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House prices in the north-east rise as London sees a fall

The north-east of England is seeing an increase in house prices while the previously market-leading Kensington and Chelsea has seen a sharp decrease.

London Property Prices

The north-east of England is seeing an increase in house prices while the previously market-leading Kensington and Chelsea has seen a sharp decrease.

According to property listings website Rightmove, house prices in the north-east increased by 2.1% over the month of July, to reach £147,251 – the largest increase in value of any region in the UK. Conversely, the London borough of Kensington and Chelsea saw the average asking price for homes in the area fall by 7.2%, bringing the value of the average home to £2.29m.


The south-east, the south-west and the West Midlands also saw declines over the course of July. Whilst these figures indicate a change in the market, Rightmove’s monthly figures are usually seen as being a volatile indicator for the market, with annual figures much more reliable in providing an overview of the market as it stands.


Over the course of the past year, London achieved the highest increases in value with a 7.8% rise, whilst Wales saw the greatest decrease, as house prices fell on average by 1.7%. The average asking price in England and Wales also saw an increase over the course of July, reaching a new record high of £249,542.


The news comes as Rightmove also warned of a sharp decline in the number of properties that are being put up for sale in the UK property market.
According to the company, “The number of properties coming to market is running at a weekly rate 10.6% below the same period in 2014. The biggest drop-off in fresh supply is in the typical first-time buyer sector with two bedrooms or fewer. The shortage of suitable property for sale highlights the need for an urgent and marked increase in the overall housing stock to help keep pace with the growth in household formation.”


The competition between first time buyers and buy-to-let property purchasers is being attributed as being a major cause for this shortage, as investors capitalise on the growing demand for rental properties in the UK market.

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