24 Sep 2018
Official figures have shown that house prices in the UK rose fastest in the North West when compared with a year ago.
In the region, property values grew 5.6% in the year to July, according to the Office for National Statistics.
Average house prices in the UK increased by 3.1% in the year to July, marking a slight fall from June’s 3.2% annual increase. The average UK house price was £231,000 in July, which was approximately £6,000 higher than in July 2017.
The biggest price fall was recorded in London, which saw a year-on-year drop of 0.7%. With that said, the capital city also had the highest average house price of £484,926 – a price that is almost four times higher than the North East, where the typical price stood at £131,505, marking a 2.8% price growth in the last year.
The South West and West Midlands regions both experienced a price growth of 4.4% while the South West recorded the second-lowest annual growth of 1.8% in the year to July 2018.
Shaun Church, director at mortgage broker Private Finance, said: "House price performance remains incredibly varied across the UK. London is the only UK region experiencing falling prices, as buyers increasingly look to the commuter belt for more affordable properties."
Post Office Money released research that revealed a nearly 10% property price growth over the last year in towns within a commutable distance of London, such as Reading and Luton.
Chrysanthy Pispinis from the lender, said: “With first-time buyers increasingly citing location as an area they are willing to compromise on, it follows that buyers have been looking for more affordable yet commutable options.”
With regards to different types of properties, detached houses showed the biggest prince increase, rising by 4.6% in the year to July 2018 to £352,000.
Meanwhile, the cost of renting in Britain increased by 0.9% in the year to August 2018 – the same increase as last month.
Kate Davies of the Intermediary Mortgage Lenders' Association said: "While rent increases are subdued over the last 12 months, it is likely that this will only be a temporary respite.
"The cumulative impact of successive government regulation implemented two years ago, namely the 3% stamp duty surcharge and the removal of mortgage interest tax relief, means we may soon start to witness a more pronounced impact on the sector."