Around 70% of Britain’s housing market is now in recovery at local level despite national house price figures still showing a marginal decline according to latest research from Yopa.
Analysis of six months of price data suggests that while the overall market remains in a “reset” phase, the majority of local authority areas are now seeing values trend upwards after two years of higher mortgage rates and weaker demand.
Across Britain, the average house price currently stands at £272,618, having fallen by an average of 0.02% per month over the last six months.
This leaves the national picture slightly negative, reflecting the slowdown that followed the rapid growth seen during the pandemic housing boom.
MIXED REGIONAL PICTURE
However, the regional picture is more mixed. Six of the 11 major regions are still seeing prices drift down, with London showing the sharpest decline at an average of -0.58% per month.
In contrast, five regions have moved back into growth territory, led by the North East where prices are rising by an average of 0.49% per month.
At local authority level the market appears far more resilient. Of the 349 districts analysed, 241 are now recording positive monthly price growth, meaning 69.1% of the market is classed as being in recovery.
The strongest rebounds were recorded in South Ayrshire, East Cambridgeshire, Na h-Eileanan Siar, Northumberland and West Devon.
However some of the country’s most expensive locations continue to see the largest corrections, with Kensington & Chelsea, Camden, the City of Westminster and Hammersmith & Fulham among the areas showing the steepest monthly declines.
STABILISING MARKET
Verona Frankish (main picture), Chief Executive of Yopa, reckons that the figures show the market is stabilising after a period of rapid change.
She says: “While the national picture shows that house prices have edged down marginally in recent months, that only tells part of the story.
“When you look beneath the headline figures, the majority of Local Authority areas across Britain are now seeing prices move upwards again, signalling a clear return to growth in many parts of the market.
“After a difficult couple of years shaped by economic uncertainty and rapidly rising mortgage rates, conditions have undoubtedly been challenging… the fact that most Local Authorities are already in recovery demonstrates that the market is not in decline, but in transition.”
