May's regional house prices 'defy Brexit uncertainty'

The latest house price index from Rightmove shows that May saw a 0.9% increase (£2,841) in house prices, buoyed by higher demand due to the spring property market.

Related topics:  Finance News
Amy Loddington
20th May 2019
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Prospective buyers in Wales, the West and East Midlands, and the North West are being confronted with average prices of property coming to market at all-time highs. While the national rate of increase is virtually flat at +0.1% compared to a year ago, these regions have considerably higher prices than at this time last year, with Wales breaking through the £200,000 barrier for the first time. By contrast, London and its commuter belt (the South East and East of England regions) have seen year-on-year falls.

Miles Shipside, Rightmove director and housing market analyst comments:

“Price increases are the norm at this time of year, with only one fall in the last ten years, as new-to-the-market sellers’ price aspirations are under-pinned by the higher buyer demand that is a feature of the spring market. Indeed the 0.9% monthly rise is consistent with the previous two years’ average rise of 1.0% over the same period. What will seem inconsistent to some, given the ongoing uncertainty of the Brexit outcome, is that four out of eleven regions have hit record highs for new seller asking prices.”

Brian Murphy, Head of Lending for Mortgage Advice Bureau comments:

“The Rightmove House Price index provides a market snapshot from estate agents across the country, so provides us with an interesting insight into consumer behaviour. Looking at this months’ data, the fact that Wales, the East and West Midlands and the North West are reported to have been ‘star performers’ again over the last month isn’t entirely surprising. Localised factors, such as the recent lifting of tolls on the Severn Bridge and the ongoing infrastructure improvements around the Mersey Gateway are likely to be a contributing factor to the sustained levels of buyer demand in these areas. Elsewhere however, according to the Rightmove data, the diverging market picture seems to be continuing and consistent on the previous twelve months or so, which again isn’t exactly unexpected.

"What does appear to be clear is that, regardless of region, there is still a discernible level of buyer and seller activity as pent-up demand appears to have given way to a degree of commitment. That said, in some areas it appears to be more of a ‘needs driven’ market, whilst the majority of discretionary movers still spectate from the side-lines. However, for those whose individual circumstanced dictate that they need to move home, the current highly competitive mortgage market is likely to provide support in the form of near-record low product rates, and lenders who are very much ‘open for business.”

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