Halifax finds house sale slide worse in the south

In its latest property sales report, Halifax found that all regions saw a fall in sales in 2015, but there was a clear north-south divide, with sales falling more in the south.

Greater London, for example, saw the biggest decline, falling 14 per cent. Whereas the smallest fall was in the north west, which slumped by 3 per cent.

The figures, which are based on the latest Land Registry data, found 2015 in stark contrast to 2014 when nearly all towns (97 per cent) recorded a rise in sales.

Property Sales and % changes by region, 2014-2015

	Sales 2014*	Sales 2015*	% Change
North	28,171	27,050	-4%
Yorkshire and the Humber	51,545	48,297	-6%
North West	61,316	59,206	-3%
East Midlands	49,109	45,063	-8%
West Midlands	52,059	48,731	-6%
East Anglia	30,115	26,313	-13%
Wales	26,996	25,747	-5%
South West	67,960	62,503	-8%
South East	150,979	137,150	-9%
Greater London	80,531	69,435	-14%
England & Wales	598,908	549,639	-8%

Source: Land Registry, *January to August

 

Those areas which saw the biggest declines in activity did not necessarily see a drop off in house price rises, so although Greater London saw a decline in sales, average house prices increased by £55,095.

However, there were still marked differences in local markets, with pockets of higher and lower activity in all regions. In Yorkshire and the Humber for example, sales were down 6 per cent, but in Batley they were down 27 per cent, and in Pontefract they were up 20 per cent.

Craig McKinlay, mortgages director at Halifax, said: “While sales have declined in all regions, there is a clear north versus south pattern with sales falling the most in southern regions. An acute shortage of properties for sales has also added to the constraints on activity.

“Nonetheless, there remain substantial local variations in housing activity with a small number of towns recording significant increases. These towns are largely in the north and are where prices are relatively low.”

Salford and Pontefract recorded the biggest rises in home sales in 2015, seeing an increase of 23 per cent and 20 per cent retrospectively.

Ten Towns with the highest % increase in property sales, 2014 – 2015

Post town	Region	Sales % Change 2014-2015
Salford	North West	23%
Pontefract	Yorkshire and the Humber	20%
Halesowen	West Midlands	18%
Bridlington	Yorkshire and the Humber	18%
Poulton Le Fylde	North West	17%
Aberdare	Wales	16%
Barrow In Furness	North	16%
Penrith	North	14%
Bedworth	West Midlands	13%
Pontypridd	Wales	13%

Source: Land Registry, *January to August

All ten towns experiencing the biggest increases in sales were outside southern England.

Market Rasen in Lincolnshire saw the biggest fall in sales with a 30 per cent decline between the first eight months of 2014 and the same period in 2015.

Kensington and Chelsea was the worst performing London borough with a 28 per cent decline, followed closely by Hammersmith and Fulham.

Thirty London boroughs recorded a fall in sales with two experiencing an increase.

Towns with a fall in property sales, 2014 – 2015

Post town	Region	Sales % Change 2014-2015
Market Rasen	East Midlands	-30%
Uckfield	South East	-29%
Walton On Thames	South East	-28%
Esher	South East	-28%
Kensington & Chelsea	Greater London	-28%
Batley	Yorkshire and the Humber	-27%
Petersfield	South East	-27%
Hammersmith & Fulham	Greater London	-27%
Sutton in Ashfield	East Midlands	-27%
Westminster	Greater London	-26%

Source: Land Registry, *January to August

 

katherine.denham@ft.com