House prices more resilient in North and Midlands.
The North and the Midlands have more stable housing prices than the rest of the country. According to the most recent property data from Zoopla, homeowners in the North and the Midlands are more likely to have seen price increases in the past six months when compared to homeowners in other regions. This is the case even though other regions have also had price increases.
According to its findings, the housing market is in a difficult state, with price declines occurring for 38 percent of homes in the most recent six months. Despite rising interest rates, a slowdown in house sales, and a rise in the cost of living, the data shows that 32 percent of homeowners have enjoyed a moderate price increase over the course of this period. Another thirty percent of homeowners have said that prices have remained unchanged.
During this period of six months ending in May, the value of nearly 9.2 million residences climbed overall. According to the data provided by Zoopla, out of the top 10 postcode areas in the United Kingdom with the highest proportion of properties increasing in value, four are found in the regions of Yorkshire and Humber. The cities of Halifax, Wakefield, Huddersfield, and Bradford are among those included. Only one of these top ten postcodes can be found in the southern region: Dorchester, which can be found in Dorset.
Other postcode areas that have housing markets that are more stable include Derby, Wolverhampton, Chester, Galashiels in Scotland, Hereford, and Carlisle. All of these can be found in the United Kingdom. Over the course of the past half a year, prices have gone up for more than fifty percent of the homes and businesses located in these postcode areas.
On the other hand, the postcodes in the south of England that largely had coastal sites were the ones that had the biggest concentration of residences whose value had decreased. As a result of people looking to migrate as a result of the growth in the number of jobs that can be done from home, prices rose in many of these places after Covid was released.
Brighton, Southend-on-Sea, Torquay, and Truro are some of the postcodes that have been hardest hurt by falling prices. Colchester is the location with the highest proportion of homes seeing a decline in value, followed by Canterbury, Kilmarnock, and Norwich – all of which have almost two thirds of properties recording price decreases. Norwich is the place with the lowest proportion of homes experiencing a decline in value.
The numbers from Zoopla are another proof that the housing market in the UK is now in a recession. According to the data provided by Zoopla, throughout the past year up until May, the value of 66% of homes in the UK climbed by at least 1%, while the value of 18% of homes decreased (again, by at least 1%).
During the previous six months leading up to May, however, this picture shifted, with only 32% of properties experiencing an increase in value and a far greater proportion (38%) experiencing a decrease in value.
However, according to Zoopla, this picture seems to be stabilising at the moment, with numbers for the three months leading up to May showing that the value of 36% of homes increased while the value of 26% of homes decreased. The worth of the other 38 percent of residences did not move at all.
According to Zoopla, throughout the course of the previous year up until May, the worth of properties that have gained in value have done so by an average of £7,000, which is equivalent to £19 each day.
On the other hand, it concludes that the valuation of each of the 11.1 million properties that have experienced a decline in value over the past six months has been reduced by an average of £7,700.
In spite of these price decreases, Zoopla estimates that the value of homes in the UK was worth £10.7 trillion in May, with the London market alone being worth £2.5 trillion. This figure does not include the value of properties outside of London. According to their calculations, this is comparable to the worth of all of the homes in the Midlands, Scotland, Wales, and Northern Ireland put together.
“While the headlines report that UK house prices have been falling, our analysis finds that there is more of an even split between homes with price gains and price falls over the last six months when looking at trends on a property level,” says Richard Donnell, executive director of Zoopla. “When looking at trends on a property level.”
“The value that a homeowner can get for their home unlocks the options for their next move, or it impacts how good of a rate they might get when they remortgage.” He says that homeowners are tracking values on a monthly basis more frequently in order to gain a better understanding of values and ensure that they make the appropriate financial decisions regarding financing.