Have UK Property Prices Been Rising?

It seems that the subject uppermost in the minds of Brits is back in the news. No, not the weather. The other one. Yes, property prices.

Bearing in mind the awful state of the UK economy currently, can it be much of a surprise that property prices have fallen again?

I would like to contend (and as someone that has worked in the UK property market for a few years, I know a little about this) that the UK residential property market is massively influenced by movements in London. I find it difficult to believe that whatever the numbers show, anywhere but London has been rising in prices recently.

I know, I know, the numbers say differently…

Just before Christmas, a member of my family was looking for a property in the South West of England. The house they found was on the market for (as I recall) 275,000 pounds. Under great pressure from me, they made what was an ‘insulting’ offer. From there they negotiated upwards. Finally, they agreed a price at 235,000 pounds.

Does that sound like a strong market to you?