Midlands Sees Biggest House Price Growth in the UK.
Property news over the past few years has been dominated by stories of staggering price rises in homes across London and the South East, however in 2017 the Midlands is becoming the break-away region of growth within the UK, as house prices rise at a rate higher than anywhere else in the country.
The East Midlands in particular has benefitted from annual property price growth of 5.7% - over twice the national average of 2.3%, and this new focus on the Midlands is raising questions about the long- term sustainability of price growth in the South and whether investors should look at less mature markets such as the Midlands to seek more significant returns on investment.
Commenting on the figures is Robert Oulsnam and Company Director, Andrew Oulsnam.
“These new figures reflect what we have been seeing from buyers across the region for a number of months now. Property prices and demand has been strong since the very beginning of the year and shows no signs of abating. The Midlands has some particularly strong growth areas for investors and buyers and our team in each of our twelve offices have recorded higher than average sales volumes in 2017”
At its core is the questions of affordability. Many buyers feel priced out of the market in the South, but the Midlands provides more affordable housing, employment opportunities, economical stability and excellent transport links than many other regions, all of which are strong influencing factors for buyers. With house prices in the region averaging around £200,000 first time buyers are still able to get that first crucial step onto the property ladder without needing to rely so heavily on family to assist with deposits.
Asking prices were up in March by 2.1pc across the East and West Midlands, versus a national average of 1.3pc (source Rightmove) and this impact is being felt more heavily in the South where the property market has slowed, with some parts of London seeing property prices fall by as much as 15% in the last 12 months.
Stamp duty rises for larger properties and second homes have disproportionately affected the London and South East markets, while the Midlands has seen a rise in demand for property, leading to price increases for property in the area.
If you are a Southern investor it may be time to look further afield and if you are a homeowner or buyer in the Midlands, it will be reassuring to know that values are likely to continue to increase in 2017.