Property prices are continuing to grow in most places in the UK, according to report by Zoopla.
House prices are on average 4.1% higher around the UK than a year ago.
Where in the UK are homes increasing the most? This blog post explains.
What is the House Price Index?
The House Price Index is an analysis of the UK property market. It provides price growth statistics for the UK; the countries, regions and major cities. A number of mortgage providers and estate agents compile these types of reports.
Are property prices increasing?
On average, house prices have increased 4.1% over the last twelve months. This varies regionally, with a peak of 7.4% seen in Oldham, Greater Manchester.
Specific areas around the country have witnessed falling house prices in the last year. Many of these areas are the more expensive London boroughs, caused by changing social and economic conditions.
Where are house prices rising the most?
According to the Zoopla report, areas in the North West and Wales are recording the strongest house price growth in the UK.
These areas are gaining more 6% annual sales price growth.
The areas with the highest growth consist of affordable, value for money properties and an ease commute to urban centres.
Homeowners in these areas can expect to see at least £10,000 added to the home’s sale price since February 2022.
The areas where prices have risen by the largest amounts are Oldham (+7.4%), Rochdale (+7.3%), Wigan (+7.1%) and Calderdale (+6.9%)
The most substantial growth in monetary value, with homeowners in the Vale of Glamorgan at +£17,360.
Are house prices falling anywhere?
The areas with notable house price falls are few and far between – and many are affluent London boroughs.
Kensington and Chelsea is the only place where the average price is greater than £1 million. Houses are selling for £6,220 less than this time last year.
The City of Westminster has an average price of £962,000 with an annual drop of £12,170.
What are the predictions for house prices in 2023?
Myron Jobson, senior personal finance analyst at interactive investor, said: “Property values may indeed fall in very stretched areas, for other areas, and for other areas, prices may not change very much – if at all.”
Halifax recorded their weakest rate of annual growth in nearly three and a half years in March 2023, but “overall these latest figures continue to suggest relative stability in the housing market at the start of 2023 and align with many other recent industry surveys and data,” says Kim Kainnaird, director at Halifax Mortgages.
“This has been characterised by a partial recovery in activity and transactions, especially when compared to the the significant drops seen at the end of last year, with the latest Bank of England data showing mortgage approvals rising for the first time in six months.”
This is largely because mortgage rates have begun to ease.
Touchstone Education founder Paul Smith said: “Property prices are rising year-on-year, except for a small number of areas in London and Scotland. Property prices have increased consistently and at a strong rate for many years, and as the pressures on mortgages decrease this is only going to get stronger in future.”
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