The north-west of England is driving forward the increase in house prices in the UK, even though the national growth rate is at a five-year low according to recent data.
The recent UK House Price Index shows that the property prices of the region have increased by 5.6% in the year to July, compared to the national figure of 3.1% during the same time frame. Since June the numbers in the north-west have displayed a strong performance, showcasing a 3.4% growth when compared to the national 1.2% rate.
The ONS (Office for National Statistics) report reveals that the average region price of housing currently sits at £165,529.
Outshining national figures
House prices in the UK have increased by 3.1 in the past 12 months to July, 0.1% lower than the previous month’s report and the lowest national annual rate since the 3.0% increase in August 2013. Despite that, London has witnessed a decrease of 0.7% since July, the country’s overall figures could be altered by the capital’s shoddy performance.
This assessment is supported by cashbackremortgages.co.uk founder Suchit Sethi, says that the recent house price drop in London is “acting as a deadweight for the UK’s housing market, heavily contributing to the lowest combined annual growth in five years”.
“Without solid performances from properties in cities like Manchester, Birmingham and Bristol, the UK’s housing market would be in a much graver state than [at] present.”
Regarding the ONS data, chief executive of Emoov.co.uk, Russell Quirk said: “While many will be quick to highlight yet another landmark low in the rate of house price growth, the bigger picture is that the market has firmly found its feet and is registering strong annual and monthly price growth.”
Profit comes to homeowners
The ONS data displays that the average UK house price in July was £231,000, seeing a £6,000 rise when compared to the previous year. So homeowners are still in the green overall. In England, this figure has reached to £245,000, in comparison to £157,000 in Wales, £150,000 in Scotland and £133,000 in Northern Ireland.
Regardless of the north-west having the strongest property market in the country when it comes to its growth in house prices, the average cost of a house is still far from the national average, leaving the area open for the taking by investors and those looking to get onto the property ladder.