House prices plunge around London with Brighton, Crawley hit hardest
Patches of London’s ‘stockbroker belt’ suffered the most significant decline in house prices this year, as both the capital and the South East fell behind northern regions.
The West Sussex town of Crawley suffered an 8.9 per cent drop of £36,317, while High Wycombe saw a 7.4 per cent drop, with £34,994 wiped off house valuations, according to Lloyds Bank.
Meanwhile, Brighton, another popular town for London commuters, recorded a 4.8 per cent fall, with prices tumbling by £20,000.
House price growth divide
The figures reveal the divide in house price growth between areas located in and around London and the rest of the country.
Britain’s housing market has had a subdued year, after an increase in stamp duty in April, uncertainty caused by Budget speculation and ongoing elevated mortgage rates weighed on buyer sentiment.
Despite remaining the most expensive location in the UK, the London market has suffered in particular, with prices falling 2.4 per cent year on year to £547,000 according to the latest government data.
The capital has been hit by a combination of rising unaffordability and increased supply, with sellers struggling to strike deals while buyers are increasingly able to negotiate prices down.
Tax clampdowns on landlords and overseas buyers have also rocked the market, hitting the capital’s most expensive boroughs, including Kensington and Chelsea, which international buyers have typically favoured.
At the same time, the introduction of a ‘mansion tax’ in Labour’s November Budget is also expected to affect the upper end of the market.
The tax will see properties valued over £2m be slapped with a higher council tax charge from April 2028.
Amanda Bryden, head of mortgages at Lloyds, noted the South East “dominates the list of towns where the value of homes fell or grew most slowly in the last year”.
North boosts growth
Outside of London and the capital’s commuter belt, buyers were still pushing prices higher.
Plymouth and Stafford topped the list, reporting increases of 12.6 per cent and 12 per cent respectively.
Wigan, Wakefield, Liverpool and Hull also reported a rise in prices, while Woking, a Surrey commuter town, shrugged off its region’s lacklustre performance with prices up 8.1 per cent.
Bryden said: “If you’re open to exploring, you might find places where your money goes further.
“Northern regions and Scotland are still generally more affordable than the south of England.”
Valuations across the UK rose by an average of 3.7 per cent, to roughly £13,000.