House prices dropped by 2.1 per cent in Watford in December, new figures show.

The drop contributes to the longer-term trend, which has seen property prices in the area suffer a 0.6 per cent annual decline – the worst in the East of England.

The average Watford house price in December was £358,270, Land Registry figures show – a 2.1 per cent decrease on November.

Over the month, the picture was worse than that across the East of England, where prices increased 0.4 per cent, and Watford underperformed compared to the 0.8 per cent rise for the UK as a whole.

Over the last year, the average sale price of property in Watford fell by £2,300 – putting the area bottom among the East of England’s 45 local authorities with price data for annual growth.

The best annual growth in the region was in South Norfolk, where property prices increased on average by 21.1 per cent, to £337,000.

Winners and Losers

Owners of flats fared worst in Watford in December – they dropped 2.5 per cent in price, to £256,711 on average. Over the last year, prices dropped by 3 per cent.

Among other types of property:

Detached: down 1.5 per cent monthly; up 3.7 per cent annually; £882,898 average

Semi-detached: down 1.9 per cent monthly; up 1.1 per cent annually; £482,349 average

Terraced: down 1.9 per cent monthly; down 0.5 per cent annually; £379,810 average

First steps on the property ladder

First-time buyers in Watford spent an average of £316,000 on their property – £3,900 less than a year ago, and £3,200 less than in December 2016.

By comparison, former owner-occupiers paid £415,000 on average in December – 31.3 per cent more than first-time buyers.

How do property prices in Watford compare?

Buyers paid 5.5 per cent more than the average price in the East of England (£340,000) in December for a property in Watford. Across the East of England, property prices are higher than those across the UK, where the average cost £275,000.

The most expensive properties in the East of England were in St Albans – £577,000 on average, and 1.6 times as much as more than in Watford. St Albans properties cost 2.9 times as much as homes in Great Yarmouth (£202,000 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

Watford: £358,270

The East of England: £339,502

UK: £274,712

Annual change to December

Watford: -0.6 per cent

The East of England: +11.7 per cent

UK: +10.8 per cent

Best and worst annual growth in the East of England

South Norfolk: +21.1 per cent

Watford: -0.6 per cent