The property market: are things rising up for the North West?
First off, they’re not in London, as some may think. Though prices in the capital remain on the whole significantly stronger than elsewhere in the country, the average London property increased in value by just 6.7% in the year to October 2022.
In Camden, prices went up by just 3.6%, while Kensington and Chelsea actually saw values fall by -7.1%, bringing the borough’s average property price down to £1.355m.
Still, London’s average house prices remain the most expensive of any region in the UK, with an average price of £542,000 in October 2022. Compare this to Stroud in Gloucestershire, where the average property sale went up by 19.2% over the course of 2022, reaching 366,039, Folkestone, where prices rose by 16.8% to an average of £325,702, or Maidstone, where a rise of 17.1% took the average home to £368,000.
On average house prices in the North West decreased by 0.1% or £330 over the last month.
Over the last year (last 12 calendar months) average house prices in the North West increased by 12.2% or £24,020.
However, across the North West, there is a significant spread of house prices at the Local Authority level ranging from £117,700 in Burnley to £384,100 in Trafford.
Predictions for the coming months vary widely. While small monthly decreases in the value of the UK’s average home were recorded in November and December 2022, values still remain high year on-year.
North West average house prices by local authority
We show in the chart below the average house price for every local authority across the North West.
The three most expensive areas for house prices in the North West are:
Trafford where average house prices are £384,100
Stockport, where the average house costs £306,100, and
Cheshire East where you can buy the average home for £302,300
The three least expensive areas for house prices in the North West are:
Burnley where you can snap up the average home for £117,700
Hyndburn with average house prices of £131,800, and
Blackpool where the average house will set you back £140,300
And while some predictions are forecasting an 8% fall in house prices over the next 12 months, it’s important to remember that even that would only see prices return to where they were in April 2021, still leaving them significantly higher than pre-pandemic.
On the other hand, Rightmove is reporting a rise in asking prices in January 2023, citing that the average asking price by new sellers has risen by 0.9% to £362,438 this month, which is the biggest January increase in three years.
So the picture is unclear. While UK house prices remain strong, mortgage rates are higher than they were last year and some predictions suggest that property prices could ease to compensate for higher mortgage rates. However, mortgage rates are now significantly lower than they were in December 2022, and they could continue to decrease in the coming months.
In all, property values remain high across the country, and competition for desirable homes remains high, particularly in those areas with the most growth.