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

Estate Agent Talk

Hertfordshire emerges as strongest performing London commuter county

New research from UK Property Development reveals that while London property prices fell by more than -3% in the past year, prices in some of the capital’s surrounding counties have enjoyed positive growth, none more so than the premium commuter county of Hertfordshire.   In the past year, London’s average house price has fallen by…
Read More →
Estate Agent Talk

Second homes losing appeal among the rich

New Survey Reveals Ongoing Maintenance Is the Biggest Barrier to Second Home Ownership   62% say upkeep and hassle would stop them from buying a second home, even if money were no object   A new survey conducted by luxury co-ownership platform Equity Residences has revealed that the practical realities of owning a second home…
Read More →
Letting Agent Talk

How to build a property portfolio with buy-to-let mortgages

One of the reasons property is such a popular asset choice for investors is that you don’t need to invest all the money yourself; you can leverage funds from the bank. Here’s a very simplistic example of how borrowing via a buy-to-let (BTL) mortgage allows you to multiply your returns versus owning a property all-cash:…
Read More →
Home and Living

2026’s Fastest-Growing Bathroom Trend Is the Wet Room

“Wet rooms have become one of the standout bathroom upgrades of 2026, moving from luxury extra to everyday renovation choice as more homeowners prioritise space, style and easy cleaning. The momentum is only building as spa‑style bathrooms stay in demand.” “Wet rooms used to be a niche request,” says Ant Langston, Marketing Manager at Heat…
Read More →
Home and Living

Homebuyers could cut energy bills by £400 a year

As the energy price cap keeps rising, the latest research from Yopa reveals that buying a new-build home could save homebuyers as much as £450 a year on their energy bills. With the energy price cap forecast to increase again over the coming year, many households are preparing for further pressure on their finances as…
Read More →
Breaking News

Zoopla House Price Index Reaction

The latest index from Zoopla shows that: – First-time buyers are targeting homes worth £10,000 more than a year ago, with average prices up 4.3% to £254,750 – nearly 3x the rate of UK house price growth There are 6% fewer first time buyers in the market than this time last year, but those that…
Read More →