Solihull house prices dropped more than West Midlands average in September

House prices dropped by 0.7% – more than the average for West Midlands – in Solihull 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 12.4% over the last year.

The average Solihull house price in September was £343,761, Land Registry figures show – a 0.7% decrease on August.

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

Over the last year, the average sale price of property in Solihull rose by £38,000 – putting the area 21st 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. At the other end of the scale, properties in Sandwell gained 9.6% in value, giving an average price of £196,000.

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 Solihull spent an average of £270,000 on their property – £30,000 more than a year ago, and £50,000 more than in September 2017.

By comparison, former owner-occupiers paid £398,000 on average in September – 47% more than first-time buyers.

Property types

Owners of flats saw the biggest fall in property prices Solihull in September – they dropped 1.3% in price, to £183,524 on average. But over the last year, prices rose by 9.2%.

Among other types of property:

Detached: down 0.7% monthly; up 12.6% annually; £598,169 averageSemi-detached: down 0.5% monthly; up 13.6% annually; £353,455 averageTerraced: down 0.7% monthly; up 13% annually; £262,649 average

How do property prices in Solihull compare?

Buyers paid 35.4% more than the average price in West Midlands (£254,000) in September for a property in Solihull. Across West Midlands, property prices are high 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 1.2 times as much as more than in Solihull. 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

Solihull: £343,761West Midlands:£253,864UK: £294,559

Annual growth to September

Solihull: +12.4%West Midlands: +10.1%UK: +9.5%

Highest and lowest annual growth in West Midlands

Stafford: +18%Sandwell: +9.6%