Author Danny Luke, Business Manager at Quick Move Now
Figures released yesterday by the Office for National Statistics show house price inflation slowing across the UK. What it also highlights is the massive regional variation in house price changes. This variation has a huge impact on individual house sellers, for whom the UK-wide figures often quoted in the media mean nothing.
Overall, house price statistics are massively swayed by what happens in London and the south-east. For instance, even if prices increase 5.9% in London, what difference does that make to a home owner looking to sell a terraced house in Preston? The answer is nothing, as house prices are actually falling there…
As one of the UK’s largest property investors, we are constantly buying and selling properties all over the UK and we see these variations played out on the ground every day. We regularly hear that a house would be worth £50,000 more if it was in the next town.
The reality is you can’t move a house, so you have to work with the market you are in, and not concern yourself with what is happening in London or, for that matter, in the next town.
The unfortunate reality is that the number of houses selling is still very low, so the main concern for most sellers should be finding a proceedable buyer, and only then worry about what they can actually sell for.
I would have a lot more confidence in the trends highlighted by the various house price statistics if house sale volumes were back at historic levels.
In the meantime, they need to be taken with a pinch of salt and sellers and buyers need to focus on what is happening on the ground only in their local area.