Commuter hotspot sees house prices plummet as 49% of properties fall in value
Britain’s property market is experiencing a recovery as house prices continue to grow, with many regions recording their biggest surge in months.
However, half of homes in St Albans, Hertfordshire, have seen their value drop since the start of the year, new research has revealed.
Figures show approximately 49 per cent of homes in the cathedral city fell in value.
This means more homes fell in value in St Albans than anywhere else in England.
Buyers have a rare opportunity to bag an affordable house in St Albans
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The commuter town has long been home to some of the most expensive homes in the East of England, attracting some of the country’s highest earners.
Despite being considered one of the least affordable places to live outside of the capital, experts believe the fall in house prices reflects higher mortgage rates limiting buyers’ affordability.
The rare drop in house prices means new buyers could bag themselves a good deal if they act fast.
Dumfries, in Scotland, was the only other area that saw additional homes lose value during the first half of 2024.
Meanwhile, Dorchester and Colchester saw 44 per cent of their properties fall by 0.6 per cent in value, equating to £2,000.
Half of the country’s 30 million homes increased in prices with properties up by £2,400 on average.
Some 10 million homes are estimated to have increased in value by £5,000 or more in the past six months.
Izabella Lubowiecka, a spokesperson for Zoopla, said: “Growing buyer confidence and a rising volume of transactions in the first half of 2024 are translating into firmer home values.”
As mortgage rates have climbed, many buyers have been priced out of the housing market forcing sellers to drop asking prices.
Data shows 54 per cent of homes lost £2,100 in value, bringing the average house price down to £142,800.
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House prices have dropped in other parts of the country
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Experts at Zoopla have also put the drop in prices down to the aftereffects of the pandemic, which have prompted many hybrid workers to flee bigger cities in search of bigger homes.
This so-called “race for space” has caused house prices to readjust to new market norms, according to the housing platform.
The following cities saw their average prices fall:
- Dumfries – value decrease of -1.7 per cent
- St Albans – value decrease of -1 per cent
- Colchester – value decrease of -0.6 per cent
- Dorchester – value decrease of -0.6 per cent
- Ipswich – value decrease of -0.6 per cent
- Milton Keynes – value decrease -0.5 per cent
- Exeter – value decrease of -0.5 per cent
- Harrogate – value decrease of -0.5 per cent
- Perth – value decrease of -0.1 per cent
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