The latest Zoopla report reveals significant regional disparities in the UK housing market. In the first half of 2024, northern England saw notable price increases, with Oldham, Wakefield, and County Durham leading at 83%, 77%, and 18% growth, respectively. Terraced homes priced below GBP 150,000 in the north experienced a 5% rise in value. Conversely, southern England struggled with stagnation and declines due to high mortgage rates. Prime locations like West-Central London showed some growth, but 27% of properties in the south remained stagnant or decreased in value. This divide presents distinct opportunities and challenges for buyers across regions.
The UK housing market is showing signs of regional variation, according to a recent report by Zoopla, a property website. While some areas are experiencing growth, others are facing a slowdown.
The report highlights a trend of rising house prices in northern England. In the first half of 2024, half of all homes in the UK saw value increases of at least 1%. A significant portion of these gains were concentrated in the north. Areas like Oldham (83%), Wakefield (77%), and County Durham led the way in property value growth.
Interestingly, Zoopla found that homes priced below GBP 150,000, particularly terraced properties, are experiencing the strongest growth in the north. Over 18% of terraced homes in the north increased in value by 5% or more since the beginning of 2024. This suggests that affordability is a key factor influencing buyer choices. With rising mortgage costs, value-for-money homes are in higher demand.
The picture in southern England is quite different. While some expensive properties in prime locations like West-Central London, Watford, and Bath showed growth (7 out of 10 homes increased by GBP 5,000 or more since the start of the year), affordability concerns due to high mortgage rates are impacting the overall market. Zoopla reports that property values in the south are more likely to have remained stagnant (27%) or seen a decrease (6.7%) compared to the north.
This regional variation in the UK housing market presents both opportunities and challenges for potential buyers. Those looking for affordable homes with good growth potential might find better options in the north, where half of all properties saw value increases. However, buyers seeking high-end properties in prime southern locations may have more negotiating power due to a cooler market.
It's important to note that this is a snapshot of the market in the first half of 2024. The housing market is constantly evolving, and future trends may differ. However, Zoopla's report provides valuable insights into the current regional variations and factors influencing buyer behavior, such as affordability and mortgage rates.
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