2009 – a year of two halves for property market sales

While home values in Britain managed a gain of 2.5% over 2009, average house prices fell 2.2% over the first six months of the year (from £205,607 to £201,067) before recovering in the second half by 4.7% to reach an average value of £210,661 by the year end, according to Zoopla.

One of the biggest factors in the house price rebound in the second half of last year was the recovery in market activity with increased transaction volumes leading to higher property prices.

Transaction volumes were particularly strong in the fourth quarter of 2009, up by double-digits in all regions compared to 2008 with the exception of Scotland where sales levels have been slow to recover and were up only 8% in Q4 09 versus the previous year and down 33% for the full year 2009, compared to a decline of only 1% in England and 12% in Wales.

Nicholas Leeming, Commercial Director of Zoopla said: "2009 was a tale of two halves for the UK property market. The first half of the year was pretty poor coming off a year of transaction volumes at historic lows. The second half of the year was a different story as sales started to bounce back strongly, particularly in the south where buyers returned to the market as prices became tempting and to take advantage of the stamp duty holiday."

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