Shropshire Star

Shropshire house prices fall from record high

House prices fell in Shropshire from a record high in September, the first month-on-month decrease in more than a year, according to figures released today.

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Figures also revealed that over the last decade the county has had one of the slowest growths for house prices in the UK.

A fall of 0.2 per cent took the average UK property price for September to £188,374, edging down from the all-time peak of £189,306 recorded in August.

The monthly price fall follows 16 months of increases and ends the run of property prices across the country, hitting fresh highs over the summer.

Nationwide Building Society revealed that year-on-year house price growth slowed to 9.4 per cent in September from 11 per cent in August. Year-on-year price growth had previously been hitting double digits since April.

Despite the slowing pace of house price growth, every region recorded year-on-year house price gains, from 21 per cent in London to 4.3 per cent in the north of England.

In Shropshire prices rose four per cent to an average of £183,508 over the last three months – a slight slowdown from the five per cent rise in the previous quarter of the year.

The county also has one of the lowest rates of house price growth in the country over the last 10 years, up just eight per cent since 2004 – the same as in neighbouring North and West Wales. In Worcestershire it has risen 18 per cent, while in part of the South East it has risen 20 to 30 per cent and in some parts of London prices have doubled. London house prices reached a new high in September, at £401,072 on average, and now stand at 31 per cent above their 2007 pre-financial crisis peak in the capital.

Robert Gardner, Nationwide's chief economist, said "the outlook remains uncertain" for the rest of the year.

He said there had been "tentative signs" from estate agents that demand from potential buyers may be starting to cool.

But, on the other hand, low interest rates, which are keeping borrowing cheap, and the strong labour market "suggest that underlying demand is likely to remain robust", he said.

On a quarterly basis, prices across the UK lifted by 1.5 per cent in the three months to September compared with the previous three months.

Mike Nettleton, sales director at Nock Deighton, in Bridgnorth, said: "It's not something to worry too much about. We've spoken to our colleagues in London and the market has also slowed there.

"We've been trading here since 1831 and we've seen booms and we've seen declines. This particular trend is certainly not something to worry about."

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