London house prices balance falls in other regions

Posted on April 8th, 2011 | Categories - House Prices

London property prices are boosting average figures across the UK.

Property prices are splitting in two directions as areas in the South rise in value and other regions experience a decline.

House prices in London and the South East are on the rise, compensating for the falls recorded in other areas of the UK, according to new research.

The house price index, released by property company LSL, showed that residential property values across the country fell by 0.1% in March with annual growth levelling off at 0%. However, homes in Greater London and the South East increased by 3.7% and 0.1% in the previous quarter respectively.

The biggest regional fall of 3.4% was recorded in the Humber. Wales followed with a 2.9% decline overall but the counties of Blaenau Gwent and Monmouthshire experienced the largest dip hitting figures of over 11%.

Peter Williams, housing market specialist at Acadametrics said: “No change in the average price of a home over a year might be seen as good news in terms of achieving a degree of housing market stability, but is, in reality, misleading”.

He continued: “There are very different price patterns occurring in the market in terms of property type, price bracket and location. All regions except for Greater London and the South East have falling house prices and within the regions there are hot and cold spots which are anything but static in behaviour”.

David Newnes, of LSL Property Services, said that rising inflation means that property prices are falling at an “alarming rate”. He added that this is useful for buyers because they can secure the finance they need with a smaller initial deposit.