House price growth across northern England has started to lose momentum, although Yorkshire and the Humber and the North West remain Britain’s strongest-performing regions, according to e.surv.
The average property price across Great Britain reached £329,500 in July, representing annual growth of 1.7%.
Yorkshire and the Humber recorded the strongest annual increase at 4%, followed by the North West at 3.6%.
However, comparing price changes during the latest three months with the average quarterly growth achieved over the past year indicates that momentum is slowing across both regions.
GROWTH BECOMES MORE MEASURED
A similar pattern is emerging across other parts of northern England, the Midlands and Wales, where prices continue to rise but more slowly than earlier in the year.
E.surv’s analysis suggests the regional gap is narrowing because the strongest markets are cooling, rather than weaker areas experiencing a significant acceleration.
Higher borrowing costs and continued affordability pressures are contributing to the slowdown.
NARROWING GAP
Rob Owens (main picture, inset), Head of Research at e.surv, says: “Momentum is easing in the regions that have led the market this year.
“Yorkshire and the Humber and the North West remain the strongest-performing regions, underlining the ongoing appeal of more affordable markets outside the South East.
“Recent growth is now running below the pace seen over the past 12 months, so the gap is narrowing from the top rather than because weaker markets are catching up.
“That is happening against a backdrop of higher borrowing costs and affordability pressures, and the same pattern is visible across northern England, the Midlands and Wales, as well as in several larger cities.
“The latest data shows house prices are still rising across these areas, but the pace is becoming more measured than earlier in the year.
“Looking closer at cities, this easing of momentum is present across Sheffield, Liverpool, Birmingham, Newcastle and Bristol, and is less pronounced in Leeds and Manchester.
“Overall, northern England remains Britain’s house price growth leader, but momentum is now easing at the top of the market.”
