Property prices drop

It seems 2012 is definitely the year to consider improving your home rather than moving. The latest figures from the Land Registry show house prices in England and Wales are dropping, with an overall 1.3% decrease on last year.

In England, the North East appears to have suffered the most, with prices dropping 1.9% in just one month between November and December 2011. Properties in the South East are also starting to feel the pinch. Compared to the static prices at the end of 2010, average house prices have now seen a drop from £208,799 in December 2010 to £206,552 in December 2011.

Specific towns that have seen the biggest decrease include Hartlepool (-17.5%), Oldham (-10.7%), Merthyr Tydfil (-10%) and Middlesbrough (-9.9%).

Scotland has also been badly hit with an overall price drop of 2.2% from December 2010. Glasgow especially has seen a significant monthly change of -5.9% from November to December 2011.

The North West has seen the biggest improvement, with an increase of 1.5%. Despite this however, property prices are still down on 2010, with prices dropping from £117,217 (December 2010) to £113,204 in December last year.

London again, is the exception to the trend, seeing an annual price increase of 2.8% from £342,325 on average in December 2010 to £345,298 in December last year

Property experts cite the struggling economy as the main reason for the price drop. CEO of estate agent Marsh and Parsons, Peter Rollings comments; ‘economic uncertainty and fears over job losses have reined in home moves in many parts of the country, and undermined prices outside London.’ It’s not all bad news though, Peter expects activity to increase with the expiration of the stamp duty holiday in the next two months, as first-time buyers rush to complete their sales.

The next price update is due on 29 February for England and Wales and 1 March for Scotland.

The average regional property prices are calculated using the official sale prices published by the Land Registry and the Registers of Scotland.

For more information on property prices, please visit UpMyStreet.com or LandRegistry.gov.uk.

BY LAURA ARMSTRONG
February 2012