Fall in prime property values

Published on

Greater London

Prices of the UK’s most expensive homes have fallen for the second month in a row, according to the latest Prime Property Index from PrimeLocation.com.

The monthly index tracks the top 25% of the UK market by asking price. It reveals that prime asking prices have fallen 1.3% over the past couple of months, taking an average of £6,234 off the asking price of these homes over the summer.

In July, prime asking prices fell 0.5% and in August prices declined by a further 0.8%. This brings the current average asking price of UK prime homes to £476,302.

Prime asking prices in five of the UK’s 11 regions fell in July and in August nine of the 11 UK regions experienced this decline. Yorkshire and the Humber is the only region that experienced prime price growth in the past two months, equivalent to just 0.1%.

Despite this two-month decline, prices of prime homes for the UK as a whole are still 1.3% higher than this time in 2011, although this year on year increase has been getting smaller. In April, the price of prime homes was 4.8% higher than they had been 12 months before this, but this year on year increase has become gradually smaller every month since.

“The market for the UK’s most valuable homes is a resilient and healthy one, which is why this mid-year fall in prices is worth taking note of,” said Lawrence Hall of PrimeLocation.com.

“Owners and potential buyers of the UK’s Prime homes will be keeping an eye on price movements over the coming months as we discover whether this fall in asking prices is a temporary summer lull or whether this is actually sellers getting ready and adjusting prices for the September market.”

Meanwhile, London’s prime asking prices fell for a second consecutive month in August, with this two-month decline wiping £13,997 off the value of London’s most-desired homes. In July prime prices fell 0.2% and in August they fell 0.9%, bringing the average asking price for a Prime home in the capital to £1,326,716.

In August, 11 of 16 boroughs tracked by the index saw prices fall, while in July 8 of the 16 saw prime prices decline.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Financial services firms sign skills pact ahead of Chancellor’s Mansion House speech

More than 20 financial services organisations have signed a new agreement with government aimed...

Brilliant Solutions partners with Box Socials

Brilliant Solutions has partnered with Box Socials to give its members discounted access to...

Mortgage rates fall at fastest pace in almost two years

Fixed mortgage rates have recorded their biggest monthly reductions for almost two years, as...

Solo first-time buyers face almost a decade of saving before they can buy

Solo first-time buyers face saving for almost a decade before they can afford to...

Redwood Bank strengthens underwriting team with senior appointment

Redwood Bank has appointed Omkar Hushing as senior underwriting manager as it continues to...

Latest publication

Other news

Q&A: Claire Cherrington, PMS and Bankhall

Mortgage Soup fires the questions at Claire Cherrington, director of PMS and Bankhall. Mortgage Soup...

Financial services firms sign skills pact ahead of Chancellor’s Mansion House speech

More than 20 financial services organisations have signed a new agreement with government aimed...

How brokers can secure better client outcomes in a volatile market

Experience has always counted in the mortgage market. Brokers who worked through the financial...