Confused about property prices

By the Beresfords Marketing Team - 10th November 2011

Beresfords have for some time questioned the validity of 'national' statistics, especially those relating to an average property price for the UK.

The simple fact is that property isn't like some commodity sold in a supermarket. Every property and every location is different so it isn't a national market, regional market or even County market. In fact it can even vary within a town itself. We have offices in areas that are only a couple of miles apart but the number of buyers registering and properties coming into the market and selling can vary enormously week to week and month to month.

National figures are even more questionable in the current economic climate where there are wide regional variations. London and the Home Counties such as Essex tend to emerge from recession quicker than other parts of the UK and frequent reference is made to the 'North/South divide' but any modest increases in these areas can be more than offset by falls in other regions and result in a national average price that is dropping.

In addition, some figures are based on Land Registry sale prices. However, these relate to completed property transaction that is, where people have physically bought a property. When you take into account that the sale price could well have been agreed two or three months earlier and then add the fact that the Land Registry figures only come out quarterly, it will include properties that were sold six or seven months ago. It's hardly reflective of market conditions now.

We think in the main, people realise that the best method of establishing what the local property market is doing is to just look at what’s happening around them in their neighbourhood, that's by far the best indicator. If properties are coming onto the market and the boards are changing from 'for sale' to 'sold' in a few weeks or as in some cases in this area, a few of days, then you know you are in an active market - regardless of what the national newspapers tell you!

If you are thinking of selling or letting a property contact your local office for a FREE, no obligation market valuation.