New data from the Office for National Statistics (ONS) has revealed the housing affordability levels in local authorities all over England and Wales.
The data revealed what the median house prices were every year since 2000, and in Sutton, the house prices have skyrocketed over the years.
In 2000, a house in Sutton cost an average of £84,950, and, in 2024, the average price was £320,750.
The graph below shows how prices have increased since the start of the millennium.
After 2000, the average house price rose steadily for the next eight years, reaching £185,000 in 2008.
Following the 2008 financial crisis, the average house price dropped to £170,000 in 2009.
This may have been due to the recession, causing job losses, stricter mortgage lending, and reduced buyer confidence.
With fewer people able to secure mortgages and some homeowners forced to sell, demand fell while supply increased, driving prices down.
In 2012, the average price returned to what it stood at in 2008.
In 2013, the price reached £192,000 and skyrocketed to £207,000 in 2014.
By 2018, the average price reached £300,000.
This dropped in 2019 to £291,000.
This could be due to Brexit uncertainty, which led to cautious buyers and a slowdown in the housing market.
It may also reflect a cooling London property market, with affordability tests and stamp duty changes impacting demand.
This may have been due to a combination of factors, including ongoing economic uncertainty, the impact of Brexit, and a slowdown in the housing market.
In 2020, the average house price in Sutton returned to the 2018 price of £300,000.
This recovery was partly thanks to the stamp duty holiday, which the government introduced to help the housing market during the COVID-19 pandemic.
The stamp duty is a tax you pay when buying a home, and during the holiday, the government temporarily paused the tax on homes up to £500,000.
This encouraged more people to buy homes because they could save thousands of pounds on their purchase.
As a result, demand went up, helping house prices bounce back.
The stamp duty holiday, which lasted from July 2020 to September 2021, temporarily waived or reduced the tax on homes up to £500,000.
This encouraged more people to buy, driving up demand and helping house prices rise.
As a result, the average house price in Sutton jumped to £322,000 in 2021, following the boost from the holiday and low interest rates.
In 2022, the average house price in Sutton dropped to £305,000, influenced by a combination of factors.
The ongoing Ukraine war caused global economic instability, driving up energy prices and inflation, while the cost-of-living crisis squeezed household budgets.
With rising bills and higher interest rates making borrowing more expensive, many buyers pulled back, leading to a slowdown in the housing market.
In 2023 and 2024, the average house price in Sutton gradually recovered, reaching £318,250 and £320,750, respectively.
With less buyer confidence and fewer people moving up the property ladder, the demand for housing decreased, contributing to the dip in prices.
Nathan Emerson, CEO of Propertymark, a leading professional body for property agents, said on Wednesday (March 26): “Today’s figures suggest that housing continues to play a vital role in the UK economy and that an uplift in housing activity can help generate further economic growth.
“With the Planning and Infrastructure Bill heading through Parliament, this should pave the way for 1.5 million new homes across England and Wales before the next general election and should contribute positively towards stabilising supply and demand levels and help keep pace with predicted population growth across the forthcoming years.
“Although the last Bank of England Money and Credit Report suggested that net mortgage approvals for house purchases decreased slightly at the start of this year, there is currently a strong appetite to borrow in order to purchase a potential new home.
“The same report suggested overall net borrowing rose by £0.9 billion.
“Today’s news should deliver a sense of confidence to those considering taking either their first or next step on the housing ladder.”
Sutton’s housing market offers a wide range of prices, with homes available from as low as £130,000 in more affordable areas to nearly £2 million in the most sought-after locations.
HM Land Registry and Property Solvers data reveal that the average house price in Sutton stands at £462,804.
Over the past five years, property values have increased by £56,759, marking a rise of 13.67 per cent.
In the last year alone, the average price has climbed by 2.47 per cent, equating to an increase of £11,370.
However, the number of residential property sales has dropped significantly, with 593 sales in the past 12 months—down by 185 transactions, or a 31.2 per cent decline compared to the previous year.
The majority of these sales were concentrated in the £240,000 to £346,000 range, with 173 properties sold.
Additionally, 114 homes were sold in the £346,000 to £452,000 price bracket.
