Arthur takes a look at the ever changing property prices.
The Brexit vote in June saw a sharp downturn in property prices. However, recent indicators have shown that prices have now returned to pre-vote levels in England and Wales. Residential property prices have grown by 0.1% month on month after the sharp downturn, meaning the average price is still around £9000 higher than at the same time last year.
Despite the picture looking good overall, there are still large regional differences. Firstly, we shall look at London. Prime property in London is still struggling. Four of the five most expensive property areas in London have seen prices drop by over £100,000. Furthermore, transactions have decreased by around one third in the previous three months when compared to last year. This lack of stimulus only helps to worsen the situation.
However, when looking at other areas of London, we see a different picture. The five cheapest areas in London have seen impressive growth in both prices and transactions. This shows the change in market priorities. Investors are now looking for better value for money; or maybe simply do not want to risk the amount of money it takes to buy property in highly desirous areas.
This decision to invest in areas where property prices are cheaper is reflected in other areas of the country. Rutland and the East Midlands have seen the highest annual growth month on month of over 20%. However, this number may have been skewed by the extremely low transaction volume. Second and third in terms of percentage increase were both commuter towns. Thurrock and Luton have excellent rail links to London and, with fears of an economic downturn, are becoming more and more desirous.
In the north of the country, areas such as Yorkshire and the North East saw moderate increases of around one percent, with no area seeing a decrease on the previous year.
Whilst these are promising signs, it is still too early to tell what is to come. However, we shall keep our finger on the pulse.
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