The UK property market has seen a mix of results in recent months, with some areas experiencing significant growth while others have seen prices drop.
In London for instance, prices have really been under pressure with property values rising just 6.7 per cent compared to the UK-wide average of 12 per cent.
The areas with the largest property price falls were College Park and Old Oak in Hammersmith and Fulham where average prices dropped by 36.2 per cent (£364,000); Abbey in Barking and Dagenham where prices fell by £115,000 (35.4 per cent); Notting Dale in Kensington and Chelsea where an average fall of £276,000 (-35.3%) was seen and Belmont in Sutton where house prices fell by £152,000 (32.2%).
Meanwhile, the latest market analysis by property purchasing specialist House Buyer Bureau also identified areas of the UK that have experienced significant house price falls since September 2022’s ill-fated mini-budget. In the worst-hit district, prices were slashed by more than £315,000. The resulting inflation, increased interest rates and withdrawal of mortgage products from the market caused the housing market to stall after a long period of growth.
According to the research, the areas where the market has really started to slide are the GU25 postcode district of Runnymede, Surrey, where the average house price has dropped by £315,000. Other areas that have seen significant declines include the GL51 postcode district of Cheltenham, where prices have dropped by £250,000 and the TN38 postcode district of Hastings, where prices have fallen by £225,000.
Managing Director of House Buyer Bureau, Chris Hodgkinson, commented: “We’ve seen house prices pushed to record highs during the pandemic and with the market now cooling, it’s no surprise that property values are heading back down to earth.”
However new research has revealed that in the past year property price increases of up to 64.5 per cent in London’s most up-and-coming neighbourhoods have been driving a positive momentum shift for the Capital’s struggling market.
According to research by London lettings and estate agent, Benham and Reeves, neighbourhoods such as Churchill in Westminster and Northcote in Wandsworth have seen the largest increases in house prices, with growth of 64.5 per cent and average house prices of £1 million and 61.4 per cent with property prices of £1.3m respectively.
The Wembley Central neighbourhood of Brent has seen prices rise by 51.4 per cent (£190,000), while the average price in the Hammersmith & Fulham neighbourhood of Parsons Green & Walham has increased by 51.3% (£610,000) in the past year.
Impressive house price growth has also been recorded in Merton’s Village neighbourhood (49.3%), Westminster’s Lancaster Gate (49.2%), Merton’s Merton Park (44.1%), Hackney’s Stamford Hill West (42.4%), Merton’s Wimbledon Park (39.1%), and the St Katharine’s & Wapping neighbourhood in Tower Hamlets (39.1%).
Despite the challenges, industry experts are optimistic about the long-term prospects for the UK property market. The country’s growing population and the ongoing demand for housing are expected to drive growth in the market, and with interest rates remaining low, many believe that now is a good time to invest in property.
Director of Benham and Reeves, Marc von Grundherr, commented: “London has largely trailed the rest of the UK where recent house price performance is concerned, but while the capital’s property market may have been somewhat muted throughout the pandemic, it’s far from falling out of favour.
There are many pockets of the London property market that have enjoyed some quite remarkable house price growth of late and they aren’t confined to any one corner of the capital.”
House Buyer Bureau, Chris Hodgkinson, explained: “We don’t anticipate this rot to set in across the entirety of the market.” However, he encouraged “Those currently pondering a move to sell their home quickly if they wish to secure anywhere close to the pandemic highs of the last two years.”
