House prices continue to rise but Land Registry data shows how far sales have plummeted since EU referendum

Pockets of the UK are continuing to experience mini house price booms despite transactions falling in all regions in the year since the Brexit vote.

Figures from the Land Registry show that UK house prices in August rose 5%, up from 4.5% in July, to £225,956.

On a monthly basis values were up just 0.5%.

Regionally, many parts of the UK are seeing annual growth above the average, although most are struggling to get above the average monthly growth rate of 0.5%.

The north west leads the annual growth tables, up 6.5% to £159,865 during August, and also has the largest monthly growth among the English regions at 2.3%.

Prices in the east of England during August were up 6.4% annually, although flat on a monthly basis, to £288,440.

The east midlands had the same rate of annual growth and was up just 0.3% since July to £183,762.

Similarly, the south west was up 6.4% annually to £188,447, up 0.6% on a monthly basis.

Prices in London were up by the least annually at 2.6% and down 1% on a monthly basis to £484,362.

House prices may still be rising annually, but the Land Registry data gives the first official snapshot of transactions in the 12 months since the Brexit vote and shows a different story.

In June 2017, the latest figures available, the number of property transactions completed in the UK decreased by 6.7% year-on-year to 85,528 sales, the Land Registry said.

Much of this decline was due to an 11% drop in England to 66,082 sales, with the rest of the UK experiencing increases.

Transactions in Scotland were up 19.3% to 10,473 on an annually basis, 5% in Northern Ireland to 5,106 and 1.4% in Wales to 3,867.

Further analysis of the Land Registry data shows sales volumes have fallen across all English regions during those 12 months.

London had the steepest decline in the 12 months to June 2017, falling 20% to 6,768, while the South-West and East England saw 14% drops to 7,928 and 7,795 respectively.

Commenting on the figures, Paul Smith, chief executive of of haart estate agents, said: “House price rises seem unstoppable – home buyers are having to pay £11,000 more for their homes than the same time last year.

“A likely interest rate rise in the coming months could mean a further surge, as buyers fight over limited stock in the run-up to Christmas, and look to lock down a cheap fixed rate mortgage before the Bank of England steps in.

“However, as prices rise so does unaffordability – the Government must finally act on a Stamp Duty cut for first-time buyers.

“Stamp Duty is holding back a whole generation of young people already struggling to save for a deposit, and it is time to bring this injustice to an end. For hard-working individuals who have to borrow for the basic cost of living, saving for both Stamp Duty and a deposit to own their own home is a far-flung reality. Especially as our branch data shows first-time buyer deposits are up 6% on the month, outpacing inflation.

“The Autumn Budget is surely the last chance for Theresa May and Philip Hammond to provide meaningful help to young people and families struggling to get on to the ladder. If they fail to think big, it looks likely this will be their last.”

Further analysis by property investment platform Homegrown has used the Land Registry figures to calculate that 28 UK towns and cities have suffered a lost decade in house price growth in the ten years since the start of the financial crash in August 2007.

Anthony Rushworth, founder of housebuilding investment platform Homegrown, said that on August 9 2007 BNP Paribas froze three of its funds, suggesting it could not value the sub-prime loans contained in the complex financial instruments on its books. Doomed Northern Rock chief Adam Applegarth later described it as “the day the world changed”.

Since then, the research shows that Belfast, Hartlepool and Blackpool have suffered worse than anywhere in the UK.

Average property prices in the Northern Irish capital are 43.7% lower than they were in August 2007 at just £120,351.

Hartlepool failed to recover with a 19.5% drop to £100,957 while prices in Blackpool are still 16.4% down at £105,057.

Liverpool is still 1.7% down with average prices struggling back to £126,862 while Newcastle is 1% down at £162,876.

Rushworth said: “This is two-speed Britain in action. It’s now clear that great swathes of the UK have suffered terribly in the aftermath of the financial crash while areas in high demand have shrugged it off and surged ahead.

“We are too reliant as a country on a small number of densely populated areas, particularly in London and the South-East.

“The technology exists to take a much more balanced approach to where Britons live and work.

“The Northern Powerhouse promised exactly that, but it will take more than a marketing campaign by one Chancellor to really shift the balance and create a more stable property market for future generations.”

See how your location fares

Location

Average Price Aug 2007

Average Price Aug 2017

Amount Lost in 10 Years

% Loss in 10 Years

Belfast

£213,626

£120,351

£93,275

43.7%

Hartlepool

£125,444

£100,957

£24,487

19.5%

Blackpool

£125,696

£105,057

£20,639

16.4%

Middlesbrough

£128,537

£108,904

£19,633

15.3%

Preston

£141,730

£126,332

£15,398

10.9%

Carlisle

£143,276

£129,425

£13,851

9.7%

Sunderland

£126,704

£117,212

£9,492

7.5%

Barnsley

£124,053

£115,482

£8,571

6.9%

Scarborough

£166,250

£157,985

£8,265

5.0%

Darlington

£139,934

£132,142

£7,792

5.6%

Newport

£164,648

£157,343

£7,305

4.4%

Wrexham

£157,502

£150,615

£6,887

4.4%

Merthyr Tydfil

£101,607

£95,253

£6,354

6.3%

Gateshead

£136,924

£130,603

£6,321

4.6%

Blackburn

£118,181

112,178

£6,003

5.1%

City of Glasgow

£130,438

£125,634

£4,804

3.7%

Rochdale

£132,120

£128,132

£3,988

3.0%

Doncaster

£127,974

124,186

£3,788

3.0%

St Helens

£130,516

£128,108

£2,408

1.8%

Liverpool

£129,000

£126,862

£2,138

1.7%

Bolton

£132,488

£130,472

£2,016

1.5%

Swansea

£142,612

£140,661

£1,951

1.4%

Wakefield

£145,852

£144,016

£1,836

1.3%

Stoke-on-Trent

£105,956

£104,250

£1,706

1.6%

Newcastle upon Tyne

£164,493

£162,876

£1,617

1.0%

Aberdeen

£168,376

£167,903

£473

0.3%

Wigan

£130,307

129,846

£461

0.4%

Rotherham

£136,042

£135,893

£149

0.1%

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One Comment

  1. P-Daddy

    Brings new meaning to the old expression ‘its grim up north’

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