Britain’s boom towns revealed as homeowners in the North rake in £7,000 while Londoners suffer brutal £3,200 plunge

HOME sellers are being urged to slash their prices ahead of the September rush in the property market. New figures released today reveal disappointing growth in house prices, while sales are also down this summer. Some regions have seen house prices slump while others are experiencing a boom Credit: Getty House price growth has slowed to just 1.3%, down from 1.7% a year ago, according to Zoopla. Meanwhile the number of house sales agreed is 9% lower than last year’s levels. Sign up for the Money newsletter Thank you! September is when sales usually start picking up, so Zoopla is encouraging sellers to get their pricing right now. Some regions of the UK have seen dramatic decreases in their average house prices. The typical London home has dropped £3,270 in value in the last year. Property experts have blamed high property values which are dragging more buyers into paying stamp duty, as well as the spike in mortgage rates limiting the amount people can afford to borrow. Homes in the South East have also dropped in value by around £1,480 on average. But other regions, including the North West and Northern Ireland, have seen property prices booming. Most read in Money The typical home in Northern Ireland has gained £9,610 in value, while in the North West prices are up by £7,100. Overall across the UK, the average home has gained £3,400 in value and now sits at £272,800. Experts say increasing mortgage rates and political uncertainty have discouraged buyers this year. Mortgage lenders have been hiking their rates in the few couple of weeks, with the average two-year fixed rate now at 5.62%, according to Moneyfacts. Five-year fixes are currently at 5.66%. Since January, rate rises have added roughly £125 a month, or £1,500 a year, to mortgage repayments for a typical UK home. Almost three-quarters of local areas are reporting fewer house sales over the past three months than the same time a year ago. Harrow in particular has been flagged as a market under pressure, with homes there taking 65% longer to sell than a year ago. Bath and Oxford have also seen lower sales. On the flipside, Warrington, Hull and Dundee are currently housing market hotspots. They’ll all seen increases in sales agreed and price growth in the last year. What should you do if you’re selling? What you do next will depend on whether you’re in a rush to move house or not Credit: Getty If you’re not in a major rush to move, you might want to hang tight for now. Richard Donnell, executive director at Zoopla, says: “For anyone who doesn’t need to move, it’s entirely reasonable to wait and see how things settle.” Mortgage rates are still high right now and there are no real cons to holding off for most sellers. But if you do need to move soon, such as if you’ve got an offer on a new place or you need to downsize to cut costs, you should act quickly. Zoopla says the share of homes cutting their asking price by 5% or more peaks in September. If your home is still sitting at its Spring asking price in October, you’ll have likely missed the window to cut the price and make a sale. Mr Donnell says: “Our data shows September is when the market typically turns, and pricing to meet buyers now is what tends to get deals done, rather than waiting to see what autumn brings.” Comment now