Residential property prices are falling across the UK, led by inner London where they have dropped by 10.4% in the last two months, representing a loss of £82,000 in average listing prices, new research from TwentyEA shows.
Many regions outside London are now seeing prices firmly starting to fall, with an average reduction in prices of 4.5% in the last month (c£17k or c£21k since June 2022).
The data provides a clear indication that there is a slowdown in the market, after months of property price growth.
TwentyEA Research: Instruction Prices – Regional Instruction Prices
| Region | Price Change – Last 2 Months | Price Change – Two Years |
| East Midlands | -1.8% | 11.8% |
| East of England | -4.1% | 13.7% |
| Inner London | -10.4% | 11.8% |
| North East | -1.9% | 8.7% |
| North West | -1.8% | 12.6% |
| Northern Ireland | 3.2% | 11.9% |
| Outer London | -3.6% | 13% |
| Scotland | -5.6% | 6.4% |
| South East | -9.8% | 10.4% |
| South West | -5.7% | 16.2% |
| Wales | -6.7% | 15.3% |
| West Midlands | -3.1% | 14% |
| Yorkshire and The Humber | -2.5% | 8.8% |
Stuart Ducker, strategic solutions director of TwentyEA, commented: “London has seen a significant drop in instruction prices, while the South East is closely behind (-9.8%), followed by Wales (-6.7%), Scotland (-5.6%), the East of England (-4.1%).
“Over the last five years, London prices [despite the recent falls] have still risen 11.6% [or £80,000], so this does put the recent drop into perspective.
“So why are asking prices starting to fall across all UK regions (save Northern Ireland)? There is one main answer to this question and that is consumer confidence being low. This is a result of several factors such as the cost-of-living crisis, which has impacted the pound in your pocket being worth less than it was; relative Government instability, which often promotes uncertainty about the future; the general affordability of housing (especially for first time buyers); and the relative increase in the supply of properties for sale.”
Veteran of 3 downturns retired Agent John Durrant has written an invaluable post on how agents can handle this ‘Oh God’ moment as he puts it. We’re not allowed to post links here, but if you google ‘veteran bestagent’ you’ll find it. I can’t recommend it highly enough, some of the best wisdom I’ve ever read from an agent.
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Surprised at this article headline to be honest, as again it may be picked up by the press and hit buyer and seller confidence. There is a difference between agreed sale prices falling and inflated asking prices dropping. The headline is ‘House Prices are starting to fall’ and only in the detail does it say ‘Asking prices’. It is really important to advise Clients there is a softening in the market and Vendor expectations are coming more in line now with the current overall cost of living situation we are in, and although asking prices are now no longer increasing, achieved sale prices continue to rise, but not at the rate that was previously the case. When sale/completed prices fall, that would support the headline I feel that prices are staring to fall.
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A neighbours house went up for sale around £50k above market value on the basis the elderly owner had gone in to a home as the family felt it was ‘worth a try’. After loads of interest and viewings over 4 weeks, it sold for a little over (£6k) what I expected, however the perception was a price reduction rather than the punt it was.
Everything is selling in SE London, however a lot of vendors are filing opening asking prices under ‘worth a try’ or ‘guide price’ as there is so little available.
It’s not quite the doom and gloom some portray.
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I fear the writing is in the wall and we and our selling clients need to take note. How can prices not fall in this rapidly and seriously deteriorating economy?
I shall be advising too heavily priced clients to reduce properly NOW, rather than chase the market down, reducing a bit at a time, losing heavily in the long run as happened in the early nineties.
Boom bust is about to kick in. I’m not a doom monger, I’m a realist.
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My offices average instruction price in July was £270k. An £800k listing in August has moved this up to £340k in August. So my average listing price has increased by 25%. This does not mean the market has increased by 25%!!! Ridiculous to say Inner London prices have fallen 10% in two months, probably less super prime listings bringing the instruction price down. Sadly these headlines will make some people believe they’re over paying and withdraw from sales, having worked through two downturns I’ve never seen prices drop 10% in two months so in the long term this is going to cost that buyer when they buy again. Such a misleadingly written piec
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