House prices in Q4 have gone into reverse since the third quarter of 2017. Could this be the start of a trend for 2018?
Land Registry House Price Index figures show that the average house price in the city was £361,075 at the end of December. The gap between the average property price for Brighton & Hove and England & Wales has decreased slightly to £117,493 (48%) - a drop of nearly £10,000 since the third quarter of 2017.
A one bed flat cost £258,278 whereas it was just £4 short of £260,000 during the July – September quarter and it has dropped 0.7% over the full year.
On the other hand studio flats [bedsits] maintained their 10% increase during the year and cost an average £178,290 in the last quarter.
A three bedroom house went up a marginally smaller percentage [7.2%] than a one bed flat [7.7%] over the year and cost £478,901 compared to £472,807 in the third quarter of 2017.
To purchase a one bed flat in the city during the fourth quarter of 2017 you would have needed a deposit of £64,570 and an income of £59,603. For the three bedroom house a deposit of £119,725 and an income of £110,516 would have been required assuming a 25% deposit and a mortgage of 3.25 times salary.
The cost of renting declined with a one bed flat costing £920 per month compared to £960 in the previous quarter and a decrease of 1.4% from a year ago. Renting a three bedroom house also declined by 0.7% on a year ago.
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