The problem with looking at ‘averages’ at a high level is that property prices are so diverse from one street to the next, they are unlikely to make any sense to people locally. As such we look at data by town and city to gauge what variations there are across the country.
Property prices in Liverpool and Bradford continue at -23% below market the height of 2007/8, however Liverpool has achieved 9.1% year on year growth.
Manchester, Leeds and Newcastle upon Tyne prices are between -18% and -16% down on the previous market high, with Leeds achieving good year on year growth of 7.4%.
Birmingham, Peterborough and Nottingham prices are all -14% down on the 2007/08 height, closely followed by Sheffield and Leicester, whose prices are -13% and -11% down on the market high respectively. Both Peterborough and Nottingham have experienced good year on year growth of 8.3%.
Bournemouth and Southampton are both -7% down on the market high of 2007/08, with Cardiff, Portsmouth and Norfolk now only -5% down on the market height. Norfolk has reached 7.3% YoY growth.
Milton Keynes is now only -1% below the market high, having experienced strong YoY growth of 10.7%.
Cambridgeshire, Bristol and Reading prices now exceed the 2007/8 high by between 3% and 4%, with strong year on year growth ranging from 10.2% to 12.8%.
Prices in Oxfordshire and Brighton and Hove are now 11% and 15% above the height of the market, respectively, coupled with strong year on year growth of 11.4% and 13.2%.
London prices have recently dropped back very slightly, but remain 31% above the market high with year on year growth of 18.6%.
Prices in all towns (measured) exceed their market lows.
“What we are seeing now in house price growth is fascinating and potentially a real game changer. After 18 months of property price recovery (few areas have actually ‘risen’) property price growth is either slowing, stopping or falling – even in London ‘hotspots’. This is good news for most as rocketing prices create scary news headlines about affordability and these headlines damage the market. The real problem though is the 463,000 reported by HML to be in negative equity. If, in the regions, rapid growth as experienced in London doesn’t come, it could take years for these households to see house price recover. This potentially means they will be trapped in a home which is unsuitable and it denies the market of stock. Moving forward into 2015, forecasters are predicting small growth rates of 2-3%, even in London. Steady, small rises in property prices is a great market for anyone selling or buying, but with so few homes coming to the market agents will have to compete hard for your business.”
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