A house price slump and regional property fluctuations could have a significant impact on relocating homeowners. It all depends where you live - and where you're moving to.
London property prices still going up
While prices in other areas of the UK are dropping off, the London property market continues to be fuelled by a shortage of homes and over-demand, and several large-scale developments, including the Olympic regeneration zone.
If you're relocating to London from somewhere else, expect to get far less for your money, while those leaving the capital should have plenty of equity to play with - according to SmartNewHomes.com, a 60% share of a London flat would secure a three-bedroom house in Yorkshire.
Slower market, slower relocation
Elsewhere, there are reports of homes taking longer to sell, and sellers forced to reduce their asking prices. UpMyStreet user, Frances in Weymouth, says: "Although I have dropped my asking price quite substantially I have not found the sellers of property that I am interested in are doing the same, so effectively nothing is moving in my area."
A slower market means that relocating could take longer than usual. You may be able to secure a competitive price on a property to buy, but sellers in future may hold off from putting their homes on the market. Similarly, if you're looking for a quick property sale, you may need to be more flexible on your asking price.
Examine markets at a local level
Buying and selling to relocate all depends on the local markets you're moving from and to. Gauge activity in both areas to get an idea of how flexible you'll need to be - check local house prices to see how much homes have actually sold for, look for 'for sale' and 'sold' signs in the area, and ask local residents and estate agents for their views. If the area you're relocating to has a similar level of activity, you can hope for a smoother relocation.
Regional hotspots buck downward trend
Some areas will outperform others this year - particularly in areas benefiting from lower than average prices and regeneration or transport improvements. Read our guide to property market hotspots to find out the areas in each region to watch.
How you could be affected:
› Renters
Top five most expensive counties, average house price
1. Surrey, £364,115
2. Hertfordshire, £319,091
3. Oxfordshire, £315,894
4. Berkshire, £315,693
5. Buckinghamshire, £313,644
Top five least expensive counties, average house price
1. Blaenau Gwent, £113,964
2. Merthyr Tydfil, £120,353
3. Western Isles, £124,067
4. West Dunbartonshire, £126,3327
5. North Lanarkshire, £135,614
Source: Halifax county house price survey, February 2008
See also
Mark (Cherwell), on 20/04/2008 at 22:39
Karen (Wokingham), on 31/03/2008 at 13:59
We are re-locating from Newcastle to Berkshire and as you can imagine, it's not been easy. Although we got a full asking price offer just a month after our house went on the market (May 2007), the buyer and 1 subsequent buyer pulled out due to financial reasons (Northern Rock had just started having problems). We've ended up part-exchanging for a new house as the market in the North East just stood still. This in itself has not been easy as we are renting in Berkshire until our new house is ready and still paying mortgage on the house up North. We are probably paying over the odds on the new build but hope that if we stay there for a few years we won't lose out. We picked probably the worst time in decades to move from the North to the South!
Kaz (Welwyn Hatfield), on 29/03/2008 at 22:48
Welwyn Garden City has slowed but plenty on the market are coming down
Homefinder UK (Wakefield), on 12/03/2008 at 09:34
Hmmm. As one of the directors of the country's leading firms of relocation agents I can say that our buyers who we represent are literally having a field day. Finally they are getting value for money when buying houses and they are the ones in the driving seat of the process. We are finding a significant increase in the amount of work that we are doing both in London and outside at the moment and whilst we are talking to Estate Agents who are moaning about the slow down in new properties being offered to the market, we are finding the exact opposite with increased numbers using our "sell your house for free" service. Perhaps it's just that the market was due a change in the way people buy and sell property...something we are offering and as a result couldn't be busier at the moment to be honest.
So are we finding that the slum is having an effect on our clients who are relocating...no not really in fact it's working in their favour.
Mark (Cherwell), on 11/03/2008 at 20:28
We are in the lucky position of having sold within 5 days of being on the market to a cash buyer, we are moving to Wiltshire where we intend to rent. The market appears to be stalling in the area we are looking at and when you get a stall, you will often see a fall, doesn't mater how small I hope to save some money.
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Sarah (Southampton), on 10/03/2008 at 20:29
We are relocating from Southampton to Gloucester. We have reduced our house price to encourage a sale, but have decided to rent for a while until we see what is happening with the property market in Gloucester. At the moment this suits us, giving us time to know the areas and saving money on outgoings (rent compared to mortgage), we only hope the house will sell soon!
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