UK Property Market Outlook: Week Beginning 12 October
One region of England and Wales has seen the biggest increase in asking prices for two-bedroom flats and three-bedroom houses since the market re-opened, and it’s not in the south of the country.
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The south of England is not the only region to have benefitted as city-dwellers search for more greenery and outdoor space.
While areas like the Cotswolds, Ascot and Sevenoaks have risen in popularity, new analysis shows that asking prices in Yorkshire and The Humber have risen by more than any other region since the market re-opened. It suggests some buyers are prepared to go further afield for better value as they strike a new work/life balance.
The average asking price for a two-bedroom flat in Yorkshire rose 10% to £153,354 in the week beginning 28 September from £139,404 in the week starting 18 May, data from OnTheMarket shows. For three-bedroom houses, Yorkshire also experienced the biggest rise over the same period, increasing 8.4% to £186,045, as the below charts show.
A change in asking price does not necessarily show that underlying prices have moved but the fact Yorkshire tops the table for flats and houses by such a clear margin is a trend worth noting.
“The market has been so buoyant due to a huge influx of demand from the south of the country,” said Emma Hodgson, head of sales at Knight Frank’s Harrogate office. “Whereas the south-west of the country has a pull as a tourist destination, many buyers are coming to Yorkshire due to family connections.”
Half of all buyers she is dealing with are from the south compared to less than a third this time last year, she said.
While many buyers have responded to a period of lockdown by looking for more outdoor space, others have brought forward plans to re-locate due to uncertainty over the size and scope of any second wave of Covid-19. It will be one of several drivers of activity in coming months, as we explore in more detail here.
The appeal of Yorkshire will also have been boosted by its relative value versus other parts of the country. An average price in July of £171,325 compared to £325,734 in the south-east and £263,353 in the south-west.
Asking prices for two-bedroom flats in London fell by 4% over the same period, which was the weakest performance for the property types analysed.
While it underlines how buyers in the capital are looking for more space, a rise in the asking price of three-bedroom houses in London demonstrates the story is more nuanced than one of buyers leaving London.
As we have previously reported, there is minimal month-on-month price growth in London markets with a prevalence of family houses, while prices overall have stabilised since falling sharply in Q2.
