Sharp dip in values sees increase in flats sold as developers look to clear inventory
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The latest figures from the Land Registry suggest that developers may have started to discount prices in order to clear the massive number of unsold flats in the Brentford area.
After only 20 flats were sold in the previous quarter this number more than doubled in the three months to June with 47 flats being reported as sold but at prices which were down 11.4% on the previous period. The average flat in TW8 cost £239,550 which is 19.2% lower than the level seen five years ago. This provides some evidence that developers have finally started to cut prices more aggressively in the hope that the massive backlog of unsold flats could be cleared.
Houses continue to fare much better than flats as they are unencumbered with a large amount of extra supply. Although the numbers of houses changing hands in Brentford remains small prices are broadly unchanged over the last five years.
The June data from Land Registry's flagship House Price Index shows an annual price decrease of -2.5 per cent which takes the average property value in England and Wales to £161,479. The monthly change from May to June is 0.0 per cent.
London is the only region in England and Wales to have experienced an increase in its average property value over the last 12 months with a movement of 0.8%. Over the same period property prices in the North East were down by 7.1%. This brings the average price in London to £339,480 compare to £161,479 in England and Wales as a whole.
Brentford Property Prices - April - June 2011
| Area | Semi-Det | Sales | Terraced | Sales | Flat/Mais | Sales | Total Averages | Total Sales |
|---|---|---|---|---|---|---|---|---|
| TW8 0 | 0 | 0 | 334375 | 4 | 249505 | 34 | 258439 | 38 |
| TW8 8 | 0 | 0 | 0 | 0 | 255522 | 9 | 255522 | 9 |
| TW8 9 | 347490 | 5 | 399666 | 3 | 119000 | 4 | 284371 | 12 |
| Total | 347490 | 5 | 362357 | 7 | 239550 | 47 | 263268 | 59 |
| Change in Quarter | -19.7% | 25.0% | 13.5% | 0.0% | -11.4% | 135.0% | -12.9% | 90.3% |
| Change in year | - | - | 3.0% | -30.0% | -8.5% | -20.3% | -4.3% | -14.5% |
| Change in 3 years | 9.3% | 66.7% | 2.7% | -12.5% | -22.7% | -16.1% | -16.5% | -11.9% |
| Change in 5 years | 1.2% | -37.5% | 0.3% | -73.1% | -19.2% | -14.5% | -17.7% | -33.7% |
Where do I live? Brentford TW8 postcodes are divided into three sectors, TW8 0xx, TW8 8xx and TW8 9xx. Broadly speaking, TW8 0xx covers areas east of Boston Manor Road, TW8 8xx goes west of Boston Manor Road, whilst TW8 9xx covers the areas to the north of the A4.
Source: Land Registry
August 16, 2011
