West Country house prices withstand property slump

Permalink: West Country house prices withstand property slump
by Kay Murchie

A housing survey carried out by the Halifax Estate Agency has revealed that homeowners in the West Country are defying predictions of a property slump as prices have not suffered such a considerable decline as the remainder of the country.

The report established that prices in the South West fell by just 0.4% in the final quarter of 2007, compared with 0.8% for the remainder of the UK. Furthermore, the Halifax indicates that this area is well set to navigate a period of market uncertainty.

David Whitehead of the Halifax Estate Agency agreed the market in the South West was slowing but added that a number of towns in the region continue to experience above average house price growth. Over the last 12 months the average house price in St Austell rose by 26% while Torquay experienced double-digit growth at 23%.

The most expensive town in this area was Truro with average prices at £323,231. The most affordable area in the region is Plymouth at £175,709. Prices in Exeter increased 9% in 2007 the average now at £219,942.

On the whole, the figures show prices increased strongly in the first 6 months of 2007 before starting to fall slightly at the end of the year.

Andy Goundry of the National Association of Estate Agents (NAEA) concurred with the survey and commented that in Cornwall we haven’t been as adversely affected by house price falls as other parts of the country. Although we have seen a slowdown, there hasn’t been a major tumbling of prices.

In 2007, average earnings in the South West stood at £30,729 compared with an average property price of £211,404.

Construction in St Austell, such as the £75 million redevelopment of the town centre and the building of 52 flats at Sandy Hill, is helping to fuel interest in the area.