Region ‘sets pace’ for house prices Midlands – not London – driving soaring market as estate agents witness record sales
THE price of homes coming to market is close to a an all-time high – with the Midlands driving the upward trend, according to property website Rightmove.
Across England and Wales, the average asking price in March was £310,108, marking a 1.3 per cent or £3,877 month-on-month increase, Rightmove said.
The figure stands only £363 below a record high of £310,471, recorded in June last year.
Price growth is now being driven by the Midlands, with the pace no longer being set by the London commuter belt, according to Rightmove.
Midlands-based estate agents are reporting record sales and indemand properties going to sealed bids. The West Midlands has the second-highest annual asking price growth, with a 4.2 per cent increase taking the £212,798.
Rightmove claimed the latest price increase was an indication of the “continuing resilience of the market” with strong demand from buyers and a shortage of suitable homes for average asking price to sale in many parts of the country.
The monthly price upswing is in line with the increase seen in March last year, although at that time demand was being boosted by buyto-let investors rushing to beat a stamp duty hike imposed on the sector on April 1.
But on a year-on-year basis, asking prices are now rising at a more modest rate. A year ago, prices were rising by 7.6 per cent annually, but now the annual increase is 2.3 per cent.
Across the country, the East Midlands has seen asking prices jump by 5.7 per cent annually – higher than any other region. The increase has taken the average price tag there to a new record high for the East Midlands of £200,620.
Among the regions which saw annual increases in asking prices, London saw the smallest growth, with prices up by 0.9 per cent yearon-year to £649,772 on average.
Miles Shipside, director of Rightmove, said: “The pace is no longer being set by the more affluent commuter-belt South, including London with its international appeal. Neither is it set by the cheaper North driven by a mass of investors swooping on
As markets in other areas run out of steam, the fundamentals of the Midlands have come to the fore
high buy-to-let yields. As markets in other areas of the country become more mature and run out of price rise steam, the fundamentals of the Midlands have come to the fore.”
Andrew Oulsnam, director of Robert Oulsnam & Company in Birmingham, said the majority of sellers are achieving their full asking price and in many cases exceeding the guide price. He said: “We expect property prices to continue to rise between four per cent and five per cent over this year, outpacing many other parts of the country.”
Jeremy McGinn, director of Jeremy McGinn & Co in Stratford-UponAvon, said: “We had a record month for sales in February and properties that are priced correctly are often going to sealed bids. Low stock levels are still a problem for us, especially for properties up to around £500,000.”
Rightmove