Average house prices increased by 4.1% across England and Wales in the year to October 2021, according to e.surv Chartered Surveyors’ House Price Index.
On a monthly basis, average property prices rose by 1.4% between September and October 2021.
Overall, e.surv found that the average price of a house in England and Wales was £335,325 at the end of October.
Wales had the highest rate of annual price growth at 10.8%, while at the other end of the scale, Greater London is the sole area with growth rates below 3.0%.
The North East reported 3.3% of annual price growth, with the South East and the East of England both seeing a 3.8% increase.
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The South West, and Yorkshire and the Humber have similar rates at 4.5% and 4.9% respectively, with the East and West Midlands at 5.8% and 5.7% apiece.
Finally, the North West retains its title as having the highest rate of growth of all the English regions at 6.9%.
Richard Sexton, director at e.surv, said: “The complexity of the UK residential property market is evident in the varying regional performance.
It aptly illustrates why talk of national average house prices can be unhelpful at a micro-level. While Wales continues its strong performance annually, regional annual house price performance in England has revealed that the north-west, and within it specifically Blackpool at a staggering 16.9%, has comfortably out-performed the rest of the country.
“This means that for five of the last eight months the North West has been at the top of our regional league table in terms of having the highest rates of annual house price growth and it continues to have the highest rate of growth of the nine regions in England.
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“The factors that have spurred the growth seen in Blackpool also affect other areas in the region. Warrington and Merseyside had the second- and third-highest growth in the North West over the year.
“All property types in these areas saw an increase in values over the year, but especially the prices of semi-detached homes which were up by £25,000 and £16,000 respectively.
“At a macro-level, the decision this month to hold interest rates will support buyers considering a home-move imminently and with a voting margin of five-two to hold, there is speculation that it is unlikely we will see any rise before the first quarter of 2022.
“The Bank of England is clear that it expects inflationary pressures to lessen – National Insurance tax rises due in April next year may already be having a desired effect.
“The Office for Budget Responsibility is now forecasting low but positive rates in 2022 and into 2023, with a steady increase in subsequent years which means borrowers should feel confident about buying – particularly with continued government support for 95% loan-to-value (LTV) lending which will support prices.”
By Jake Carter
Source: Mortgage Introducer
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