British homeowners lose £300 billion since January
- Average home value down £44 per day so far this year -
26th Sept 2008
New figures released today show that the average value of homes in Britain has been falling by £43.84 every day since the beginning of the year, wiping a staggering £300 billion (£1.25 billion per day) in value day of f the housing market since January 1st, according to Zoopla.co.uk.
As the property market continues to battle against the fallout from the global credit crunch, the figures show that property values in England have fallen most, down £11,343 since the beginning of the year or £46.49 per day on average, with values in Wales dropping by an average of £10,742 or £44.02 per day since January. Scottish property prices have fared slightly better losing 'only' £4,928 or £20.20 per day on average over the same period.
Zoopla.co.uk, the UK's leading house prices website, which provides free current value estimates for every UK home, has released the results of its research showing the most/least affected areas of the country by analysing the year to date value changes in every area of Britain.
Berkshire has been the hardest hit county in England so far in 2008, with the average home recording a daily loss of £75.51, or a weekly value drop of £528.57. Dorset has also suffered from the recent slump with average values down £64.58 per day or £452.06 per week since the start of the year.
Hardest hit areas in England
| Area | Value change since Jan 08 (£) | Average daily loss(£) |
|---|---|---|
| Berkshire | -£18,425 | -£75.51 |
| Dorset | -£15,758 | -£64.58 |
| London | -£15,492 | -£63.49 |
| Buckinghamshire | -£14,738 | -£60.40 |
| Gloucestershire | -£14,553 | -£59.64 |
Source: Zoopla.co.uk
The worst performing county in Wales, Merioneth has seen £20,193 wiped off of the average house price since the beginning of the year, or a daily drop of £82.76 - nearly double the national average. The Mid Wales county of Brecknockshire has also experienced a significant fall of £15,871, or £65.05 daily in average home values.
Hardest hit areas in Wales
| Area | Value change since Jan 08 (£) | Average daily loss(£) |
|---|---|---|
| Merioneth | -£20,193 | -£82.76 |
| Brecknockshire | -£15,871 | -£65.05 |
| Anglesey | -£12,446 | -£51.01 |
| Radnorshire | -£12,101 | -£49.59 |
| Pembrokeshire | -£11,457 | -£46.95 |
Source: Zoopla.co.uk
In Scotland, despite a relatively low average fall across the country compared to England and Wales, the counties of Berwickshire and East Lothian have been hit the hardest, with daily depreciation on the average home coming in at £76.77 and £64.77 respectively.
Hardest hit areas in Scotland
| Area | Value change since Jan 08 (£) | Average daily loss(£) |
|---|---|---|
| Berwickshire | -£18,732 | -£76.77 |
| East Lothian | -£15,804 | -£64.77 |
| Peeblesshire | -£15,012 | -£61.52 |
| Perthshire | -£14,586 | -£59.78 |
| Clackmannanshire | -£14,276 | -£58.51 |
Source: Zoopla.co.uk
Amongst the different types of properties, detached houses in England have suffered the most, losing £71.68 per day on average over the past 8 months (£17,489) whilst flats in Wales have been the biggest percentage losers, down 9.23% or an average of £14,209 since January.
Value change by property type since Jan 1st 2008
| Property type | England | Scotland | Wales |
|---|---|---|---|
| Detached | -£17,489 | -£6,565 | -£16,401 |
| Semi | -£10,613 | £791 | -£8,856 |
| Terraced | -£9,912 | -£8,886 | -£9,282 |
| Flats | -£4,559 | -£6,659 | -£14,209 |
Source: Zoopla.co.uk
However, the Zoopla.co.uk analysis also reveals pockets of Britain where values have held steady since earlier this year, either down only marginally or in a handful of cases actually seeing a rise in values. Most notably, Peterhead in Aberdeenshire has seen house prices increase by 1.22 per cent since January, whilst Banstead in Surrey has also seen an increase of 0.82 per cent over the same period.
Best performing towns in Britain
| Area | Value change since Jan 08 (£) | Average daily loss(£) |
|---|---|---|
| Peterhead, Aberdeenshire | £1,591 | 1.22% |
| Banstead, Surrey | £3,152 | 0.82% |
| Windsor, Berkshire | £1,497 | 0.40% |
| Aberdeen, Aberdeenshire | £374 | 0.21% |
| Godalming, Surrey | £322 | 0.08% |
| Buckingham, Buckinghamshire | -£280 | -0.01% |
| Redhill, Surrey | -£1,068 | -0.39% |
| Broxbourne, Hertfordshire | -£1,207 | -0.43% |
| Teddington, Middlesex | -£2,022 | -0.44% |
| Bargoed, Glamorgan | -£608 | -0.72% |
Source: Zoopla.co.uk
Alex Chesterman, CEO of Zoopla.co.uk, commented:
"It is clear from our latest figures that the recent drop in home values has not reversed course in recent weeks and whilst in some areas the fall is accelerating we do see some bright spots where the drop in values appears to be slowing. With every part of the country performing differently, Zoopla.co.uk provides the ultimate resource for anyone interested in house prices by allowing users to track the value of any individual home - theirs or anyone else's - along with local information and market trends."
- Ends -
For further information, please contact Tim Vooght at pr@zoopla.co.uk or on 020 3872 5615.
Notes to Editor
Zoopla Awards
- Winner: 'UK's Most Promising Internet Company 2008' (First Tuesday)
- Nominated: 'Socially Powered Site of the Year' (.net Magazine)
What is Zoopla
Zoopla is a revolutionary online publishing service and community website providing information and tools to give users an advantage in the UK residential property market. Our aim is to create a transparent marketplace and we believe that information should be free and easily accessible to everyone.
How did it start? In early 2007, following the success of bringing DVD rental to the internet with LOVEFiLM.com, Zoopla founders Alex Chesterman and Simon Kain realised that the internet had yet to deliver meaningful change to the UK property market. It became clear that consumers lacked essential tools and information to help them understand home values, view similar properties, learn about past transactions...
...and then we thought:
- Why not offer users a tool to get access to FREE, instant value estimates on their homes or anyone else's?
- Why not let buyers make offers on ANY home, instead of just the 4 per cent of homes currently on the market 'for sale'?
- Why not let owners find out if there is any market interest in their homes without having to list them 'for sale'?
- Why not let agents and sellers market their 'for sale' listings FREE by providing them with easy-to-use tools?
- Why not let anyone ask/answer questions and share their knowledge about any homes or neighbourhoods?
- Why not put current value estimates, sold prices, homes for sale and local information all together in one place?
So, we have started by providing FREE value estimates and sold prices on homes, allowing sellers and agents to list homes for sale FREE, and letting all users edit information and upload photos. We have also launched some unique features, like TemptMe™ and AskMe™ which allow users to gain an insight into the market and discover information they won't find anywhere else.
By making TemptMe™ offers, buyers can try to entice owners to consider selling. Owners also benefit from this unique feature by being able to see what level of interest there is in their home without actually having to list it for sale. The AskMe™ community feature allows anyone to find out more about any home or neighbourhood that they are interested in by posting questions for those in the know to answer.
Zoopla value estimates are calculated using a proprietary algorithm (secret formula) that we have developed by analysing millions of data points relating to property sales and home characteristics throughout the UK. The algorithm works by comparing relationships between home prices, economic trends and property characteristics in given geographic areas. Our estimates are constantly refined by our team of analysts, using the most recent data available and a variety of statistical methodologies, in order to provide the most current information on any home.
Zoopla Limited is a privately held company, backed by leading international venture capital firm Atlas Venture.