Average property values in Britain’s prime regional property markets are largely flat, down 0.8% year on year, but some locations in Scotland, the Midlands and the North of England are seeing strong growth.
In cities the growth in prime property prices is led by Edinburgh, up 7.5% and Glasgow up 2.5%, according to the prime regional index from real estate firm Savills. In England prime prices have increased by 2.6% in the Midlands and by 1.8% in the North.
This compares with a fall of 4% in Cambridge and a decline of 3.2% in London suburbs. Prices also fell in Bath, Winchester and Bristol. Indeed, it is markets furthers from London that have seen their values remain stable over the last 12 months.
An analysis of the figures shows that the lower price bands are more resilient. In the £500,000 to £1 million sector only London and its suburbs have seen prices fall, down 3.5% and 1.1% respectively.
Homes in the £1 million to £2 million bracket have seen prices fall in all regions apart from the Midlands, the North of England and Scotland while at £2 million and above prices are down 6.2% in the London suburbs.
The report suggest that sellers need to make price adjustments to secure sales. It also points out that buyer caution in the face of increased stamp duty, potential interest rate rises and political and economic uncertainty, means sellers need to price correctly.
‘Properties will sell when they are priced for current market conditions. Generating competition is key to achieving a successful sale, and around a third of Savills regional market sales receive offers from three or more bidding parties. Still, sellers need to remain pragmatic and flexible on pricing, and we’ve seen a slight uptick in the number of sellers accepting price adjustments in order to achieve a sale,’ said Frances Clacy, Savills research analyst.
The research reveals that there are currently an average of around 1.14 price adjustments per sale across the prime regional markets, marginally higher than in 2017 when the figure stood at 1.1. In London, the equivalent figures are 1.42 adjustments per sale so far this year, compared to 1.32 last year.
‘We expect a continuation of the current cautious market conditions over the next year to 18 months, until there is greater clarity over the Brexit deal and the pace of interest rate rises,’ the report concluded.
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