London suffers biggest annual decline in house prices since 2009


The cost of homes in the North West, South West and Wales have swelled by over three per cent in the last year.

Honing down the locations of the biggest house price climbers, Blackburn has seen prices rise over 16 per cent in the last 12 months.

At the other end of the spectrum, the London housing market, known for its high prices, saw prices fall by 2.6 per cent in the last year.

The annual decline of prices in London is the biggest since August 2009.

Average house prices by region in January 2018 with monthly and annual percentage growth

Average house prices by region in January 2018 with monthly and annual percentage growth

Average house prices by region in January 2018 with monthly and annual percentage growth

Taking all regions into account, the average cost of a home across England and Wales is now £299,556, up £1,512 on a month ago and £1,700 higher than a year ago, data from Your Move and Acadata shows. 

But, this average house price figure does not reveal the full story. Last month marked the ninth consecutive month of the slowdown of annual house price growth.

On a monthly basis, average house prices rose by 0.5 per cent, or £1,512, over the month, marking the biggest increase in five months.

The low number of homes coming up for sale also remains a problem, and Oliver Blake, Your Move’s managing director, said the sector needs to work together to ‘increase movement within the market’ and eliminate the ‘bottleneck’ of available homes.

In the North West, prices have risen by 4.6 per cent in a year, and in the last month increased by 0.3 per cent. Blackburn has seen prices soar by 16.4 per cent in a year.

Warrington saw prices increase by 10.3 per cent in the last year, while in Greater Manchester the cost of a home increased by 4.3 per cent over the same period.

Meanwhile in South West, prices increased by 4.1 per cent year-on-year and by 0.5 per cent in the last month. In Wales, annual prices are up by 3 per cent and have climbed 0.7 per cent in a month.

Rising high: Blackburn has seen prices soar by 16.4 per cent in a year, Your Move said

Rising high: Blackburn has seen prices soar by 16.4 per cent in a year, Your Move said

Rising high: Blackburn has seen prices soar by 16.4 per cent in a year, Your Move said

Ups and downs: Annual house price growth, including and excluding London and the South East

Ups and downs: Annual house price growth, including and excluding London and the South East

Ups and downs: Annual house price growth, including and excluding London and the South East

Prices in London fell by 0.8 per cent, or £4,662, in January, with the average cost of a home in the capital standing at £593,396. 

Annually, property prices in London have fallen by 2.6 per cent, marking the biggest decline since August 2009. 

Wandsworth has seen the biggest price drops in the capital, with average prices falling 14.9 per cent to £685,567. In the City, average prices are down 10.8 per cent on a year ago, with the average cost of a home around £844,768. 

But, in cheaper areas like Bexley, prices have risen by an average of 4.5 per cent in a year, to £363,082.    

On the up: Warrington saw prices increase by 10.3 per cent in the last year

On the up: Warrington saw prices increase by 10.3 per cent in the last year

On the up: Warrington saw prices increase by 10.3 per cent in the last year

Roaring away: In Wales, the average cost of a home increased by 3 per cent last year

Roaring away: In Wales, the average cost of a home increased by 3 per cent last year

Roaring away: In Wales, the average cost of a home increased by 3 per cent last year

Average House Prices in England & Wales for the period from February 2017  to February 2018

Average House Prices in England & Wales for the period from February 2017  to February 2018

Average House Prices in England & Wales for the period from February 2017  to February 2018

In the notoriously expensive South East of England, average annual prices have fallen by 0.5 per cent, but increased by 0.3 per cent on a monthly basis.

In the North East, while prices dipped 0.7 per cent in the last year, on a monthly basis they ticked up 0.3 per cent.

Last month, there were 60,000 property transactions registered at the Land Registry, which is 4 per cent less than seen in January.   

Mr Blake said: ‘The region plays an increasingly important part in the housing market of England and Wales as a whole. 

‘In our annual mix adjustment used to calculate the average house price for this report, the North West’s market share, based on transactions in the last year, sees the biggest increase of all regions, up 0.5 per cent. 

‘It now makes a greater contribution to the average house price than any region other than the South East.’

Commenting on their expectations for the housing market for the rest of the year, Peter Williams and John Tindale of Acadata said: ‘The Bank is signalling rate rises – perhaps two – in 2018 and higher interest costs normally mean lower house prices. 

‘Of course, lenders have come into the year with ambitious lending targets which some will try to largely achieve in the first six months. 

‘We can thus expect to see very competitive mortgage pricing to help underpin the market.’

Decline: In London, prices have fallen by 2.6%, marking the biggest annual decline since 2009

Decline: In London, prices have fallen by 2.6%, marking the biggest annual decline since 2009

Decline: In London, prices have fallen by 2.6%, marking the biggest annual decline since 2009

Making sense of it all: Comparison chart showing house price data from key sources

Making sense of it all: Comparison chart showing house price data from key sources

Making sense of it all: Comparison chart showing house price data from key sources



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