ENGLAND IN THE RED: Lowest property price rises compared to other regions
Kate Faulkner reveals that Wales, Scotland and Northern Ireland have all seen higher property price rises year-on-year than England.
When you look at Scotland and Northern Ireland, they are clearly performing better than both England and Scotland, and indeed better than their long-term annual averages.
However, put in context, part of the reason for these rises is that people can afford to pay a bit more, because long-term, as you can see, Northern Ireland prices are still 18% lower than they were in the last recession, and although Scotland is seeing a rise of 37%, that’s still below Wales’s rise of 48% and England’s rise of 59%.
For regional property prices in Scotland, Wales and Northern Island, we monitor Halifax and E.surv.
Local expertise for each country is essential when looking at how the property market is performing. This is especially the case in the likes of Scotland and Wales where areas are as diverse as the English Regions.
Summary from the indices of the Welsh housing market
Principality Building Society – A gradual market recovery
“The average price of a home sold in Wales has dropped to £232,430 in the third quarter of 2024, dropping by 1.7%, which is still –2.9% below the year-earlier level and almost 7% below its peak of £249,000 at the end of 2022. The majority of local authorities have reported drops for this quarter, though there are pockets of increases which should not be overlooked.
“Merthyr Tydfil appears to have turned a corner with a 9.1% hike since the second quarter, following an earlier period of significant annual falls, followed by Wrexham with a 5.3% increase.
“While the raw data suggests that the market trend at a local level could be directionless, there are other positive contributing factors which should not be ignored. There were around 11,200 transactions in Wales in the third quarter, 18% more than in the second quarter and 11% up on the same period a year ago. This supports the recovery in property sales which began in the second quarter of this year, following a period of steady decline. For two years, cost-of-living pressures and higher interest rates had significantly reduced demand and slowed activity across most of the UK, including Wales.”
“House prices in Wales also recorded strong growth, up +5.6%, compared to the previous year, with properties now costing an average of £225,543.”
Summary from the indices of the Northern Ireland housing market
“Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by +10.2% on an annual basis in October. The average price of a property in Northern Ireland is now £204,242.”
Summary from the indices of the Scottish housing market
“Once again Scotland saw a more modest rise in house prices, where a typical property now costs £206,480, +1.9% more than the year before.”
E.surv – Modest recovery lifts prices to new highs
“Prices in August picked up by more than £2,000 (0.9%) compared with July. The increase took average prices to £226,600 – a fresh market peak for the fourth time since the Spring of 2024. That said, this is a modest recovery so far, with prices up by only 2.5% year-on-year.
“Reflecting these more up-beat market conditions, eighteen local authority areas recorded rising prices in the month. Prices in six local authorities – all in the central belt of Scotland – hit new market highs. East Renfrewshire mimicked West Lothian to post back-to-back fresh price peaks. Several other authorities including Edinburgh also came within touching distance of prices which would set new record highs.”
Regional data from our indices suggests that slowly but surely, we are seeing a change towards positive price growth year on year, but it’s still very marginal, except areas such as the North and Yorkshire and Humber where affordability isn’t as tough as other areas.
Commentary on the regional property price performance
“House prices are rising at an above-average rate in areas with more affordable house prices, e.g. the North East (2.0%), Yorkshire & Humberside (2.0%), the North West (2.3%), Scotland (2.4%) and Northern Ireland (5.6%). House prices are posting small falls in the Eastern (-0.3%) and South East (-0.1%) regions. UK house prices remain on track to be 2% higher over 2024 as price falls this time last year drop out of the annual rate of price inflation.”
“The North West remains the region of England with the strongest growth, up by +5.9% over the last year, to sit at £235,587.
“London continues to have the most expensive property prices in the UK, now averaging £543,308, up +3.5% compared to last year.”
