London house prices plunge but it’s not so grim up north
Forget London and the South East. If you want property going up in value head for the North of England. New reports show prices in the capital area are falling fast – with those in the plummiest districts plummeting the most. The new hot spots are Blackpool, Durham, Lancaster and many other towns outside London.
Few commutable to London areas have gone up in value – Swindon is an exception. But otherwise, those looking for home price growth should head North – Yorkshire, Lancashire, Humberside, the north Midlands and many parts of Scotland.
To find bargains look at towns previously ignored. Blackpool, Lancaster and Durham are among the fastest price movers, new figures suggest.
Between the first and second three-month period of this year the number of homes sold in Blackpool increased by 17%, according to online estate agents House simple’s research in Land Registry statistics.
In figures covering 60 towns and cities, seven out of 10 areas registering the biggest growth in property sales in the second three months of the year against the first quarter were in the north of England. Many parts of Scotland and Wales are currently bucking the national trend of falling prices as well.
Overall, online estate agent Right Move says the average price of property coming to the market in the UK was down by 1.7%, or £5,222, in November alone.
It said the biggest falls were in London, where typical asking prices fell £10,793 (1.7%) and in the south-east of England, where prices were down £8,647 (2.1%). This means some of the most expensive London properties have now lost up to £250,000 over the past two years.
The move away from the priciest areas is due to several factors.
Affordability is vital. When even modest homes are 15 to 20 times annual earnings, few can buy. Some prices fall. If Manchester is too expensive, then someone looking for a bigger family house might look at Blackpool – it’s still within daily travelling distance.
The buy-to-let tax rules have changed. It’s now more expensive to buy a second home because the taxman hits you harder. So some would-be landlords decide not to bother.
And while the uncertainty over Brexit lasts – no one can reliably say what the effects will be on the economy – then people will get nervous about taking on new commitments such as a bigger mortgage.
The biggest falls were in London, where typical asking prices fell £10,793 and in the south-east of England, where prices were down £8,647