House prices dropped by 2% in Test Valley in June, new figures show

The drop does not reverse the longer-term trend, which has seen property prices in the area grow by 0.4 per cent over the last year, compared to the UK increase of 1.7 per cent.

The average Test Valley price in June was £399,649 – a two per cent decrease from May.

This differs from the whole of the South East, where prices increased by 0.6 per cent, with houses across the whole of the region costing an average of £391,406.

Buyers still paid 2.1 per cent more than the average price in the South East in June for a property in the Test Valley.

Over the last year, the average sale price of property in the borough rose by £1,700 – putting the area 53rd among the South East’s 64 local authorities based on price data for annual growth.

Across the South East, property prices are high compared to those across the UK, where the average cost is £288,000.

Test Valley Borough Council's cabinet member for housing and environment, Cllr Nick Adams-King, said: “I welcome a fall in house prices, not only does it help those that are hoping to buy a home it also helps more generally as the required housing target set by the government for the council is influenced by the assessment of affordability of housing.  

“So, if housing becomes more affordable as wages increase and house prices plateau or fall, then that helps the council meet its housing numbers in the longer term and ensures development of the right type of homes in the most acceptable locations.”

First-time buyers in the Test Valley area spent an average of £313,000 on their property – £2,900 more than a year ago, and £60,000 more than in June 2018.

By comparison, former owner-occupiers paid £458,500 on average in June – 46.4 per cent more than first-time buyers.

Owners of detached houses saw the biggest fall in property prices in the area in June – they dropped 2.3 per cent, to £643,316 on average. But over the last year, prices rose by 0.9 per cent.