The latest data from the Land Registry indicates a drop in property prices in Watford, a town where the average home now costs £390,000. This represents a 1.1% decrease from January to February alone, highlighting a continuation of a troubling trend for homeowners in the area. Over the past year, prices have fallen by 5.4%, resulting in a typical home losing £22,000 in value.

While Watford’s market experiences downturns, the broader East of England tells a different story. The region overall saw a 1.7% increase in property prices during the same period, contrasting sharply with Watford’s decline. The UK average also went up slightly by 0.4%, further underscoring the unique position of Watford within the national context.

A Detailed Look at Property Types in Watford

Property types in Watford have all faced varying degrees of price decreases:

• Detached houses: These saw the most significant drop, with prices falling 2% monthly and 6.5% over the past year to an average of £916,673.
• Semi-detached homes: Prices decreased by 1.4% from the previous month and 5.4% annually, bringing the average price to £524,839.
• Terraced houses: Experienced a monthly drop of 1.2% and an annual decline of 6.2%, with the average now at £414,134.
• Flats: Fared slightly better but still declined by 0.8% on a monthly basis and 4.5% annually, to an average price of £281,044.

Comparing Costs

The financial landscape for entering the housing market in Watford varies between first-time buyers and those who are moving from another property:

• First-time buyers: The average spending by newcomers to the property market was £346,000 in February, which is £19,000 less than the previous year, yet £38,000 more than five years ago in 2019.
• Former owner-occupiers: Typically spent £448,000 for a property in February, showing a significant 29.5% premium over what first-time buyers paid.

Watford Versus Neighbours

Despite the recent price falls, Watford homes still command a 15% premium over the average property price in the East of England, which stood at £339,000 in February. The most expensive homes in the region were found in St Albans, where the average property costs £589,000—considerably higher than in Watford and nearly three times the average price in Great Yarmouth, the region’s least expensive area.