"Despite slowing price growth, particularly in the southern regions, the North continues to report positive results."
The research also shows that the traditional North-South divide has been upended, as price growth slows in southern regions. Outside of London and the South East, annual price growth continues to be 3.3% and in Wales the market is strengthening, with transactions holding steady.
The East of England saw prices rise 4.5% annually, and the South West recorded an increase of 4%. The North West and East Midlands are also seeing good figures, up 3.9% and 3.7%, respectively. Wales, the West Midlands and Yorkshire and the Humber all show more modest growth although the annual rate in these regions has increased. Annual price increases in six out of ten England and Wales regions are also still higher than annual earnings growth in the UK, which currently stands at 2.1%.
Overall, 93 unitary authority areas have recorded price rises over the year – 86% of the 108 in England & Wales. Of the 15 areas where prices have fallen, a third are in the South East. There are also 15 areas that saw a new peak average price in the month: four in the East of England, three each in the South West and Wales, two in the South East and one each in the North West, Yorkshire and the Humber and the East Midlands.
The East of England is still the strongest growing region, helped by strong performance in the likes of Bedfordshire (up 9.3% annually). Growth in the South West has narrowed the gap and includes the two strongest growing areas: Poole, up 10.5% annually, and Bournemouth, up 9.9%. Both coastal areas have benefited from strong sales of detached properties over the summer.
On an annual basis, the authority with the largest reduction in prices is Wokingham, where values have fallen by 6.9%. That area has seen one of the strongest increases in transactions over the June-August period, however, with sales up more than a quarter (27%) on the same period last year, second only to Ceredigion in Wales (up 36%). While price growth in Wales remains slower than in the fastest growth regions, it has picked up, and is now above the average of England and Wales, up 2.7% annually, against 2.1% last month.
Oliver Blake, Managing Director of Your Move and Reeds Rains estate agents, said: “Despite slowing price growth, particularly in the southern regions, the North continues to report positive results. The future, however, will rely heavily on stock availability, and with housing clearly on the political agenda, what government support may be offered to those looking to buy and who will ultimately influence market activity.”
