House prices dropped by 2.8% – more than the average for the South West – in South Hams in December, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 6.2% over the last year.

The average South Hams house price in December was £421,741, Land Registry figures show – a 2.8% decrease on November.

Over the month, the picture was different to that across the South West, where prices decreased 1.8%, and South Hams was lower than the 0.4% drop for the UK as a whole.

Over the last year, the average sale price of property in South Hams rose by £25,000 – putting the area 28th among the South West’s 29 local authorities with price data for annual growth.

The highest annual growth in the region was in Torridge, where property prices increased on average by 17%, to £338,000. At the other end of the scale, properties in West Devon gained 3.7% in value, giving an average price of £327,000.

The average UK house price was £294,000 in December 2022, which was £26,000 higher than 12 months earlier.

It meant prices increased by 9.8% annually in December, slowing from 10.6% annual growth in November, according to the Office for National Statistics.

First steps on the property ladder

First-time buyers in South Hams spent an average of £336,000 on their property – £22,000 more than a year ago, and £91,000 more than in December 2017.

By comparison, former owner-occupiers paid £471,000 on average in December – 40.1% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest fall in property prices South Hams in December – they dropped 2.9% in price, to £326,675 on average. But over the last year, prices rose by 7.1%.

Among other types of property:

How do property prices in South Hams compare?

Buyers paid 27.6% more than the average price in the South West (£331,000) in December for a property in South Hams. Across the South West, property prices are high compared to those across the UK, where the average cost £294,000.

The most expensive properties in the South West were in Cotswold – £504,000 on average, and 1.2 times as much as more than in South Hams. Cotswold properties cost 2.2 times as much as homes in Plymouth (£229,000 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 December

Annual growth to December

Highest and lowest annual growth in the South West