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Average UK house price falls £1,000 since start of year


04-16-2017

Property website Zoopla says sharpest falls are in south-west as housing market and mortgage data point to a slowdown

UK house prices have fallen since January, says Zoopla.

UK house prices have fallen since January, says Zoopla. Photograph: Alamy Stock Photo

Average UK house price falls £1,000 since start of year

Property website Zoopla says sharpest falls are in south-west as housing market and mortgage data point to a slowdown

The average home in Britain has lost around £1,000 in value since the start of the year, according to property website Zoopla.

The company said its data showed prices were down 0.4% between the start of January and the end of March, the equivalent to a fall of £11.15 a day for the average property.

But it noted varying patterns in different parts of the country, with prices falling most sharply in south-west England, by 0.6%, but bucking the trend in Wales by rising 0.4%.

Compared with a year earlier, average British house prices were up 1.4%, Zoopla said. It did not provide figures on annual growth in previous months. The housing market is typically quiet around the turn of the year but usually picks up in the spring, meaning the price falls since the start of 2017 could be reversed.

Other housing market indicators have pointed to a slowdown in recent months. UK house prices fell for the first time in almost two years in March, according to Nationwide, with the average price dropping to £207,308 following a 0.6% rise in February. Bank of England figures showed mortgage approvals fell for the first time in six months in February.

“The softening in values and continued low mortgage rates are positive news for first-time buyers trying to get on to the property ladder,” said Zoopla’s Lawrence Hall.

“These prospective homeowners will be pleased to see a decrease in overall property values as seemingly unstoppable growth has pushed many areas out of reach in the past year.

“It’s also encouraging to see the resilience of the Welsh property market which in the past has often lagged behind England and Scotland.”

Zoopla’s analysis of its property values data showed prices in England dropped 0.4% over the first quarter of the year but were little changed in Scotland, dipping by less than 0.1%. Year-on-year comparisons showed house prices were up 2.1% in Wales, 0.9% in Scotland and 1.5% in England.

Looking at property values by town, it found Tredegar in Wales had the largest increase between January and March, with a 1.8% rise. Leominster in Herefordshire saw the biggest rise among English towns, with prices up 1.7%. In Scotland, the biggest increase was in Livingston, West Lothian, with average prices up by 0.7%.

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