West Midlands (£255,000) in August for a property in Solihull. Across West Midlands, property prices are high compared to those across the UK, where the average cost £296,000.

The most expensive properties in West Midlands were in Stratford-on-Avon – £403,000 on average, and 1.2 times as much as more than in Solihull. Stratford-on-Avon properties cost 2.8 times as much as homes in Stoke (£146,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in August

Solihull: £348,894West Midlands:£255,202UK: £295,903

Annual growth to August

Solihull: +12.3%West Midlands: +13.9%UK: +13.6%

Highest and lowest annual growth in West Midlands

Stafford: +18.3%North Warwickshire: +7.8%