UK property values 'slip to lowest for eight months'

UK property values are at their lowest for eight months, it has been claimed.

Property portal Zoopla has a valuation tool which aims to track the value of every property in the UK, using Land Registry data, to which it applies its own formula.

This week, Zoopla said the tool showed that home values had fallen every month since last July, and that the total decline was 11% – and 18% down from peak.

The Zoopla methodology shows that property values hit a five-year low in February 2009. Property values rose steadily during the rest of 2009 and throughout the first half of 2010 before falling.

Property prices in England have fallen by an average of £26,240 (11.06%) since last July, while in Scotland they are down on average by £21,489 (12.37%) and in Wales by £17,205 (10.73%).

The average home values now stand at £211,003 in England, £152,106 in Scotland and £143,182 in Wales.

Across Britain, average house prices are now 18.01% (£45,594) below their peak, with the average at £201,911 compared with £247,505 in October 2007.

Regionally, the North-East has been hardest hit over the past few months, down 14.12% since last July with average local house prices now at £146,242.

London has proved most resilient, down only 7.59% over the same period to an average of £378,295 today.

Property values in the North-East now stand at 24.39% below their October 2007 peak, a massive drop of £47,173, compared to London where prices now are only 8.36% below the peak levels, having fallen £34,527.

While the Zoopla feature is similar to an Automated Valuation Model and is regularly used by estate agents and members of the public, it is not known how reliable it is.

Zoopla describes the formula that it applies to Land Registry data as ‘secret’ and its average property value appears to be far higher than the actual average selling price of around £162,000 recorded by the Land Registry itself.