Homeowners feel pinch amid Brexit uncertainty
THE total value of Britain’s property market has fallen by nearly £27 billion since the start of the year, analysis by a website has found.
Zoopla now puts the total value at £8.19 trillion – down by £26.9 billion since January 1.
It said the average home decreased in value by £5.12 per day during the first six months of 2018 – adding up to a fall of £927 per property.
While this will be bad news for some homeowners, for first-time buyers falling property prices in certain areas could potentially provide opportunities.
Zoopla analysed property values data on its website between January 1 and June 30 to make the findings.
The North East of England was identified as the best-performing region over the six-month period, with average values there having increased by 3.31% since start of the year. Wales was second, with a growth rate of 1.4% over the the past six months.
Meanwhile, the South West of England was identified as the worstperforming region for house price growth since January, with a 2.51% fall in property values, followed by Yorkshire and the Humber with a 2.12% decrease and the East Midlands with a 1.22% fall.
On a more local level, Barrow-inFurness in Cumbria, Holt in Norfolk and Pontypool in South Wales were identified as the areas with the strongest percentage growth in property values across the first half of 2018.
Reigate in Surrey, Lydney in Gloucestershire, and Sturminster Newton in Dorset saw the biggest falls in property values at a local level during the first half of the year, Zoopla said.
Zoopla spokesman Lawrence Hall said: “Uncertainty around Brexit is a very real factor in the market ; however, on the positive side, the drop is creating a potential opportunity for first-time buyers to get a foot on the ladder in some regions across Britain.”
Surveyors have reported the number of newly-agreed house sales has been shrinking for 16 months in a row.
A net balance of 7% of surveyors reported seeing a fall in sales in June rather than an increase, marking the 16th month in a row of negative readings, the Royal Institution of Chartered Surveyors (Rics) said.
Its June report said the continuing decline in sales suggests the “subdued picture” of the market will persist.
The typical time it takes for house sales to complete has also edged up, from around 16 weeks in spring 2017 to around 18 weeks now, Rics said.
Its report also said that demand from home buyers remained flat in June, a trend which goes back to late 2016.
Simon Rubinsohn, Rics chief economist, said: “It is hard to see what is going to provide much impetus for activity in the housing market in the near term.”
Buyers may find they have more choice, as for the second month in a row, the flow of new properties coming to market has increased, with a balance of 10% more surveyors seeing an upswing rather than a fall.
But Rics said with the average number of homes on agents’ books close to historic lows, at 43 per branch, it is too early to suggest the issue of stock levels is diminishing as an obstacle to home buyers.
On the positive side, the drop is creating a potential opportunity for first-time buyers to get a foot on the property ladder Lawrence Hall, Zoopla