Index reveals regional house price divide

Ryan Bembridge

November 14, 2016

house middle class

The housing market is highly divided regionally with the East of England, South East and South West outstripping house price growth across the rest of England and Wales.

The Your Move England & Wales House Price Index for October found that the East of England has seen the highest annual growth (7%), followed by the South East (6.5%) and South West (5.5%).

The biggest change is in London, where house price growth has slowed to stand at 0.9% following a -0.2% monthly fall.

Annual house price growth rises for first time in eight months

Growth is also modest in Yorkshire and the Humber (0.7%), Wales (0.8%) and the North East (1.0%).

Richard Sexton, director of e.surv chartered surveyors, said: “In some ways despite a slowdown, the housing market, like the economy, has remained surprisingly resilient since the vote for Brexit.

“The variety of fortunes in different areas, however, shows the challenge the government faces as it prepares its Housing Policy White Paper, expected this month.

“Despite lower transactions, homeownership remains a key aspiration for most in the UK, and there’s no sign of a generalised, significant fall in prices that makes that easier to achieve.”

In the whole of England and Wales prices rose by 0.4% in October, or £1,045, to reach £294,351.

Adrian Gill, director of Your Move and Reeds Rains estate agents, said: “There’s been a general cooling in transaction numbers and buyer appetite in the housing market, which means we’re still seeing huge differences in the price growth across different regions.

“What hasn’t changed is an underlying picture of strong demand and inadequate supply. More and more young adults are living with their parents, but there’s no sign they are less ambitious to get their own place.

“As the government looks again at housing, it will be a tall order to come up with something that meets the needs of people right across the country.”

regional-house-price-index

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