Properties in the south have seen asking prices tumble by thousands of pounds over the past year to the dismay of homeowners, property portal Rightmove says.
Homeowners in London, the southwest, the southeast and the West Midlands have seen listing prices slide in the year to September.
The southwest has seen the biggest drop in asking prices as coastal properties fall out of favour with buyers.
Homes are now listed for an average of £382,531, a 1.3 per cent drop compared to a year ago as buyers return to major cities and holiday home hunters are deterred due to punitive 100 per cent second home council tax charges.
London has seen a 1.1 per cent fall in asking prices over the past year to £675,074 – an average fall of £7.425. The property market in the capital has seen a dramatic shift in property prices due to harsh wealth taxes, which have caused affluent buyers to flock overseas.
Homes in the southwest are now listed for £382,531 – a 1.3 per cent drop in a year
Plus, squeezed affordability of buyers means London homes are not as in demand, which has sparked a fall in listed values.
One London mews home in Marylebone has seen a fall from £4.5million to its current £2.25million in just 10 months.
Southeast homes are now listed for £479,982 which, although far above the UK average, is down 0.7 per cent on last September.
Homes in the West Midlands have also seen a drop in asking prices of just 0.1 per cent to £293,645.
While this is poor news for homeowners, it’s a welcome relief for buyers in the south who typically face higher house prices and squeezed affordability.
Colleen Babcock, property expert at Rightmove, says: ‘Competition amongst sellers to find a buyer is more heated in London and the south of England, while higher stamp duty rates have hit these regions harder, both contributing to lower asking prices compared to last year.
‘The result for buyers is improved affordability when combined with lower mortgage rates, and the higher rate of agreed sales compared to last year suggests many are taking advantage. However, it’s still much more expensive to purchase a home in London and the south of England compared to other areas of Great Britain, so affordability is still stretched despite the increase in purchasing power.’
The northwest has seen the greatest rise in asking prices as they have soared 3.2 per cent in the last year to £270,275, Rightmove says.
Scotland has also seen a strong rise of 2.6 per cent to £199,146.
Asking prices in Yorkshire and the Humber are £258,568 (2 per cent rise), £267,528 in Wales (0.9 per cent) and £291,578 in the East Midlands (0.9 per cent).
Northeast homes have risen by 0.5 per cent to £194,737 while the east of England has seen a small rise of just 0.2 per cent in the year to September to £291,578.
However, falling mortgage rates mean that all regions have seen a fall in mortgage payments compared to a year ago.
Across Britain the average monthly mortgage payment has fallen by £84 from £1,590 to £1,506 – which is a saving of £1,008 each year.
London has seen the biggest fall in mortgage costs – £181 – as homeowners must hand over £2,927 each month.
While the falling asking prices across the south are detrimental for sellers, they are beneficial for buyers and owners as this combined with dropping mortgage rates now mean these places have seen the biggest decrease in monthly payments.
The average two-year fixed mortgage rate has plummeted from 4.99 per cent at this time last year to 4.53 per cent now amid numerous cuts to the Bank of England base rate.
In the southeast, mortgage payment have plummeted by £120 each month to £2,073 – a saving of £1,440 over a year – while in the southwest owners now save £106 a month as they now shell out £1,662 to lenders, Rightmove says.
Scotland has seen the smallest fall in mortgage payments – just £23 – to £833 a month.
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