House prices fall across the UK

Property prices fell in nine of the 13 regions in the UK in the second quarter of the year, according to research from Nationwide.

The research found that overall house prices fell by 1.1% year on year, bringing the cost of an average home in the UK to £164,955.

Northern Ireland saw the largest dip in property prices compared to the same period last year, down by 10.6% to £110,422.

This was closely followed by Wales, down 5.3% to £131,840, and the North West, which was down 4.1% to £134,905.

Further figures from the research revealed that Wales’s property market has seen a decline for three consecutive quarters, dropping by 1.1% in a quarter-on-quarter comparison.

In contrast, price growth was recorded in the Outer Metropolitan region, East Anglia and London.

“London saw the strongest quarterly growth rate, with prices up 1.0% quarter-on-quarter,” said Robert Gardner, Nationwide’s Chief Economist.

“Whilst the annual rate of growth moderated a little from 2.3% to 1.2%, average prices in the capital have now virtually recovered to their 2007 peak.”

Greenwich had the highest increase in property prices in London, compared to the same period last year, rising by 14% to £292,376. This was followed by 11% growth in both Westminster and Ealing.

The research also found that there continues to be a wide gulf between property prices in the south and north of England, with prices in the south being roughly £96,000 higher.

Not only that, but the south has outperformed the north in property prices for the thirtieth consecutive quarter, adding to the north-south divide.

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Posted by: WarrenWilson Categories: Buying, Finance, Selling Tags: 9 Comments

9 Responses to House prices fall across the UK

  1. Very interesting. As house prices in London are increasing so are burglaries and theft. Protect your home with CCTV cameara system.

  2. avatar patrick brady says:

    do you have or know of any derelect properties or sites that could be developed anywhere in the uk

  3. avatar Chris Longley says:

    Isnt it time the people involved in the housing industry to wake up and smell the roses?

    Some of you still arent willing to accept your precious but precarious house price boom was based on the low credit rates found under the credit boom of EU membership. Add in some unchecked immigration policy and we have a boom, thanks to some dodgy accounting to keep Gordon Brown popular.

    We have financial woes globally. A double dip recession in the UK, the majority of EU governments are bankrupt relying on German bail outs, the banking industry is in crisis, BOE governor Mervyn King admits we arent nearly half way throught it, unemployment is at the high rates for decades, the government is spending £7 for every £6 it raises and austerity cuts havent had an impact yet.

    However, we still see agents putting valuations of housing at pre 2008 prices and quite happy to see them sit on the market for 6 months.

    The lowest interest rate period for 80 years still cannot help the housing market because housing is still massively over-valued.

    We are at a staus quo. Either vendors will sit and wait ( a very long time) or prices will dramatically crash as the market comes to a halt. If it isnt there already.

    Unless you have bought in Greenwich or Westminster, be prepared to lose some of your house value as the market forces the prices down even more.

    Trust me, I am a professional.

  4. avatar S.LANDLORDS says:

    Thank heaven for people like Chris Longley who can explain basic economic principles and the logic underlying market forces to people who are obviously still completely blinded by greed. So prices have risen in East Anglia, have they? As property owners, this would benefit us, but I have yet to see any evidence of that fact. Several of my friends have property stagnating on the market, having been ill-advised by agents regarding its value. I also receive regular notification of auction results and now see far larger numbers of properties still “Unsold and Available” following each sale. Immediately prior to reading the mailshot from Propertywide, I looked at a house in Norwich which is now being offered for sale by auction for the third time, having remained unsold since early in the year. What was that saying? Oh yes, ‘you can’t fool all of the people all of the time’! The effects of the current economic crisis: the property market crash, negative equity etc. are etched into the psyche of even the dumbest house buyer, and it is going to be a considerable length of time before that scar wears away sufficiently for the market to again be fuelled by estate agent hype alone. We might even have to wait for the next generation of ftb’s.

    • avatar Chris Longley says:

      Problem is Mr Landlord is the Agents and those corperations with a vested interest in high prices have the means and methods of continuing their ill advised sales pitch about the property market to the general public. It`s spreading ignorance. We rarely see the truth and those in previous years warning of the situation were not reported by the media.
      I think we are starting a slow motion housing crash that will see prices continue to fall as earnings / prices ratio eventually realigns itself.
      Its no better Euro wide. Here are some astounding facts…..Spain has more new built unsold properties than America! The southern Irish were building more new homes than were being built in England before the crash! For a population 9 million? You go figure.
      I`m afraid we are being led by sheep, greedy sheep with no more than profit in mind than economic stability.
      I dont think its going to change soon unfortunately.

  5. avatar Andy says:

    Now this long term over-valuation of property wouldn’t have anything to do with greedy Estate Agents rubbing their hands and charging a percentage to sell your property. I’ve just been quoted £6.5k to sell…and what do they do for the money. Take a few snaps, look at other property prices/sales in the area, write a bit of guff about the property then stick it in a newspaper and on a website! My advice? DIY – try housetree.co.uk £69!! or Housesimple.co.uk £445 or movehomeonline.co.uk £299. Then perhaps we can put some greedy agents out of business and drop prices a bit! It’s not rocket science to sell a house – they don’t even need a licence – see news.bbc.co.uk/1/hi/magazine/4829330.stm
    Worrying huh?

  6. avatar Keith says:

    Surely, house price statistics are incorrect fot they have been skewed by the London effect. In London, mid and low house prices seem to be falling or at best static. The reason why prices seem to be rising is that the super-high priced properties are being bought by foreign billionaires in London and these sales would have a disproportionate weighted effect on average prices.

    Is it not time that the Building Societies that compile these statistics took this factor into account?