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City Markets Proving Resilient

06.07.23

Prime property markets across the UK are “softening” as interest rates climb, reports Abode2. Average top-end values across UK markets outside of London (broadly the top 5% to 10% of the market by value) slipped by -1.5% in the second quarter, leaving them -3.5% down year on year, yet still 12.1% up since the first lockdown in March 2020.

In a turnaround of the big pandemic property trend, house prices in regional urban locations are proving more resilient than rural areas – although leading agents Savills is at pains to point out that while the “move to the country” trend “may have slowed, it has not stalled”.

Over the past year, high-value housing markets in regional cities saw price falls averaging -1.4%, while village and rural house prices fell by much chunkier -3.7% and -3.9% respectively. That’s taken a slice off the significant gains seen through the pandemic years, but is more of an erosion than a reset so far.

The impact of the work-life balance reset has been most keenly felt in the suburban and commuter markets – typically home to families and highly leveraged upsizers – where buyers have increasingly prioritised proximity to stations with direct links into London. Easily-commutable areas within a 30 minute train journey of London, have experienced the most significant price falls over the past year, of -5.2% on average.

By contrast, prime markets furthest from London including the Midlands/North of England, Scotland and Wales – where mortgage affordability is least stretched – have outperformed with less downward pressure on prices.

New buyer registrations are down overall across the UK’s prime regional markets, reports Savills – but demand is “currently standing up well to pre-pandemic levels.” In June, the estate agency handled 17% more buyer registrations than in June 2019. The supply of home available to buy, meanwhile, has improved a bit, but remains 5% below the pre-pandemic level.

Abode Affiliates

  • Alleyne Real Estate
  • Blevins Franks
  • Coldwell Banker
  • Crane Resorts
  • Monaco Real Estates
  • RDO
  • St Francis Links
  • Unique Home Stays
  • Yoo
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  • Cornerstone Tax Advisors
  • Pedini London
  • Alexander James
  • Moore Stephen
  • Ibiza Transit Express
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  • Jumeirah
  • Wall Street Luxury
  • Heron Real Estate
  • Edenhurst
  • MG&AG
  • Gama Property
  • Touch Design Group
  • St Edward
  • Ultra Villa
  • Luxury Italian Living
  • Habitat First Group
  • BDO
  • 7Storeys
  • Worldwide Property
  • Dimora
  • Dominic McKenzie Architects
  • Harry Manning
  • Smart Living
  • Isle Blue
  • MAS Marbella
  • Millgate
  • Jersey Finance
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  • author-interiors
  • Wilkinson Beven
  • BoConcept
  • Ante Vrban
  • Deborah Garth
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  • Ra Shaw Designs
  • Caudwell Collection
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  • Tina Shone Group
  • Taplow riverside
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  • Rusk
  • Consilium Expert Group
  • Ben Krupinski Builder
  • Swoffers
  • Guernsey Relocation Services
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  • Yellow House Architects
  • Designer Touches
  • Zafiro
  • Nicole Murray
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  • Emerson Insinkerator
  • Forsters
  • https://www.cullenhomes.co.uk
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