Sandwell house prices dropped slightly in September

House prices dropped slightly, by 0.3%, in Sandwell in September, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 9.6% over the last year – though still the lowest in West Midlands.

The average Sandwell house price in September was £196,242, Land Registry figures show – a 0.3% decrease on August.

Over the month, the picture was similar to that across West Midlands, where prices decreased 0.3%, and Sandwell was lower than the UK as a whole, where prices did not change.

Over the last year, the average sale price of property in Sandwell rose by £17,000 – putting the area bottom among West Midlands’s 30 local authorities with price data for annual growth.

The highest annual growth in the region was in Stafford, where property prices increased on average by 18%, to £272,000.

An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic.

But typical property values stalled across the UK between August and September, which caused annual growth to slow.

Andy Sommerville, director at property data provider Search Acumen said the latest data is further evidence of "a turning tide for house prices".

The figures are yet to reflect the full impact of the mini-budget, announced towards the end of September, which sparked volatitility in the mortgage market and saw interest rates on new agreements soar.

Nicky Stevenson, managing director at estate agent group Fine and Country said: “Annual house price growth slowed in September against a backdrop of rising interest rates and shrinking disposable incomes."

“All eyes will now turn to Chancellor Jeremy Hunt’s autumn statement, which is expected to include both tax rises and spending cuts," he added.

First steps on the property ladder

First-time buyers in Sandwell spent an average of £179,000 on their property – £16,000 more than a year ago, and £50,000 more than in September 2017.

By comparison, former owner-occupiers paid £216,000 on average in September – 20.6% more than first-time buyers.

Property types

Owners of flats saw the biggest fall in property prices Sandwell in September – they dropped 1% in price, to £106,837 on average. But over the last year, prices rose by 5%.

Among other types of property:

Detached: down 0.4% monthly; up 9.1% annually; £320,556 averageSemi-detached: down 0.1% monthly; up 10.6% annually; £210,775 averageTerraced: down 0.4% monthly; up 9.9% annually; £177,039 average

How do property prices in Sandwell compare?

Buyers paid 22.7% less than the average price in West Midlands (£254,000) in September for a property in Sandwell. Across West Midlands, property prices are low compared to those across the UK, where the average cost £295,000.

The most expensive properties in West Midlands were in Stratford-on-Avon – £403,000 on average, and 2.1 times as much as more than in Sandwell. Stratford-on-Avon properties cost 2.8 times as much as homes in Stoke (£145,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in September

Sandwell: £196,242West Midlands:£253,864UK: £294,559

Annual growth to September

Sandwell: +9.6%West Midlands: +10.1%UK: +9.5%

Highest and lowest annual growth in West Midlands

Stafford: +18%Sandwell: +9.6%