10 Towns Where House Prices Will Bounce Back
Property websites recorded a surge of activity in the first few weeks of this year, estate agents had a busier January than previous months and Halifax even reported a small rise in house prices. Some experts were quick to point out that these rises came from record lows, and house prices are still expected to fall by 10 per cent this year. However, others suggest that this could be evidence of pent-up demand.
So which areas are attracting the most attention from would-be buyers? Here are the top 10 most searched for postcodes on Rightmove, the UK's largest property website, in the first two weeks of January.
It is worth remembering that Rightmove measures asking rather than sales prices. On that basis it puts the average UK house price at £213,570. Halifax, by comparison, measures sale prices and puts the average figure in January at £163,966.
1. BN3 - Hove
Potential buyers are desperate to pick up a property in the regency enclave of Hove, just down the road from Brighton on the Sussex coast, making it the most in-demand postcode in the UK. Property prices in Brighton & Hove climbed 1.2 per cent between December 2008 and January and increased 1.5 per cent in the last 12 months. The price of the average home is now £310,316, says Rightmove.
Bargain property:
Dresden House, Medina Villas, Hove, East Sussex, BN3. Four bedrooms, three reception rooms, Grade II listed. Price reduced from £1.6 million to £1.3 million (Srutt & Parker).
2. CR0 - Croydon
Croydon, in south London, was the second most searched for postcode on the Rightmove website. Buyers might be attracted to the promise of its fast rail connections to London or its popular trams. But despite the surge in interest from bargain hunters, prices in Croydon fell by 9.4 per cent in the last 12 months, and 1.2 per cent between December 2008 and last month. The average house price is now £259,790.
3. BN1 - Brighton
Brighton has a population of only 155,000 but it attracts over 8 million visitors each year, drawn by the fresh sea air and historic "laines". Property prices in Brighton & Hove climbed 1.2 per cent between December 2008 and January and increased 1.5 per cent in the last 12 months. The price of the average home is now £310,316.
Bargain property:
Varndean Road, Brighton, East Sussex, BN1. Four bedrooms and three reception rooms with seperate stable block and coach house. Price reduced from £1.75 million to £1.1 million (Winkworth).
4. N1 - Islington
Islington, north London, has bucked the trend for falling house prices across the rest of the country as property values climbed 13.4 per cent in the last 12 months. Between December 2008 and last month the average price rose another 2.2 per cent to £584,206.
Bargain property:
Grantbridge Street, London, N1. Two bedroom lower ground floor apartment with communal garden. Price has fallen £430,000 to £395,000 (Hamptons International)
5. M20 - Manchester
Central Manchester was the fifth most searched for postcode on the Rightmove website. Manchester has seen average prices fall 9 per cent in the last 12 months, from £156,344 in January 2008 to £142,314 last month. However, demand for properties in Manchester pushed prices up 2.2 per cent in the first month of this year.
6. CM2 - Chelmsford
Chelmsford, an historic market town in Essex, has seen a small rise in house prices recently. Between December 2008 and January 2009 prices rose 1.1 per cent. Chelmsford has good rail connections to London, with regular services to Liverpool Street station in the City, which could have largely protected the town from the sharp drop in prices seen elsewhere. Over the last 12 months property values have fallen only 1.3 per cent. The average price is now £320,540.
Bargain property:
Adstocks, Great Baddow, Essex, CM2. Six bedrooms, five reception rooms, double garage and workshop. Price £975,000 (Strutt & Parker)
7. NG5 - Nottingham
Nottingham, in the east Midlands, has been boosted by a number of regeneration projects over the years and has a large student population, but average prices have been hit by a glut of city-centre new build developments. Rightmove found that prices in Nottingham fell 14.1 per cent in the last year, and 7.2 per cent in the last month, standing at £135,581, compared to £157,916 in January 2008.
8. E14 - Docklands/Isle of Dogs
Property prices in the docklands area of east London, home of Canary Wharf, are expected to bounce back in the next year as demand for flats near the huge office complex on the Isle of Dogs remains high. House prices climbed 13.2 per cent in the last year and 2.4 per cent in the last month. The average price, according to Rightmove, is now £448,071, compared to £395,648 in January 2008.
9. SS0 - Southend-on-sea
Southend-on-sea, on the Essex coast, home of the world's longest leisure pier, at 1.34 miles, has seen prices fall 11.5 per cent in the last 12 months and 3.2 per cent between December 2008 and last month. The average house price has dropped from £227,701 in January 2008 to £201,485 last month.
10. LE3 - Leicester
Homeowners in Leicester have been stung by a 15.1 per cent fall in house prices over the last 12 months. Prices are still dropping, with a 4.1 per cent fall in the last month alone. The average house price in Leicester is now £150,687.
Bargain property:
Watkin Road, Leicester, LE3. One bedroom, first floor apartment situated in the Freemans Meadow Development, still under construction. Price reduced from £154,995 to £119,995 (Your Move)
Article Courtesy of James Charles @ The Times Online
