Research by estate and lettings agent, Barrows and Forrester, has revealed the scariest pockets of the UK property market, where homeowners have been haunted by a drop in the value of their home since last Halloween.
Barrows and Forrester analysed current market values for bricks and mortar across each area of the UK and how these values have changed on an annual basis after adjusting for inflation.
The research shows that UK house prices have climbed by 14% in the last year, although this rate of growth does fall to 3% when adjusting for inflation.
However, the research also reveals that after adjusting for inflation, no less than three areas of the UK have actually seen property values decline – Scotland (-0.6%), London (-1.9%) and Northern Ireland (-3.7%).
But this paranormal property price decline doesn’t stop there. When analysing the market on a more granular level, 25% of all UK areas have seen house prices dip since last Halloween after adjusting for inflation.
London’s lethargic market has seen some of the most spine tingling price reductions and nowhere more so than the City of London, where property values are down 20% in the last year.
In Westminster, house prices have dipped by 15%, while Kensington and Chelsea (-14%), Hammersmith and Fulham (-14%) and Camden (-10%) have also seen some of the largest Halloween house price drops in the UK.
No surprise then, that these areas have also seen the largest cash price drops in the last year, with between £94,000 and £209,000 being wiped from the average house price after adjusting for inflation.
Outside of London, it’s Barrow-in-Furness that is home to the most frightful housing market for homeowners, with house prices down 9%, along with Aberdeen, whilst homeowners in Stevenage have seen the largest pounds and pence reduction with property values dropping by £15,000.
Managing Director of Barrows and Forrester, James Forrester said, “It’s certainly been a scary time of late for the nation’s homebuyers, many of whom will have been frightened away purchasing a property due to the sharp and continued increase in mortgage costs.
But spare a thought for those homeowners who have been haunted by a decline in the value of their home.
While the housing market has so far remained steadfast in the face of wider economic uncertainty, the reality for some is that record rates of inflation have actually reduced the value of their home since last Halloween.”