ABERDEEN has seen over half of its homes fall in value, by an average of £25,700, as its status as the oil capital of Europe diminishes, according to analysis.
New analysis from Zoopla has revealed that one million homes in the UK have seen their value increase by 50 per cent or more since the pandemic five years ago, an average increase of £117,400.
Eight in ten homes have increased by more than five per cent with these homeowners sitting on average gains of £60,800.
However, Aberdeen's housing market has faced significant challenges, with more than half of its homes falling in value.
The housing property website estimates that half of Aberdeen's homes have fallen by an average of £25,700, a decline largely attributed to the decreased size of the oil and gas industry in the North Sea.
London has also faced significant challenges over the last five years, with 13 per cent of homes experiencing a value decrease of 5 per cent or more, an average value fall of £34,000.
Local authorities with the highest percentage of homes decreasing in value by five per cent or more over five years
- Boston – 4% of homes – Average change: £-28,000
- Welwyn Hatfield – 8% – £-26,400
- Westminster – 53% – £-137,700
- Sunderland – 4% – £-10,500
- Liverpool – 3% – £-25,700
- Aberdeen City – 56% – £-25,700
- Reading – 14% – £-27,300
- Cotswold – 4% – £-86,200
- Gwynedd – 3% – £-50,700
- Birmingham – 5% – £-23,700
- Harrogate – 4% – £-52,700
The trend reflects challenges facing these areas, including high prices that impact first-time buyer demand, elevated mortgage costs, and tax changes that have discouraged landlords from buying property.
Richard Donnell, executive director at Zoopla, said: “Our latest analysis clearly shows there is no single housing market and that house price trends vary widely across the UK.
"One million UK homes have seen their value increase by 50 per cent or more over the last five years as higher mortgage rates and rising rents encourage home buyers to seek out value for money in localised markets across northern England and Wales..
“Home value growth has been weaker across southern England and particularly in London. A combination of high prices and higher mortgage rates have reduced buying power, and this has been reflected in flat prices and modest price falls in inner London.
“The UK currently has the most homes for sale in seven years. It's critically important serious sellers fully understand the local market dynamics impacting the value of their home and seek the advice of agents on where to set the asking price for their home in order to achieve a sale."
Nathan Emerson, CEO of Propertymark, responded to the report, adding: “This rise in house prices is positive for homeowners, especially when considering the current condition of the economy.
“For people already on the property ladder, this will increase equity, provide greater refinancing opportunities, and may make it easier for those who wish to move into a bigger, more expensive home to do so.
“However, for first-time buyers, this presents the potential for further restrictions such as increased costs, affordability challenges, and greater competition from other buyers, which could drive up prices even further.
“Even with mortgage providers introducing more competitive mortgage deals, help for first-time buyers is needed as house prices continue to rise. This has pushed the average deposit needed to over £70,000, which is likely to be unrealistic for many people.”
