House prices within the UK's most expensive areas are beginning to fall, statistically within the newest UK House Price Index.
So, performs this mean now is the best time for prospective buyers searching for a good deal?
Which? has analysed the data to determine where housing prices are falling, and just what other activities you need to take into account before choosing a property.
Where are house prices falling?
The graph below shows regional breakdown of annual house price rates vary from January 2022 to January 2022, along with each region's average house price in January 2022.
As the graph shows, it’s the regions using the highest property prices that have seen minimal price growth. In London, where property costs are probably the most expensive, prices fell by -1.6% in January 2022.
Similarly, house prices within the east of England fell in January by -0.2%, the very first drop since 2011. As well as in the East, prices edged up with a paltry 0.1%.
These three areas are also the priciest for buyers. The average house price working in london is lb472,230, while buyers in the East and East are spending lb288,494 and lb321,174 respectively.
How to snag a bargain
If you’re looking to buy a house in these areas, it could be worth acting now while costs are in a downturn.
Keep in your mind, however, that prices could continue to go down, to not take advantage of as much equity growth while you would elsewhere.
Before making making a deal on a house or flat, it’s worth carrying out a few simple checks to ensure you’re not overpaying.
Talk to the estate agent and discover:
Prices continue to grow in much of the UK
Despite prices dialling during the south and east of England, a lot of all of those other UK continues to determine property price increases.
In Northern Ireland, costs are up 5.5%, accompanied by 4.6% in Wales. The highest property price growth in England was observed in the East and West Midlands, at 4.4% and 4.0% respectively.
These rates exceed the present rate of inflation, whereas price growth in Scotland, and the north east and south west of England doesn’t.
You should also think about the context from the price changes. Prices may not have changed all that much, even in areas which have seen the greatest growth, when they started in a lower base.
The average property price in Northern Ireland is lb136,669 – so, even though prices have risen by 5.5%, that means a pounds-and-pence increase of just lb7,125.
Conversely, London property prices still remain high, but a comparatively small-sounding 1.6% price reduction means lb7,678.
Has Brexit affected the market?
Some consumers happen to be delay through the thought of going ahead with a house purchase in a stagnant market, new figures claim that it's not stagnant at all.
Despite a lot of what's being reported in the media – the uncertainty surrounding Brexit is putting people off making property transactions – it seems that individuals are buying houses at the same rate they were last year.
Indeed, according to HMRC's UK Property Transaction Statistics, non-adjusted residential transactions were around 0.9% higher in January 2022 when compared to previous year, topping 100,000.
Choose a good option to buy a home
While it's an important factor, property price alone shouldn't dictate where you decide to purchase a property.
For such a major life decision, you will want to know of the area's council tax rates, what the schools are like, how happy individuals that area are, and whether there's any change of life expectancy as compared to the rest of the country.
Handily, our area comparison tool let you know all this information – combining things like Ofsted ratings, Band D council tax rates and ONS data.
You compares any local authority in England with the national average, or compare two areas to one another.
