Recently, we wrote a blog article about the average UK house price recording a year-on-year increase, reaching an average high of around £313,655. While the average asking price for a property in the UK has risen slowly over the previous 12 months, new data from property website Zoopla has shown that while 2017 to date has been a success compared to the same period in 2016, March 2017 when compared to January 2017 has actually recorded a decrease in average property prices in the UK.
According to new statistics published by Zoopla, between the start of January and the end of March, homes in Britain lost £1,000 in value. This accounts for an average drop of 0.4%, or £11.15 per day.
As is usually the case with studies spanning the entirety of Britain, some areas fare better than others. For example, the sharpest fall in house values was seen in south-west England, with a decrease of 0.6%. Wales, however, was an anomaly as that there was actually a house price increase between March and January 2017, rising 0.4%.
While Q1 2017 saw house prices in Britain fall slightly, on a year-to-year basis, house prices are up 1.4% compared to the same period in 2016. However, Zoopla did not provide figures of monthly growth during 2016. As a rule, the housing market is relatively quiet during the start of the year, with the property market recovering in the spring, as such, we may see better news in Q2 statistics, although this trend may not continue due to the surprise general election in June. Typically, the property market stagnates a little around a general election as many property buyers and sellers put their plans on hold due to the uncertainty an election brings.
England was the country to see the greatest quarterly drop at 0.4%, while Scotland saw a drop of less than 0.1%. Meanwhile, on a year-to-year basis, all three countries saw property prices increase: Scotland increased 0.9%, England was up 1.5% and Wales was up a huge 2.1%. Of all the Welsh towns that saw a property price increase between January and March 2017, Tredegar had the largest property value increase, at 1.8%.
There have been several signs that the housing market in the UK has been slowing in the first few months of 2017. Things such as UK house prices falling for the first time in two years, and the Bank of England reporting that the rate of mortgages being approved is dropping demonstrate that the market is going through a period of stagnation. That said, the numbers provided by Zoopla, especially in relation to property prices in Wales, show that the Welsh property market is thriving despite an overall slowing of the property market.
As one of Cardiff’s largest estate agents, we have the knowhow to get the best price for your property. If you’re looking to sell your Cardiff flat or house, get in touch with us on email: firstname.lastname@example.org, or by popping into our Albany Road branch, where a member of our sales team can help take the stress out of selling your property.