House values plunge 11% in eight months

Having hit a five-year low in February 2009, UK property values rose steadily during the rest of that year and throughout the first half of 2010, but have since fallen for the past eight successive months.

In Scotland prices have dropped even further – down on average by £21,489 (12.37%) and in Wales by £17,205 (10.73%).

Across Britain, average house prices are now 18.01% (£45,594) below their peak, with the average house price at £201,911 compared to £247,505 in October 2007. The recent dip over the past eight months could well have created a buying opportunity if prices start to pick up in the second half of the year as predicted by many.

Regionally, the North East has been hardest hit over the past few months, down 14.12% since last July with average local house prices now at £146,242. London has proved most resilient down only 7.59% over the same period to an average of £378,295 today. Property values in the North East now stand at 24.39% below their October 2007 peak, a massive drop of £47,173, compared to London where prices now are only 8.36% below the peak levels having fallen £34,527.

Nick Leeming, Business Development Director at Zoopla.co.uk, said: "While it has been a challenging period for the property market over the past few months, the recent dip in prices and the notable variance between regions may have created some interesting buying opportunities.

"The first half of 2010 provided strong gains in market values but, since last summer, economic uncertainty and lending constraints have eroded these gains and put downward pressure on house prices."

 

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