Recent data reveals that various regions across the UK are experiencing notable increases in average property prices, contrasting sharply with slower growth in the south of England. Blackburn is in first place, enjoying a massive 5.8% increase in average prices over the last twelve months. Wigan just behind with 4.4% up, Birkenhead almost as much with up with 4.1% worth of value added.
The executive director at the property site Zoopla, Richard Donnell, highlighted these regional trends, noting that the south of England is lagging behind in price growth. He stated, “There are more homes coming to market, giving buyers more choice, and sellers need to remain realistic on price.”
Despite these regional increases, UK homeowners are generally agreeing to sell their properties for approximately £16,000 below the average asking price. Average asking prices for homes across the UK are now £367,000. Usually, homes go under contract at about 4.5% less than that.
The UK’s average home now costs £268,250. This £4,330 increase over the last 12 months is a stark reminder of the sheer strength of the housing market. At an average across the whole of the UK, the typical home has experienced a relatively small price rise of 1.6% over the last 12 months.
The story in Scotland’s property market is quite different. With more homes available for sale, up 5% from a year ago, prices have risen 2.9% year-over-year. This increase in available inventory is indicative of a healthy market that can provide a wider array of choices to future buyers.
Donnell further commented on the current market dynamics, saying, “More homes for sale means more buyers looking to move. This, coupled with more attractive mortgage deals and changes to how lenders assess affordability, is supporting an increase in the number of sales being agreed.”
Scotland’s market—which has boomed to more than 300 active projects—is growing at an incredible pace. At the same time, the south-west of England is witnessing a real boom in potential homes for sale, up 21% on a year ago. This incredible influx only promises to continue impacting pricing and market activity in the area and creating new realities for buyers.
With these trends still unfolding throughout the UK property market, sellers need to be realistic about their pricing expectations. The stark differences in growth between regions underscore the need for top-down, strategic pricing and bottom-up knowledge of local market conditions.