It's good news if you're a first time buyer!
It’s a strange time for property prices. In the wake of Brexit-related uncertainty, it’s never clear whether the time is nigh to go for it and buy a new home, or whether we’d be better off waiting until things settle down next year.
According to a new report by Zoopla, this ain’t the time to be selling a home as, on average, the reduction in UK property prices currently stands at a hair-raising £26,131.
If you’re a first-time buyer you’ll be gleefully rubbing your hands together at this news, but for sellers it’s a pretty disappointing state of affairs.
Of course, some parts of the country are seeing bigger drops than others – namely, Bradford, which is home to the largest discount of 7.77 per cent, or rather £10,738. Ouch. The London suburb of Mitcham closely follows, with an average discount of 7.45 per cent (£47,165), while Newcastle upon Tyne is just behind at 7.18 per cent (£13,721).
It figures that the Royal Borough of Kensington and Chelsea is home to the biggest value discounts, thanks to initial sky-high prices. Average reductions are a mind-boggling £127,394 (8.16 per cent). Which, incidentally, is about the price of a house in Bradford.
If you happen to live in Bedford, York or Peterborough you can safely breathe a sigh of relief, as price reductions in these places are by far the lowest – 5.62 per cent, 5.66 per cent and 5.73 per cent.
Glasgow, Manchester and Liverpool have proven fairly immune to discounts. Not so for for Brighton, which has the largest share of reduced priced properties (46.60 per cent). Eek.
Zoopla spokesperson Lawrence Hall comments: ‘Currently, well over a third of properties on the market have been reduced in asking price, with the average discounts higher than six months ago. This should be welcome news for prospective first-time buyers looking to get a foot on the property ladder.’
‘Those seeking bargains could consider areas such as Bradford, Mitcham or Newcastle for their property hunt. With further market uncertainty ahead, it will be interesting to see whether these reduction figures rise in the coming months.’
On the upside – for sellers, that is – the Office for National Statistics tells a different story. It says that average house prices have still increased over the last year, albeit marginally by 3.1 per cent.
You can check out Zoopla for the full report and for more news on property prices.