New research conducted by eXp UK, the network of personal estate agents, has highlighted the fragmented nature of the property market.
According to the report, buyers can purchase more than two homes for the average house price in 5.1% of local authorities, while in the most expensive areas, the same budget won’t even buy them half a home.
The average house price is currently £294,329 and eXp UK reveals that this is enough money to buy two homes in 5.1% of local markets.
Nowhere does it buy you more than in Burnley, Lancashire. Here, the average local house price is £117,661 which means you could buy 2.5 homes with a budget equal to the national average price.
However, in 4% of local authority districts, the current average house price is not enough to buy even half a home.
In London’s Kensington & Chelsea, where the average house price currently stands at just under £1.3m, a budget of £294,329 gets you less than a quarter of a home and it’s a similar story in London’s other prime boroughs, including the City of London (0.30 homes), and the City of Westminster (0.32 homes).
The report advises buyers and sellers to understand their immediate market and consult with a good local agent for better knowledge.
Head of eXp UK, Adam Day, said: “I think there are two important take-aways from this research. The first is that the luck and fortune of buyers and sellers differs greatly depending on location.
“A first-time buyer with exactly the same budget in two different parts of the country will face varying levels of difficulty when it comes to the issue of property price affordability.
“The second vital take-away is an understanding that the overall health of the housing market is largely judged with very broad strokes.
“This is particularly important for both buyers and sellers when it comes to negotiating the market.
“When house prices are reportedly falling as is currently the case, an over ambitious buyer may find that their aggressive negotiation techniques fall on deaf ears, should they be house hunting in an area of the market that is still going from strength to strength.
“In contrast, some sellers may still be overpricing based on the fact the market, albeit cooling, is still in fairly fine form.
“However, if they happen to be selling in an area, such as Westminster, they will need to accept the fact their home has dropped in value by a significant sum versus the wider performance of the market.
“It’s all about gaining a good understanding of your immediate market and chatting to a good, local agent is the easiest and fastest way of getting hold of this knowledge.”
