South Kesteven house prices dropped in June

House prices dropped by 3.7% in South Kesteven in June, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 11.4% over the last year.

The average South Kesteven house price in June was £262,250, Land Registry figures show – a 3.7% decrease on May.

Over the month, the picture was different to that across the East Midlands, where prices increased 1.7%, and South Kesteven was lower than the 1% rise for the UK as a whole.

Over the last year, the average sale price of property in South Kesteven rose by £27,000 – putting the area 22nd among the East Midlands’s 35 local authorities with price data for annual growth.

The highest annual growth in the region was in High Peak, where property prices increased on average by 17%, to £262,000. At the other end of the scale, properties in Rutland gained 5% in value, giving an average price of £376,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

First steps on the property ladder

First-time buyers in South Kesteven spent an average of £217,000 on their property – £22,000 more than a year ago, and £49,000 more than in June 2017.

By comparison, former owner-occupiers paid £292,000 on average in June – 34.6% more than first-time buyers.

Property types

Owners of detached houses saw the biggest fall in property prices South Kesteven in June – they dropped 4.2% in price, to £371,837 on average. But over the last year, prices rose by 12.1%.

Among other types of property:

Semi-detached: down 3.5% monthly; up 12.1% annually; £238,814 averageTerraced: down 3.2% monthly; up 10.6% annually; £191,750 averageFlats: down 3.3% monthly; up 6.3% annually; £121,456 average

How do property prices in South Kesteven compare?

Buyers paid 6.6% more than the average price in the East Midlands (£246,000) in June for a property in South Kesteven. Across the East Midlands, property prices are higher than those across the UK, where the average cost £286,000.

The most expensive properties in the East Midlands were in Rutland – £376,000 on average, and 1.4 times as much as more than in South Kesteven. Rutland properties cost 2.2 times as much as homes in Bolsover (£172,000 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 June

South Kesteven: £262,250The East Midlands:£245,911UK: £286,397

Annual growth to June

South Kesteven: +11.4%The East Midlands: +9.3%UK: +7.8%

Highest and lowest annual growth in the East Midlands

High Peak: +17%Rutland: +5%