Increase in North East Property Prices Leads UK Market

The North East of England is experiencing the sharpest increase in property prices compared to any other region in the UK. This regional boom contrasts starkly with the broader UK market, where many areas are seeing a decline.

Recent data from the Land Registry pinpoints the North East as the UK’s hotspot for property price increases. In February alone, the average property price in the region soared to £160,406. This represents a substantial 3.2% increase from the previous month and a healthy 2.9% rise year-on-year. Such vigorous growth outpaces the national average significantly, where England saw a modest increase of just 0.6% in February, and a 1.1% decrease over the past year.

Comparative Regional Performance

While the North East races ahead, other regions aren’t faring as well:

Scotland: Despite a monthly dip of 0.6% in February, Scotland has enjoyed a 5.6% price increase over the past year.
Wales: Welsh property prices nudged up by 0.4% in February but have dropped by 1.2% compared to February of the previous year.
West Midlands: This region experienced the most significant decline in February, with prices falling by 1.2%, contributing to a 12-month decrease of 2.9%.
London: The capital remains the hardest hit over the last year. Despite an average property price of £502,690, London saw a decline of 0.7% in February, cumulating in a 4.8% fall over the past year.

Market Dynamics

The Royal Institution of Chartered Surveyors’ (RICS) February 2024 UK Residential Market Survey sheds further light on the market dynamics. It highlights a nationwide recovery in buyer demand, with the largest increase in properties listed since October 2020.

Industry Insights

Nathan Emerson, CEO of Propertymark, an industry group for estate agents, comments on the current trends: “A month-on-month growth in house prices is a sign of prosperous green shoots on the run up to spring, which is historic for its higher demand from buyers and sellers. This shows strength within the market and signs of a stabilising economy.” Emerson further notes that Propertymark’s own Housing Insight Report indicated an 18% increase in new properties coming to the market.

In addition, the Bank of England reports an increase in mortgage approvals, from 56,100 in January to 60,400 in February. Such positive figures bolster confidence for both potential and current homeowners across the UK.