Asking prices for prime properties drop fastest since 2010

Although asking prices across the whole of the UK for all properties normally dip during the winter months, the rate of decline in the prime market has been more marked this year, revealing a belated but clear trend in this market – which until now has largely shrugged off three-plus years of recession.

Nigel Lewis, property analyst at PrimeLocation.com says:

“Prime properties usually rise in value much faster than the general market – over the past two years prime homes have risen by 5% while the overall market has stayed largely flat (+0.4%).

“But, over the past two months the gap between prime and other properties has narrowed. This is because the prime market has quietened while the ending of Stamp Duty relief for first time buyers next month means many are racing to complete, creating a 0.3% surge in prices within the general market.”

In January, prime asking prices increased in only two regions – London and the North West – with only the North West prime market outperforming the general market.

Prime asking prices by region:

- London   
Average prime asking price (January 2012: £1,239,217
Monthly price change: 0.6%

- North West England
£363,099
0.1%

- East Midlands
£364,675
-0.4%

- Wales
£365,130
-0.4%

- South East England
£569,240
-0.5%

- East of England
£447,776
-0.6%

- West Midlands
£389,075
-0.6%

- North East England
£321,231
-0.6%

- South West England
£478,842
-0.8%

- Yorkshire and the Humber
£345,830
-1.0%

- Scotland
£387,700
-1.1%

- UK
£471,427
-0.4%