The estate agency comparison website GetAgent claims that some homes in the Uk are worth 44% less now than a decade ago.
GetAgent has discovered that some areas of Liverpool have seen the average house price fall by 44%, from £116,821 to £65,178, following analysis of house price data from government agencies for the period from the end of 2008, the beginning of the financial crisis, to the end of 2018.
While some areas of Bradford have seen falls of almost 40% from £125,514 to £76,034, in Hartlepool the average house price in some districts has fallen from £97,532 to £60,338 due to a 38% decline over the past decade.
GetAgent examined so-called Middle Layer Super Output Areas (MLSOAs) to compare the average house price change in these areas over the period since the financial crisis. The areas are analysed according to particular local criteria and each one is allocated a name and code identity.
The MLSOA data provides a more detailed picture of the market in these towns and cities than the headline house price data published by the Land Registry and government indices. The information highlights the areas that have suffered the least growth which would otherwise be obscured by the headline figures.
The research shows that the 023 area of Liverpool has seen the largest decrease in value, 5% greater than the 044 area of Bradford, which in turn is 1% more than the 005 district of Hartlepool. One area in County Durham, two in Middlesbrough and one in Sunderland all feature on the list as some of the worst areas to inhabit.
London and south-east property market
Unsurprisingly, the top 10 MLSOAs for house price growth are all in London, with Camden leading the way with a stupendous increase of nearly 400% over 10 years. Such growth has enabled the average house price in the area to increase from £308,080 to £1,509,051 over the last 10 years, in spite of recent price weakening.
Lambeth comes second with 323% growth followed by Kensington and Chelsea with 242%. Even Westminster borough, registering the smallest increase in house price growth in the top10, managed a not-to-be-sniffed-at increase of 180%.
Outside London, the top 10 MLSOAs for house price growth include Cambridge which has seen has seen the largest increase of 157% since late 2008, taking the average house price there from £167,620 to £430,291.
Winchester, in second place, has benefited from an increase of almost 150%, from £307,256 to £765,412. In third place, Coventry’s average house price has grown from £70,067 to £170,877, an increase of 144%.
UK property market
Colby Short, GetAgent founder and CEO has said that although his company tends to focus on headline statistics, the UK housing market consists of many thousands of micro-markets, so that a fall in one area could be a gain in another.
Short went on to say that using the more specific information creates a more realistic picture of property prices than the usual bland generalisations and shows how the market operates very differently from one area to another in towns and cities.
Commenting on the current property market, he sees London prices falling, while major cities in the Midlands and further north enjoy stronger price growth.
Nevertheless, reviewing the period since the financial crisis, Short can see a marked difference among the regions of the UK, with the capital boasting strong overall growth, while certain areas have suffered substantial falls in property values.