West Midlands leads way as London house prices fall in new data

 

The West Midlands was the best-performing region in the latest house price figures from the Office for National Statistics (ONS) and outperformed the UK overall, while London slipped back.

Average prices in Birmingham and the surrounding area went up by 4.6% in the year to November, while nationally they rose by 2.8% in the same period, a slight rise on 2.7% recorded in October. The ONS’ data, compiled from the Land Registry, puts the country’s average residential property price at £231,000. However, London was the only English region to record a fall with prices dropping by 0.7%.

Good times for Birmingham and surrounding area

The performance of the West Midlands follows on from other statistical findings and more anecdotal evidence that point to a successful time for the region’s property market. Home.co.uk’s Asking Price Index showed a rise of 5.2%  to a figure of £250,000 late last year, while other figures from the ONS showed record numbers of people fleeing London to live in Birmingham.

ONS house price changes year to November 2018

Major employers including HSBC and Deutsche Bank have relocated large portions of their operations to the city, while the construction of the HS2 rail link will see high numbers of people needing a place to live in the area. Other projects such as  building work for the Commonwealth Games in 2022 will also require a workforce, who will be attracted by an affordable average asking price of £197,000.

Looking around the UK with a less English-centric focus reveals that house prices in Wales over the year to November rose by an impressive 5.5% to an average £161,000. Homes in Northern Ireland went up by 4.8% in the year to Q3 to £135,000, while in Scotland they rose by 2.9% over the year to £151,000.

Brexit casts a shadow over the capital

The subdued performance of London’s property is likely to be tied to the ongoing uncertainty around Brexit, an issue that is rumbling on following the huge defeat for Prime Minister Theresa May in the House of Commons this week.

Office For National Statistics UK house prices 2005 to 2018

“On the one hand, the risk of uncertainty for the property market increases after yesterday’s Brexit deal vote,” said Jeremy Leaf, London estate agent and former chairman of the Royal Institute of Chartered Surveyors, “but on the other, it helps to concentrate minds on all sides as the threat of a ‘no deal’ rises, which was reflected in sterling’s strengthening immediately after the result was announced.”

John Goodall, CEO and co-founder of buy-to-let specialist Landbay, said: “These figures are likely to be a slight reprieve for ‘Brexit-ed’ out homeowners, unable to face more uncertainty-linked price turbulence.

“Looking into the detail, rising prices in the north have helped bridge some of the gap between those in London. Homeowners in the capital have been impacted by the upper stamp duty threshold, limiting their ability to move.

“There’s no escaping the fact that confidence in the market is low, bogged down by Brexit and economic uncertainty. However, these figures point to an opportunity for those in a position to buy. The combination of low prices, solid wage growth and attractive borrowing costs often proves to be too difficult to resist.”

CityGreens, Solihull, Birmingham

City-style apartments directly on Birmingham's largest park

  • Limited pre-launch prices.
  • ZERO ground rent
  • Excellent tenant demand

£182,000 - £419,000

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

build-to-rent Birmingham map of west Midlands

West Midlands leads way as London house prices fall in new data

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.