Appendix H Housing continued

The vast majority of properties in the Chester Urban Area are owner occupied at 62.7%, with private rented accommodation accounting for 19.3% of dwellings, as set out at Table 1.4 below. Semi-detached properties make up 29% of the area’s housing stock and flats account for 23.6%. Terrace, semi-detached, and detached houses make up 67.4% of housing stock in the Chester Urban Area, as detailed at Table 1.5 below.

In terms of residential values, properties in Chester had an overall average price of £247,612 across all property type over the last year. The majority of house types in Chester between 2019-2020 were semi-detached properties which sold for an average price of £239,318. Terraced properties sold for an average of £197,176, with detached properties averaging £362,530. There is a significant premium (c. 20%) when compared to existing second-hand stock (£285 vs. £235). Overall, sold prices in Chester between 2019-2020 were 5% up on the previous year and 3% up on the 2017 peak of £240,385.23

While the unprecedented response to the Covid-19 pandemic initially had a marked impact on housing transaction volumes, pent up demand following the first national lockdown in spring 2020 saw volumes recover quickly, whilst average house prices have typically increased owing to lowered interest rates and a temporary reduction in the rate of stamp duty, as well as other government initiatives.

As working from home has become commonplace, with many employers introducing formal flexible working policies expected to last beyond the scope of Covid-19 restrictions, many homeowners and first time buyers have re-evaluated their living requirements, with many favouring larger homes with outside space in rural and suburban locations. These factors have contributed to some of the highest price increases for a number of years. Looking ahead, the winding down of the stamp duty holiday in late 2021 and affordability concerns in some locations may provide a break for further house price growth.24