Capital appreciation still positive in some UK housing markets

The housing market in the UK may be challenging but some areas are bucking the trend. 

A study by PropTech operator The Valpal Network* has analysed sales valuations in properties across the UK between April and May this year finding the some regions saw rises, not falls. 

It found valuations in Central London rose 2.4 per cent - the best performing region in Britain - with rises also in the South East (1.9 pier cent over the month), the Home Counties (1.8 per cent) and the West Midlands (0.41 per cent). 

In terms of falls TVPN found Outer London values fell from £663,706 in April to £639,200 in May - down 3.8 per cent - while the South West dropped from £418,920 to £405,011 - some 3.4 per cent lower.

Sales values also dipped in the East Midlands, the North West and in the North East according to TVPN, which provides services to 800 estate agents and letting agency brands across the UK. 

“The reality is [that prices] were extremely inflated and unsustainable following the pandemic in some regions. Any decreases in price are expected but we are still up on pre-pandemic levels. Our data further underlines that, despite widespread concerns of a house market price crash, many regions are seeing sales values rise month on month” explains Craig Vile, the director of The ValPal Network.

"That should serve as a reminder to anyone working in the property sector that there is still much to be optimistic about. There is still a huge amount of demand across the market and those who are working in the most effective and efficient way, and reacting quickest to leads, will have the most success. Speed to lead is key. Agents would be wise to maintain their marketing spend and nurture every lead they can get hold of.

“They’d also benefit from re-engaging with their database to ensure that, when the time is right for the seller, they are the pick of the bunch when it comes to listing. It’s also really important that agents change their approach to suit the current market. People are taking more touch points before they make a decision. They need extra reassurance so they’ll be reliant on the trust and expertise of an agent to complete their move.”  

* The ValPal Network is a product of Angels Media, publisher of Property Investor Today and other industry titles. *