The UK housing market, particularly in London, has experienced significant fluctuations over the past year, according to recent analysis by Pinerock Finance on data released by the Land Registry. The average residential house price in London for January was £515,000, a decrease of 2.28% from the previous month's average of £527,000. Compared to the high of £540,000 in September, the current price represents a decrease of 4.9%. However, this is still an increase of 2.9% from the average price of £500,000 12 months ago.
Looking at the changes in average values for different property types between December and January, detached homes saw an increase from £950,000 to £1,065,000, while semi-detached homes saw a modest increase from £635,000 to £665,000. In contrast, terraced homes saw a decrease from £590,000 to £550,000, and flats experienced the largest decrease, dropping from £420,000 to £375,000.
Across England and Wales, the average residential house price in January was £275,275, a decrease of 1.69% from December's average of £280,000. Compared to the high of £290,000 in September, the current price represents a decrease of 5.3%.
When looking at specific areas in London, Enfield saw the largest increase in average house price, jumping from £435,500 in December to £591,000 in January, a change of 35.71%.
In comparison, Orpington experienced the largest decrease, dropping from £533,000 in December to £416,250 in January, a decrease of 21.90% and a significant difference from the high of £570,000 in October.
Croydon also saw a decrease, with the average residential house price in January being £300,000, a decrease of 23.27% from December's average of £391,000 and a significant difference from the high of £418,000 in September.
Sutton saw no change in average house price from December, remaining at £425,000 in January, but experienced a decrease from the high of £507,500 in October.
Finally, Bromley saw a decrease from December's average of £450,000 to £399,500 in January, a change of -11.22% and a significant difference from the high of £545,000 in September.
Overall, the picture for the UK property market remains one of falling prices, as rising interest rates and the cost of living crisis continue to hit the pound in the consumer's pocket, making potential buyers hesitant to enter into property negotiations. However, with the belief that interest rates are nearing the end of their climb, the outlook for the next few months appears to be slightly more optimistic. It's important to keep an eye on the market and stay informed as these fluctuations can greatly impact the housing market and your personal financial situation.