The continued concerns over the flailing economy have had an effect on house prices. A new survey published by Lloyds TSB Mortgages shows that property hotspots are at their lowest since 2008, when the financial crisis was at its worse.
Only 202 towns or 40% were considered property sales hotspots. In 2011, there were 630,389 home sales, compared with 654,481 in 2010, a fall of four per cent, according to the survey.
The survey also shows that the 59% of home sales were in the north compared with 41% in the south. The 2011 figures are a reversal of the trend from 2010 when southern towns accounted for 53% of the sales hotspots.
Tower Hamlets had the largest fall of house sales in 2011, falling by 22 per cent, followed by Potters Bar which recorded a 20% fall, and Penzance in Cornwall recorded a 19% fall in house sales.
Suren Thiru, Lloyds TSB Housing Economist, said:
“The overall level of housing market activity across England and Wales has weakened over the past year, reflecting the concerns over the outlook for the UK economy. Additionally, consumers are experiencing difficulties in raising the necessary deposit, which is preventing many potential home buyers from entering the market.”
“Whilst a number of towns in the north have seen a significant rise in home sales, these increases have been from a historically low base. Generally, property prices in the north continue to be weaker than in the south.”