The average price of a house in the Borough of Harrogate has increased by more than £28,000 in the course of the past year, according to the Land Registry.

This is a 5% rise, which is lower than the national average. The Office of National Statistics reported that house prices in the UK had risen by an average of 10.2% over the year to March 2021.

Demand has also shifted more towards spacious properties, with estate agents reporting an unprecedented shortage of detached family homes.

The trend can be attributed towards housebuyers’ changing priorities over lockdown and more people starting families.

However, certain factors affect the statistics and mean that they may not paint an accurate picture of the whole year.

The stamp duty land tax holiday on properties worth up to £500,000 is set to end on June 30, which will most likely reduce housing demand in later in the year.

Estate agents said that, anecdotally, there has been a post-vaccination rush for some people who now feel more comfortable attending house viewings and going through the moving process.

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Charles Myring of Myrings Estate Agents summed up how the pandemic has changed the housing market in the borough:

“Stock levels in Harrogate were so depressed during the lockdowns, especially on certain properties (bigger family houses with good outdoor space/south-facing gardens/garages etc), which meant there wasn’t always enough quality stock available to buy and to encourage more people into the market.

“As a consequence prices started to edge up every month.”

The Harrogate borough encompasses the city of Ripon and a number of small towns including Boroughbridge and Knaresborough.

David Waddington of Linley and Simpson projected the average price rise to be even higher, at somewhere between 1% and 2% each month.

He agreed that the rise in demand for housing in the borough was also mostly related to covid:

“Harrogate became particularly desirable over lockdown as people realised they no longer had to go into the office and live in suburban areas.

“More people are looking to live in semi-rural areas, because of a subliminal need for space as a result of isolation.”

However he urged first-time buyers and those with mortgages not to give up hope, as the latest iteration of the Help to Buy scheme is still helping people with smaller deposits to take the first step on to the housing ladder.

Businesses across the Harrogate district are eagerly awaiting details of the support on offer to them in the Chancellor’s Budget, to be announced later today.

An extension to the furlough scheme, continued business rates relief and moves to support sole traders are high on the list of hopes for local business leaders.

Mike Patterson, head of employment at law firm Berwins, said support for continuing employment was vital, as well as more support being offered to self-employed people. He said:

“The furlough scheme has been a major financial lifeline for many businesses, especially those forced to close during this lockdown, and for it to continue for another few months would be a massive boost in helping to save jobs and hopefully minimise redundancies.

“We’re also expecting the Chancellor to announce a new wave of grants for the self-employed. Although this scheme could either be scrapped or scaled back from May when lockdown restrictions are expected to start being lifted and self-run businesses could reopen.

“There are then the sole traders and company directors we act for who have had no income support from the government at all. We’re aware that the Chancellor is under pressure to introduce a support scheme for those in this category and I hope to see support for those who have fallen through the gaps of previous support – up to three million people.”

Neil Addley, left, and Mike Patterson

Neil Addley, who runs automotive data specialist firm JudgeService, is expecting an increase in corporation tax, as well as sector-specific support. For JudgeService’s clients, keeping fuel duty and vehicle tax static would help, along with measures to support the infrastructure for electric vehicles, both for business and personal use.

Mr Addley, who launched new public survey platform YourPoll in autumn 2020, said rates reductions and a short-term cut in VAT would help the high street. However, he said he felt positive about the prospects for his businesses and the local economy over the coming months:

“Demand for vehicles and for reviews is likely to rise as we emerge from lockdown. Hospitality will reopen. People have been cooped up for the best part of a year and will be happy to splash the cash.”

His views were echoed by Marc Squires and Kevin Masheder of SignHub, who work with many hospitality clients. Marc said:

“It would be good to see the possibility of support extended as things are still up and down and it might be a while until businesses can return to normal later in the year.

“We work with a lot of local retail and hospitality businesses so, if the government can help get them going again with support and schemes to help them once they are back open, this will have a positive knock-on effect to other businesses that rely on working with them too, which hopefully will boost the local and national economy.”

For the property sector, the biggest question is whether the stamp duty holiday will be continued. Tim Waring, head of residential at estate agent Lister Haigh, said:

“Some form of tapering would be logical as a possible three-month extension would merely be deferring the ‘cliff edge’. This is not the answer to achieve market stability.

“The property market thrives on confidence and at this time, people want more than anything to hear good news. Economic uncertainties, including Brexit which seems to have dropped out of the headlines, will not produce a thriving housing market.”

Mr Waring said he also wants to see measures brought in locally to ensure town centres are able to reopen, even if some businesses do not survive. He called on Harrogate Borough and North Yorkshire County councils to work together with local businesses to bring people back to the high street, such as through lower parking charges.

Marc Squires, left, and Teresa Bowe

Looking across all sectors, Teresa Bowe, founder of CCF Accountancy, said the government had to balance the need to maintain the economy and employment against the huge sums spent over the last year.

“I’m not expecting income tax rates to change but maybe thresholds. The government has a tricky job of clawing back the money used to support business throughout this time but they still need to balance the books.

“I expect indirect taxes to be targeted such as capital gains tax and I wouldn’t be surprised if they reduced business disposal relief. There has been talk of aligning self employed taxes to employed and they have already got closer in recent budgets, but I suspect this gap will be narrowed further.

“I hope that they keep the employers rates and allowances in place and I also hope that they do not increase the rate of tax on dividends.”

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Meanwhile, authorities across North Yorkshire are hoping the Budget will include announcements about investment in transport infrastructure.

Invest East Coast Rail has set out a raft of benefits, which it says is worth £11 billion to the economy, from improving the East Coast Main Line. The group has called for measures to encourage people to use the route more as lockdown is eased, saying confidence in its reliability is vital after 17 major incidents in 2018 cost the economy £46 million.

North Yorkshire County Councillor Don Mackenzie, executive member for access, who represents the authority on Invest East Coast Rail, said:

“The East Coast Mainline provides an essential transport link for North Yorkshire residents and businesses and the rail line certainly merits further investment, particularly to address capacity constraints.”

Business organisations have called for events to be moved to other venues in Harrogate while the convention centre is out of use.

Events and conferences will be able to resume from October 1 under new government guidance, but Harrogate Convention Centre is expected to play host to the NHS Nightingale hospital for another eight months.

It could mean that events scheduled to take place there will move elsewhere – and, once lost, the business may not return in future years. Harrogate BID said it will do all it can to help organisers and venues keep events in the area, to help local businesses survive. Acting chair Sara Ferguson said:

“It goes without saying that this is a blow for Harrogate’s conference and exhibition trade. We now need to do all we can to ensure that whilst the Convention Centre, Royal Hall and exhibition halls are out of commission, those events that are due to take place are offered alternative accommodation within the town, be it in hotels or at the Great Yorkshire Showground.

“Harrogate BID will help in whatever way it can, which could include sponsoring shuttle buses between the town centre and the showground. We are also looking at a calendar of events that will bring people into the town centre on a regular basis.”

Harrogate BID has deep cleaned the town centre and vowed to do all it can to keep events in the local area

The managers of Yorkshire Event Centre and Pavilions of Harrogate, both on the Great Yorkshire Showground, said they are keen to host events and help local businesses. They said an independent report last year found the venues brought an economic impact of £73.7m to the area. Managing director Heather Parry said:

“Harrogate remains the ideal destination to hold events and our local economy needs events to thrive. This year has clearly been a different picture but we are here, prepared and ready to open safely in October.

“The Yorkshire Event Centre and Pavilions of Harrogate are both light and airy venues with easy access to outside space and have extensive free car parking, all of which are key to offering safe and accessible spaces.  All profits generated from our venues go towards helping to support the charitable work of the Yorkshire Agricultural Society.

“We are hoping to support our districts hospitality sector by hosting a wide range of events. In times like these we must all pull together and support each other.”

Similarly, the DoubleTree by Hilton Majestic Hotel – which should this week have hosted marquees as part of the Home & Gift Fair at HCC – said it stands ready to play its part. General manager Andy Barnsdale said:

“Of course the loss of the Convention Centre for the foreseeable future is a disappointment, and it is crucial that we don’t lose any events to other towns and cities.

“Harrogate is one of the most popular destinations for conferences, trade shows and events in the UK. Delegates and organisers love coming to Harrogate and we need to let them know the town is very much open for business.”

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Though Boris Johnson today said £3bn of funding was being arranged to enable the Nightingale hospitals across the country to remain in place until the end of March, Harrogate Borough Council said the contract with the NHS has yet to be finalised. However, Nightingale hospitals around the UK are expected to remain on stand-by in case a second wave of cases overwhelms existing hospitals, and in the meantime will offer additional testing and treatment facilities for other illnesses.

Decline in investment

While business owners who have spoken to The Stray Ferret in recent months have not questioned the value of additional NHS facilities to deal with the Covid pandemic, they have raised concerns about the ability of the town to survive without a major source of income through the year.

Events including the Knitting and Stitching Show, the Country Living Christmas Fair and the Bridal Show bring in thousands of visitors who, as well as visiting the halls, stay in local hotels or guesthouses, eat out in town, and visit local shops.

Harrogate District Chamber of Commerce said the drop in trade could see a decline in investment in the area and even the loss of some businesses with a “hard winter” looming. Chief executive Sandra Doherty said:

“Whilst Harrogate has never completely relied on the conference and exhibition trade, it has been the business which underpins the leisure trade.

“There is the choice and number of bed spaces in Harrogate solely due to the Convention Centre trade, and without it we may well see a decline in investment and perhaps the loss of some of these businesses. The number of places to eat and drink also relies on the influx of large numbers of visitors and delegates during conferences and exhibitions.

“What will happen to these is anybody’s guess as they continue to suffer from the impact of Covid restrictions.

“Harrogate is a town which enjoys popularity and status. I really hope this will help us through what could well be a hard winter for many.”

Independent traders in Harrogate have warned council chiefs to “stop playing poker” with the town centre and put the local economy first as it faces a crisis.

In a mission statement posted to local politicians and business chiefs, Independent Harrogate set out its stall and called for cheaper car parking, cleaner streets and better public transport.

It also called for a park and ride system, better rail links and for the town to be marketed to prestigious retailers in order to thrive again.

Among the issues the trade group said the town faced was a drop in footfall, a loss of independent shops, high cost of trading and lack of people coming into the town centre.

Independent Harrogate said the High Street had already seen national retailers such as H&M leave and now independents were following due to high rates and rents above the national average.

It warned that the town is in a “very delicate” state and any ill-conceived plans would “risk terminal damage” to the economy.

In order to address these problems, it said the town needed better access, an increase in appeal and regeneration in order to bring back the footfall.

The statement said: 

“HBC and NYCC officially adopted the Harrogate District Local Plan in March 2020.This plan was first drafted in 2014, in a time before Harrogate felt the full effects of the national damage to the High Street, and before COVID-19.The plan proposes far-reaching changes to Harrogate including increased pedestrianisation, the reduction of car traffic and an increase in cycle access

“Independent Harrogate is broadly in favour of many of these initiatives in the longer term. Who could not fail to be enthused by the images of al fresco dining, tree-lined streets and grand gateways? Our 200 members also worry about climate change and increasing pollution and would in due course like to see substantial changes, but they do so against the hard reality of running profitable businesses which are the lifeblood of the community where we all live and work. Everyone needs to understand that Harrogate has no guaranteed right to survive, let alone reclaim its place as a jewel in Yorkshire’s crown; any reduction of access to the town centre in the short term is suicidal.

“As Independent Harrogate has long warned, there is a crisis in Harrogate town centre. We urge both HBC and NYCC to stop playing poker with their precious asset, to listen to their business rate payers and to address the damaged fundamentals of Harrogate before proceeding with their long-term vision; and then do so in consultation with Independent Harrogate’s members and all businesses who trade there.”

Businesses struggling to stay afloat could be dealt a devastating blow if the coronavirus crisis worsens in the Harrogate district. 

After months of Brexit uncertainty, the negative impact of the UCI cycling for some businesses in September, and weeks of bad weather at the start of the year, spring could have brought much-needed relief. 

Now, fears are growing that restrictions on travel and public gatherings could further impact businesses – many of which are teetering on the edge of survival. 

Sue Kramer, who owns Crown Jewellers on Commercial Street with her husband, said:

“If it does take hold, I think it could be catastrophic for many businesses.

“We’re fortunate not to be struggling, but there are many who are. How many businesses have enough of a cushion to tide them over for an unknown length of time?” 

Her views were echoed by William Woods, of Woods Fine Linens of Harrogate, who said: “We’re very concerned. There are no cases in Harrogate yet, but it could have a devastating effect not only on our business but the whole town centre.” 

Concerns over self-employed

The government this week announced it would offer statutory sick pay from the first day of absence to anyone who was self-isolating in order to avoid the risk of spreading coronavirus. However, this would not benefit self-employed people, or those on low wages or zero-hours contracts. 

With a higher than average number of start-up businesses in the district, along with many jobs in low-paid sectors including care and hospitality, there could be resistance to self-isolating among people who would stand to lose two weeks’ wages as a result. 

The Victoria Shopping Centre in Harrogate has reported no noticeable impact on footfall so far

Kate Curtis, an independent inventory clerk who works with estate agents in the Harrogate area to assess properties, said it could also affect people working on commission, who rely on the extra money on top of their basic wage and would lose it if they were not working. 

“If you are the main bread winner, there’s a huge amount of pressure to keep earning,” she said. “As a busy self-employed person, I’ve struggled to keep up with the advice because it seems to change all the time.” 

Energy surveyor Nick Cushing, who lives in Wath near Ripon and works across North and West Yorkshire, said: “As somebody who works on my own, if I’m incapacitated, the earning stops immediately. 

“If you worked for somebody else, you would be more willing to drop tools and say, ‘it’s not worth it’. When you are self-reliant and self-employed, you will carry on doing what you are doing until the very last moment and sometimes beyond.”