Hometrack finds London house price decline is spreading to regional markets

July 9, 2019

The latest market insight from Hometrack has looked at how far the trend of London price declines has spread into regional markets.

The data shows that: –

  • House prices in London lead the rest of the market – after high growth between 2010 and 2015, a growing proportion of markets started to register price falls.
  • The same trend is spreading into Southern England. Over a third of homes are currently in markets with annual price falls, concentrated in higher-value markets. There are limited signs this trend is reaching the Midlands.
  • The coverage of falls may seem high, but the absolute level of price falls is low, akin to the froth coming off the market after a period of high house price growth as markets overshoot on the way up.
  • We expect the re-pricing process in regional markets to be more short-lived than in London. Sales volumes have fallen back since 2014 but once values re-align, we expect sales volumes to increase.

You can see the full report here and find comment below from London letting and estate agent, Benham and Reeves.

Director of Benham and Reeves, Marc von Grundherr, commented:

“London will always be the driving force of the UK property market but just as it leads the way when price growth is buoyant, the same can be said when price growth in the capital drops a gear. We are currently seeing this in the South East and other surrounding markets as those within arms reach of the capital often find market sentiment impacted by the same influences due to the property market ripple effect.

As a nation, we aren’t really accustomed to a prolonged period of price-based or transactional decline and so while current market conditions may seem ominous, they are actually far from it. While the cream of price growth may have to come off the top due to current market conditions, there remains a very nice pint of milk below it.

We are already starting to see a reversal in previous factors signalling a market decline and any tide of negative movement that has reached the surrounding markets will soon retreat back towards the capital and disperse against the rocks of London bricks and mortar.”

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Breaking News

UK Construction Sector Activity Remains Stagnant

Glenigan’s data shows construction sector performance is depressed in a tough socio-economic landscape The value of underlying (under £100 million) work starting on-site during the three months to the end of July declined 11% and fell 29% below last year’s levels. Residential construction starts fell sharply, declining 25% against the preceding three months and dropping…
Read More →
Estate Agent Talk

Seven fire safety myths every business should avoid

Fire safety is one of those responsibilities that often doesn’t receive the attention it deserves – until something goes wrong, that is. For many businesses, compliance has fallen into the trap of being a tick-box exercise that’s centred around annual inspections, manual training exercises, and having the right paperwork in place. And although these are…
Read More →
Breaking News

Suzy Lamplugh’s legacy underlines the need to always make lone-worker safety a priority

More than 40 years after estate agent Suzy Lamplugh disappeared while attending a work appointment, her legacy remains a powerful reminder that personal safety must be central to workplace practices. On 28 July 1986, 25-year-old Suzy Lamplugh left her London office for an appointment and never returned. Her disappearance led her parents, Diana and Paul…
Read More →
Breaking News

Prime London sellers return to market

The latest analysis from Beham and Reeves has found that the number of homes listed for sale at £2m or above across Prime Central London increased during the second quarter of 2026, although performance continues to vary considerably between the capital’s most prestigious neighbourhoods.   Benham and Reeves analysed current Prime Central London property listings…
Read More →
Estate Agent Talk

What to know when buying land

The closure of UK Land & Farms (UKLAF) has left a significant gap in the UK’s specialist land market with buyers and sellers now forced to adapt after 18 years of relying on UKLAF as the cornerstone of the industry. As interest in land continues to grow, the company says the closure also serves as…
Read More →
Letting Agent Talk

Tenant demand strong, landlord supply shrinking

New RICS data shows tenant demand at its strongest in over a year – while landlord supply keeps shrinking. That’s not bad luck. It’s a trust problem, and it’s fixable. “These numbers should be good news for landlords. Demand is the strongest it’s been in over a year. Instead, they are deciding to head for…
Read More →