Movers and shakers: The geographical lottery of house values
With a difficult year behind us, new research by eMoov has uncovered the areas of the UK where house prices have been affected the worst.
No matter who you are, it’s pretty clear that 2016 wasn’t the greatest year for the property industry. Despite exhibiting a relatively strong performance, the market – and by proxy, consumer confidence – was on edge thanks to the effects of stamp duty rises, the Brexit referendum and over-inflated prices.
In 2017, progressively more homeowners (and potential homeowners) have become increasingly wary of the market’s stability. With the imminent triggering of Article 50 in the coming weeks, many consumers are waiting to see whether prices will be negatively affected and if they are, should we buy any house at all in the coming year?
However, whether you were a winner or loser over the past 12 months as a homeowner seems to be highly dependent on where you live. And new data from online property portal eMoov has revealed the areas that suffered the biggest losses in the UK.
In England, the worst performance surprisingly came from Cambridge. Known for its educational establishments, history and close proximity to the capital, homeowners found themselves losing 5.12% in value over the last year. Many industry experts believe this could be a direct result of the expanding London bubble – falsely lulling potential homeowners to believe that price rises would continue.
The majority of London itself saw its average values increase by over 7%, but owners in Fulham and Hammersmith must have a bitter taste in their mouth after learning that their boroughs were the only two to actually lose value, at -2.10%.
While Wales’ market began to show signs of life towards the end of the year, it was too late for those who own in Ceredignion, who lost 3.49% off the value of their homes.
Interestingly, it was Scotland who performed worst of all, with two cities featuring in the top three worst positions for the whole of the UK. Those who had purchased in Aberdeen at the beginning of the year have seen a shocking loss of -9.81% in just 12 months, closely followed by Inverclyde at -7.63%.
Property experts believe several factors have contributed to the downfall for those who live north of the border:
- Aberdeen itself has taken a huge hit in terms of job losses and investment thanks to the plunging value of oil since the financial crisis and increased levels of unemployment due to cutbacks in the North Sea oil industry.
- Scotland’s majority wish to be a part of the EU was destroyed thanks to the Brexit referendum, the fallout of which has recently led to calls for a second vote of independence from the UK – further affecting consumer confidence.
- While areas such as Glasgow and Edinburgh have continued to flourish thanks to tourism, many who are looking to buy in areas such as Aberdeen are waiting for the prices to bottom out before considering investing.
There is hope for the Scottish east coast, however, as investment in wind farms and other renewable sources of energy continue to grow, leading to renewed hopes that the dependence on oil to float the local economy may be coming to an end.
Need to sell your home as soon as possible? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.