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Two thirds of homes saw value uptick in last year – Zoopla

  • 06/07/2023
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Two thirds of homes saw value uptick in last year – Zoopla
Around two in every three homes have grown in value by at least one per cent over the last year, but in the last six months this has fallen to around one in three, research has shown.

According to research from Zoopla, the average UK home has increased by £19 per day over the last 12 months, adding around £7,000 in value on average.

It continued that falling values were on the increase, with a quarter of homeowners experiencing a value loss of around £7,700, or around 2.6 per cent.

Zoopla said that this shows that the “impact of weaker demand is now affecting house prices”.

The company explained that since last year the “economic backdrop has becoming more challenging” impacting house value growth.

It pointed to tripling mortgage rates and cost of living pressures as dampeners on demand.

“That means the huge growth in house prices we saw over the pandemic years has now stalled and property prices are rising very slowly.

“With anticipated price corrections, we expect more homeowners to see either more limited gains or modest decreases in their home values over the coming months,” Zoopla explained.

Regional differences

Zoopla said that in Northern England, the Midlands and Wales, four in 10 homeowners saw the value of their homes grow since November 2022.

In Southern England, Scotland and Northern Ireland only a quarter of homes had increased in value, and in London, South East and Eastern regions, around one in five homes had grown in value.

The company explained that property values in the South were higher, so people would need bigger mortgages to buy them, and as mortgage rates were higher buyers were “wary” and demand as falling.

The top three areas seeing value increases since November were Halifax at 67 per cent, Wakefield and Derby at 65 per cent and Huddersfield at 59 per cent.

Zoopla said that smaller homes, like terraced houses, semi-detached homes and apartments, are keeping their values better than more expensive properties, but location was important.

“Home values are moving in different directions within different local contexts. The state of the local economy, facilities in the area and differences in the types of homes available will continue to influence home values,” it concluded.

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