House prices drop by up to £315,000 after disastrous mini-Budget

House prices drop by up to £315,000 after disastrous mini-Budget

10:50 AM, 12th January 2023, About A year ago

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The worst hit area after the disastrous mini-Budget saw its house values being slashed by up to £315,000, research reveals.

The House Buyer Bureau has analysed the market to find which ones have suffered the biggest price drops since September.

That’s when then Chancellor, Kwasi Kwarteng, announced his and Liz Truss’s mini-Budget which sent a fragile UK economy into turmoil.

Amidst the chaos that followed the statement, inflation grew, interest rates increased and many high street mortgage providers pulled their products from the market.

These issues also led to the housing market stalling after a lengthy period of remarkable growth.

‘Property values are heading back down to earth.’

Chris Hodgkinson, the managing director of House Buyer Bureau, said: “We’ve seen house prices pushed to record highs during the pandemic and with the market now cooling, it’s no surprise that property values are heading back down to earth.

“Overall, this return to reality has been a steady one but when analysing the market at a more granular level, there are certainly some areas where property values have really fallen through the floor in the wake of September’s mini-Budget.

“While we don’t anticipate this rot to set in across the entirety of the market, those currently pondering a move are advised to sell their home quickly if they wish to secure anywhere close to the pandemic highs of the last two years.”

Rate of house price growth has started to slide

The firm’s research reveals that several house price indices, from the Land Registry to Nationwide and Halifax, have shown that the rate of house price growth has started to slide.

However, regional house price analysis by House Buyer Bureau has revealed where the market has really started to drop off when looking at the change in average house price at postcode level.

In the GU25 postcode district of Runnymede, Surrey, the average asking price has plummeted by -£315,368, falling from roughly £1.9m in September to £1.6m today.

And in the SO42 district of Hampshire’s New Forest, the average asking price has fallen from just over £1m to £781,257, a drop of -£289,605.

In Worcester’s WR6 postcode prices have fallen

Meanwhile, in Worcester’s WR6 postcode prices have fallen by -£143,804, from £572,478 down to £428,674.

While Colchester’s CO8 district, prices have fallen from £607,429 to £466,333, a decline of -£141,096, and in Surrey’s KT24 postcode district, prices have dropped by -£135,092, from £1.1m to £969,638.

Significant price drops have also been recorded in Somerset’s BS28 (-£128,074), London’s SW3 (-£121,049) and WC2 (-£117,796), RG25 in Hampshire (-£116,234), and IV25 in the Scottish Highlands (-£104,861).

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