Yorkshire is leading a Northern Powerhouse of property price growth. Yorkshire is the UK’s top-performing region for house price growth, according to the latest Home.co.uk research. Prices in Yorkshire are up 8.8 per cent year on year bringing the average house price to £220,099.
The North West has also seen rapid price growth of 7.4 per cent between September 2019 and September 2020, while the North East has rallied with a strong 4.9 per cent increase.
Analysis of price performance over the past month saw Yorkshire with 0.9 per cent growth, which is almost double the national average, while the North West saw 0.7 per cent and the North East 1.1 per cent.
Wales and the Midlands regions continue to show consistent moderate growth but it is a different story in the South and East. Home.co.uk say that the South West, South East, East and London are all indicating year-on-year price growth below the UK average of 3.8 per cent and are now plagued by oversupply of property for sale.
In Greater London where house prices have risen by 2.6 per cent year on year, supply is up by 71 per cent compared to September last year and in the East, the UK’s worst performing area for price growth with an annual rise of 1.5 per cent, supply is up by 34 per cent. By comparison, Yorkshire has seen a nine per cent increase in homes for sale.
Home.co.uk analysts say that given another month of near-record numbers of properties entering the south and east markets, a return to substantial price growth there will be significantly delayed. Home.co.uk director Doug Shephard says: “At best, we expect these regions to undergo a period of low growth extending into 2021. However, continued excessive supply vastly increases the likelihood of a price correction. The South West faltered this month and the next wobble will most likely be observed in London.”
He adds: “Both Yorkshire and the North West, as well as the North East and Scotland, are currently experiencing record prices and the highest growth rates since the financial crisis. It is quite remarkable that, after nearly a decade of price stagnation, the North East property market finally takes off post pandemic.
“Together these regions may presently be regarded as the northern powerhouse of the UK property market, and their performance is compensating for the lacklustre performance of London and adjacent region.”
Source: Yorkshire Post 15th September 2020