Indications of local markets gaining momentum, with property values experiencing an ascent of up to 10%
Recent research indicates that amidst the current economic uncertainty, housing prices might be experiencing a cooling trend. However, certain local markets are exhibiting a surge, characterized by property values that have escalated by as much as 10%.
Moverly conducted an analysis of house price fluctuations across Britain between January and May 2023, examining both regional and local authority (LA) levels using data sourced from the Land Registry.
Given the prevailing economic turmoil and the escalating mortgage costs, the housing market in Britain has remained relatively stagnant this year. Consequently, when considering a broader perspective, the price alterations have remained minimal.
During the period from January to May of this year, the average house price in Britain contracted by -0.6%. The lone exception was Scotland, where the average price experienced a 4.7% upswing.
All other regions in Britain witnessed marginal declines, with the most substantial drop of -2.5% recorded in the East of England. Nonetheless, delving into a localized analysis of price fluctuations reveals more dynamic movements, encompassing both upward and downward shifts.
The most significant decrease was observed in North East Derbyshire, where prices plummeted by -12.7%. Other areas like the Shetland Islands (-11.6%), Rossendale (-9.9%), and West Lindsey (-9.2%) also encountered noteworthy declines.
On the contrary, East Lothian in Scotland witnessed a remarkable surge of 10% in property prices over the five-month span. This was trailed by Renfrewshire (8.1%), East Cambridgeshire (6.7%), and Uttlesford (5%).
Oxford (4.6%), South Hams (4.5%), Aberdeen (4.4%), Winchester (4.3%), North Hertfordshire (4.1%), and Monmouthshire (3.8%) are also among the top 10 areas displaying the most substantial growth rates in housing prices this year.
Ed Molyneux, co-founder of Moverly, shared his insight on the matter:
“The national housing landscape, which frequently captures headlines, portrays a relatively steadfast market that seems to resist significant price fluctuations despite the broader economic challenges. However, it’s worth noting that the favorable price growth observed during the pandemic surge has now diminished.
Nonetheless, the national market comprises diverse local markets, and a closer examination of this data reveals a more intricate scenario. In one region of Britain, we observe staggering 13% drops, whereas in another, there’s a remarkable 10% growth.”