House prices dropped across Great Britain in the third quarter of 2017 with London and the West Midlands property markets suffering most.
Research suggests that prices in England fell by 0.85 per cent – or just under £2,200 – on average between July and September, with London recording the biggest fall at 0.99 per cent and the West Midlands second at 0.97 per cent.
Property website Zoopla found that only Wales and Scotland saw house prices rise in the period July to September, and even then it was by minute amounts – 0.22 per cent, or £54, and 0.04 per cent, or £393 respectively.
Falling house prices: Only Scotland and Wales bucked the trend
In England, the North West proving the most resilient region in terms of price falls, with a decline of 0.59 per cent.
This echoes official figures released this week, which also highlighted a clear North-South divide, with London and the South East coming off the boil and growth being driven by Northern regions.
Zoopla said values in the North West edged down by 0.59 per cent or £1,120 since July, while in London, where housing affordability has become particularly stretched, price falls were the most severe, with an average decline of 0.99 per cent or £6,633.
Similarly, figures by the ONS have showed that the North West saw the biggest annual price growth at 6.5 per cent, while London the smallest at 2.6 per cent in the year to August.
The West Midlands saw the second largest dip in values, with price drops of 0.97 per cent, or £2,130 in the quarter.
Price rises: Top of the list is the small portside town of Caernarfon in Wales, which saw the average home value rise by 1.57 per cent, or £2,563 between July and September
The analysis also looked at how house values changed at a more local level. In this case, Wales remained a winner, with half of the top ten performing towns located there, but towns recording the biggest price falls were located across the country.
Alton in Hampshire was identified as having the weakest house price growth in Britain in the third quarter, with properties there decreasing in value by £10,900 on average (a 2.17 per cent decline).
The market town of Alnwick, in Northumberland, saw the second highest decrease with values dropping by 2.1 per cent, or over £5,000, while the riverside town of Isleworth, in Greater London, followed with prices down 1.9 per cent, or over £9,500 in the quarter.
Meanwhile, top of the list is the small portside town of Caernarfon, which saw the average home value rise by 1.57 per cent, or £2,563. Welsh towns of Bangor, Llanelli, Milford Haven and Bridgend also made it to the top 10, placing second, fifth, ninth and tenth respectively.
Tewkesbury, in Gloucestershire, is England’s top-ranked town and takes third place overall, with property prices increasing by 0.91 per cent over the last quarter to an average of £289,429.
The town of Alnwick, in Northumberland, saw the second highest decrease in values
Lawrence Hall, spokesperson for Zoopla comments: ‘We’ve seen a decline in house prices during the last quarter, which is potentially good news for first-time buyers.
‘Although the Bank of England has hinted at interest rate rises, the Prime Minister’s recent announcement to extend investment in Help to Buy and build more homes throughout the country will bring further welcome news to those looking to get a foot on the property ladder.’
Zoopla calculates that the total value of the British housing market fell by £62.7 billion during the third quarter of 2017, making it now worth around £8.1 trillion.
