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Written by rosalind renshaw

UK property values are at their lowest for eight months, it has been claimed.

Property portal Zoopla has a valuation tool which aims to track the value of every property in the UK, using Land Registry data, to which it applies its own formula.

This week, Zoopla said the tool showed that home values had fallen every month since last July, and that the total decline was 11% – and 18% down from peak.

The Zoopla methodology shows that property values hit a five-year low in February 2009. Property values rose steadily during the rest of 2009 and throughout the first half of 2010 before falling.

Property prices in England have fallen by an average of £26,240 (11.06%) since last July, while in Scotland they are down on average by £21,489 (12.37%) and in Wales by £17,205 (10.73%).

The average home values now stand at £211,003 in England, £152,106 in Scotland and £143,182 in Wales.

Across Britain, average house prices are now 18.01% (£45,594) below their peak, with the average at £201,911 compared with £247,505 in October 2007.

Regionally, the North-East has been hardest hit over the past few months, down 14.12% since last July with average local house prices now at £146,242.

London has proved most resilient, down only 7.59% over the same period to an average of £378,295 today.

Property values in the North-East now stand at 24.39% below their October 2007 peak, a massive drop of £47,173, compared to London where prices now are only 8.36% below the peak levels, having fallen £34,527.

While the Zoopla feature is similar to an Automated Valuation Model and is regularly used by estate agents and members of the public, it is not known how reliable it is.

Zoopla describes the formula that it applies to Land Registry data as ‘secret’ and its average property value appears to be far higher than the actual average selling price of around £162,000 recorded by the Land Registry itself.

Comments

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    Brit1234: Define "normal levels", please.

    YOUR definition. Quote FIGURES, not percentages.

    WHERE YOU want to buy: WHAT you want to buy: HOW MUCH you want to pay.

    Then we will debate the point further.

    I can't wait... ;0)

    • 24 March 2011 09:39 AM
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    Zoopla prices are always a joke. I am the first to cheer for house price falling to normal levels however I would rather see it in credible figures of Land registry, Halifax and Nationwide.

    • 23 March 2011 23:41 PM
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    As my name has been mentioned here, I'm posting to say I agree with everyone here that thinks online valuation models don't work, at all.

    Theres a bit more art to it than can be stuck into some spreadsheet or another, even a Zoopla one.

    • 23 March 2011 21:58 PM
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    Zooplas valuations are totally in-acurate................i rest my case

    • 23 March 2011 20:40 PM
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    We’ve all tried them but can anyone actually say they have had an accurate price from an on line tool? Just these sites with hidden agendas run by boffins who have no idea. Zoopla is desperate as falling so far behind rightmove they put such rubbish stories out.

    • 23 March 2011 12:16 PM
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    Sibley's... - Aha, mon brave!

    Three-and-a-half million smackers for the whole of Smoggyland?

    NOW WHO'S OVERVALUING?? ;0)

    • 23 March 2011 11:16 AM
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    £3.5 mill PeeBee; I presume that's to buy Middlesborough?

    • 23 March 2011 11:01 AM
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    "Regionally, the North-East has been hardest hit over the past few months, down 14.12% since last July with average local house prices now at £146,242."

    Okay - so I goes and does a quickie Zoopla online 'valuation' of a little place in the hard-hit North East. Currently on the market for an astonishingly sensible £3.5 million (already down from £3.9, so buy it TODAY...!), this place has nine bedrooms, seventy-two khazis (or there abouts...) and enough land to build an airfield. It's Grade I listed, and looks every bit the country retreat that 99% of the population would give a kidney for.

    Zoopla 'value estimate'...


    £ 433,151. 12.4% of the current Asking Price. Of course, that is the middle of a scale of possible values. Don't even ASK what the 'lower' end of the valuation scale was...

    And the 'Confidence Level' of this 'value' is medium/high - so it MUST be right!

    I'm going to see the vendor NOW. Wave that in front of him and chance my luck. After all, it is a valuation. Surely the Agents used the same?

    Mr Hendry - are YOU perchance providing Zoopla with their new valuation tools?

    • 23 March 2011 10:55 AM
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    James, Ive often said the very same thing.
    Why get in bed with a site that is potentialy damaging the property price of the very same home you are trying to market?
    .....i dont get it

    • 23 March 2011 10:44 AM
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    Zoopla's price statistics/valuation model is pointless, useless and way of base in almost every instance

    Why would any self respecting agent or seller want to list a house for sale on a site determined to represent the buyer by offering such wildy inaccurate valuation information?

    • 23 March 2011 09:51 AM
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    While it's nice to see such headlines, Zoopla is about as reliable as Rightmove and Acadametrics.

    'Zoopla describes the formula that it applies to Land Registry data as ‘secret’

    Oh yes, I bet you do.

    • 23 March 2011 09:31 AM
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