It is now almost three years since the housing market in England peaked in late 2007, and Zoopla.co.uk recently studied how each area has fared since the downturn began and it is clear that some locations have weathered the storm far better than others. The research shows that average property values in England are now 8.7% below the peak levels recorded three years ago at £225,045, representing an average loss in value of £21,303 over the past three years, but they are also up by 11.2% over the past eighteen months from the lows reached back in March 2009.

Whilst the London property market has proven far more resilient than most with average house prices now only 3.5% below their September 2007 level, the area where house prices have bounced back strongest is in Bath & NE Somerset where property values are now only 1.5% below where they were at three years ago. At the other end of the scale, the country’s biggest loser is Lincolnshire where property prices still remain 11.2% below their peak levels, despite having risen by more than 8% in the past eighteen months from their March 2009 lows.

Oxfordshire came in third place in terms of the most resilient housing markets with home values now only 4.7% below where they were three years ago, followed closely by Warwickshire (down 4.78%) and Hertfordshire (down 4.9%) since September 2007. However, Nottinghamshire (down 11%), South Yorkshire (down 10.7%), Worcestershire (down 10.5%) and the West Midlands (down 10.4%) have not fared much better than Lincolnshire.

Nicholas Leeming, Commercial Director of Zoopla.co.uk said: “In terms of both current house prices and market performance over the past 3 years, there is a clear north-south divide. The manufacturing base of the Midlands was severely hit by the recession and heavy job losses have taken their toll on the region’s economy. As the economy strengthens the housing market will likely perform best in those areas least sensitive to the upcoming public sector cuts and the property divide looks set to get even wider.”