This is a tough one to answer. Looking back the decline in UK residential property prices started around the end of 2007. There has been much data published on prices falling month by month, although since March 2009 some have been suggesting price increases (Halifax reported an increase of 2.6% in May 2009), but for many of us it doesn’t feel like prices are increasing.
According to an article published in Telegraph.co.uk most towns and cities across the UK have fallen by over 20% from their peak in late 2007. Some areas have seen dramatic falls in prices (figures based on February 2009)…
Blackpool: -28.2%
Kilmarnock: -26.5%
Hertford: -26.5%
Bridgend: -22.5%
Exmouth: -21.4%
Windsor: -21.1%
London: -21.4% (data from another source)
A useful source of data on house price changes in 12 months to April 2009 can be found on the UK Government Communities websites ..link http://www.communities.gov.uk/documents/statistics/pdf/1247222.pdf The regional index highlights a fall of 15% in London and 14.8% in the South East. But the largest falls by far have been in Northern Ireland where prices have fallen around 23% in the 12 months to April 2009.
Probably the key question for many is what about future house prices? Well, there are many opinions on this, much will depend on the impact of unemployment, but from reading the many analyst reports our interpretation is we may have another 10% fall in average prices – but clearly this will vary by town / city.
