Scotland and Northern Ireland have been crowned the year’s house price winners, outperforming their neighbors, England and Wales. Benham and Reeves, a London lettings and estate agency, conducted an in-depth analysis of house price growth across the UK. Their findings highlight Scotland’s impressive performance, with an average increase in house prices of 3.6%. This growth translates to a significant £6,615 rise in the average property value. The top-performing regions in Scotland include Clackmannanshire, with an 8.9% increase, City of Dundee (8.2%), East Lothian (7.6%), Renfrewshire (6.6%), and Na h-Eileanan Siar (6.1%).
An interesting facet of Scotland’s real estate boom is the growing interest from international buyers, particularly from the United States. Cities like Edinburgh, known for their historic appeal and scenic beauty, are becoming increasingly popular among American property seekers. This external demand, coupled with a limited supply of homes, is a key factor driving up prices.
Northern Ireland’s Rising Market
Not far behind Scotland, Northern Ireland also saw a noteworthy increase in house prices, averaging 2.5%. This growth means a typical gain of £4,406 in housing stock value. Northern Ireland shined with two regions in the top 20 for house price growth: Derry and Strabane, with a 7.8% increase, and Newry Mourne and Down, rising by 6.3%.
Northern Ireland’s unique position as the only part of the UK in the EU single market is believed to give it an edge in the housing market. This status may be a contributing factor to its strong performance in 2023.
England and Wales
In stark contrast to their neighbors, England and Wales experienced a downturn in house prices. England saw a decrease of 1.1%, while Wales faced a more significant drop of 2.4%. In cash terms, this meant an average decrease of £5,367 in Wales. Notably, no Welsh regions ranked in the top 20 for UK house price growth, with the largest fall occurring in Merthyr Tydfil (11.6%).
London, traditionally a hotspot for real estate, witnessed a shift in trends. While areas like Tandridge in Surrey and Richmond upon Thames saw substantial increases (10% and 9.7%, respectively), super prime locations like the City of Westminster experienced a sharp decline, with a 13.9% drop equating to a £145,687 loss.
Director’s Insights
Marc von Grundherr, the director of Benham and Reeves, encapsulated the situation succinctly. “Scotland and Northern Ireland have outshone their English and Welsh counterparts this year, reflecting shifting demand across the UK. The appeal of Scotland’s rugged terrain and historic charm is attracting buyers from outside the country, while Northern Ireland’s new status as the only part of the UK in the EU single market arguably gives it an advantage. Fewer investors appear to be competing for London’s prime real estate. However, there are still some areas of the capital that are performing very strongly”