London house prices fall as demand for property surges in regional cities


London house prices fell for a fifth quarter in a row in September, whilst average annual UK house price growth remained steady at 2%.

Nationwide’s House Price Index showed that Yorkshire and Humberside saw the strongest growth in house prices, with prices rising 5.8% on the previous year.

The next best performing region was the East Midlands, where prices rose by 4.8% annually.

Chelsea London
Photo: George Rex

Price growth in northern England exceeded growth in the South for the sixth successive quarter. Overall prices in the North were up 4.1% year on year, compared to 0.3% in the South.

However, the North region – which stretches across Cumbria and areas near Newcastle – bucked the trend, reporting the weakest growth of all regions. House prices there declined by 1.7% on the previous year.

London also remains the hardest place to shift property in the country according to the latest PropCast, a report on buyer demand levels in the UK housing market.

9 out of 10 of the hardest postcodes in the country to shift property were in London. NW8, which stretches across Westminster and Marylebone, was the worst postcode to sell property in.

Manchester canal side
Photo: Ikkoskinen

WC2, SW1 and SW5 also made it into the list of top 5 hardest postcodes to sell a house.

The only non-London postcode to feature in the list was L2 in central Liverpool. However, L2 reported the highest year on year increase in buyer demand in the country at 35%.

9 out of the 10 hottest postcodes for buyer demand were in Birmingham, Bristol and Manchester.

Photo: velodenz

BS5 in Bristol and M32 in Stretford, Manchester are the easiest places to shift property in the country. They’re closely followed by BS3, which comprises the Bristol suburb of Bedminster, and S18 on the far outskirts of Sheffield.

SW10, which covers West Brompton and Chelsea, and WC2, which stretches across Westminster and parts of Camden, were the only two London postcodes to record growth in buyer demand over the last year.

Overall buyer demand in England and Wales has fallen by 4.8% year on year.

Photo: BS0u10e0

Commenting on the findings, PropCast’s founder Gavin Brazg said that market in Bristol and Birmingham was on fire.

‘Properties sell quicker and often after a bidding war as a result – as long as the initial asking price is set realistically.

‘Both areas have appeared in PropCast’s top ten sellers’ markets for a couple of months now, so I expect this trend to continue in the short-term.’


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