According to Savills’ latest research, prime regional markets are proving more resilient to the credit crunch than their mainstream and central London counterparts with average values falling by just 0.5% in the first quarter of this year. Year-on-year growth now stands at 4.9%.

On a regional basis, the biggest falls were recorded in the Midlands and the North where values fell by 2.1% in the quarter pushing average annual growth into negative figures at -3.3%. Scotland continues to fare most strongly although growth for the quarter was marginal at 0.3%.

Lucian Cook, director for Savills research, said: “ In the price ranges were access to mortgage finance and the impact of the credit crunch is less of an issue values have held up. The +£4m market proved the most robust recording 2.2% growth with no change recorded for the +£2m market.”

Greatest pressure has been placed on the sub £500,000 market where pressures on access to mortgage finance have had the greatest impact. In the South East, uncertainty amongst city buyers in the £1m to £2m market has contributed to price falls of 0.8% across the country in this range.