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House prices fall for first time in two years

Kirsty Elleray
14/ 5/2008

HOUSE prices in Stockport have fallen for the first time in two years, according to official Land Registry figures.

In May 2006 the average house price was £157,749, which was a drop from April 2006 at £158, 094.

And now in March 2008 the average price stands at £172,440, which is a fall of £1,051, from February 2008 at £173, 491.

Ian Tonge, an estate agent based in High Lane, which has offices all over Stockport, says the drop is partly down to the credit crunch and lack of confidence in the market.

Mr Tonge said: "We have found the last few months has seen a considerable drop in Stockport. It is the climate that we are living in all over the UK, the country as a whole has taken a five to 10 percent decrease. Part of the problem is the credit crunch and the lack of confidence in the market. The top end of the market has seen a major drop. People are just sitting back and seeing how far the market will drop. Quite a few people don’t have to move, it just suits them to move, and if the market is bad they are not going to jump into it. A lot of people are selling up, moving into rented accommodation and waiting for a further drop."

The average price of a detached house in the Stockport district is now £345,825, a semi-detached is £185,773, a terraced is £125,088 and a maisonette/flat is £144, 707, with the overall average house price at £172,440.

The Land Registry figures also show there has been a dramatic fall in house sales volumes since July 2007.

But despite this month’s fall, house prices have risen from March 2007 at £165, 548 to March 2008, £177, 440, which is an annual change of 4.2 percent.

Official figures in a study by GMB, Britain’s General Union, show that the average house price of £172, 440 in Stockport is 5.3 times the average earnings for full time workers in the area.

This is well above the long-term ratio of house prices being between four and five times average earnings over the last 30 years.

If house prices in Stockport were to revert to just five times average earnings in the region, the average house price would drop by £10, 245 to £162, 195.

A borough price breakdown is available in the Stockport Express.