The North of England has emerged from the latest house price analysis as the ‘weakest performing’ region.
Nationwide’s House Price Index revealed values in the North have plunged by 1.7% over the three months from July to September compared to the same period in 2017.
Across the UK, however, Nationwide’s data showed there had been a steady annual increase of 2%, with prices growing at 0.3% during September.
Yorkshire and Humberside was the strongest when it came to house price growth, with values going up by 5.8% year on year. The East Midlands was following hot on its heels with an increase of 4.8%.
Meanwhile, in London, prices fell for the fifth quarter (three month period) in a row – this time the decrease was 0.7% year on year.
Robert Gardner, Nationwide’s chief economist, said house price growth had been confined to a fairly narrow range of around 2% to 3% over the past 12 months which suggested there had been little change between demand and supply in the market.
He added: “Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing activity and house price growth this year, though borrowing costs are likely to remain low.”
Good news
Jeremy Leaf, north London estate agent and former Royal Institution of Chartered Surveyors (RICS) residential chairman, thought the numbers were ‘good news’ because they indicated a fairly steady market following house prices falling by their largest amount in six years in August.
He added: “It is a mixed bag, however, because activity and prices in London remain challenging whereas in many places outside it is quite a different picture.”
Sam Mitchell, CEO of online estate agents Housesimple.com said the regional picture painted by today’s figures was interesting.
He said: “The UK housing market doesn’t live and die by what’s happening within the M25 and we should be encouraged by what’s happening beyond the capital.
“We also shouldn’t underestimate the importance of strong regional markets, because if we do leave the EU without a deal next March, it could be London that is the hardest hit.”
Prices a barrier for young adults
Meanwhile, Ishaan Malhi, CEO and founder of Trussle said a small jump in house prices would give home owners with high LTVs some breathing space. However, the outlook was not so good for young adults hoping to get onto the property ladder as homeownership still remained highly inaccessible.
He added: “First-time buyers in major UK cities now need an average income of at least £53,000 to get on the property ladder – an 18% increase in the last three years.
“The Government and the industry need to work together to make home ownership more accessible by prioritising innovative new solutions and mortgage propositions that will help young adults step foot on the housing ladder.”
Regions over the last 12 months (Source: Nationwide)
| Region | Average Price
(Q3 2018) |
Annual % change this quarter | Annual % change last quarter |
| Yorks & H’side | £160,263 | 5.8% | 2.1% |
| East Midlands | £186,414 | 4.8% | 4.4% |
| N Ireland | £139,374 | 4.3% | 2.1% |
| West Midlands | £190,607 | 4.1% | 4.3% |
| North West | £162,596 | 4.1% | 3.0% |
| Wales | £154,881 | 3.3% | 4.0% |
| East Anglia | £228,690 | 3.0% | 2.5% |
| Scotland | £149,161 | 2.1% | 3.1% |
| South West | £245,434 | 1.9% | 2.4% |
| Outer SE | £279,858 | 0.8% | 2.5% |
| Outer Met | £364,309 | -0.3% | 0.9% |
| London | £468,544 | -0.7% | -1.9% |
| North | £125,085 | -1.7% | 1.6% |
| UK | £216,103 | 2.1% | 2.2% |
