Brexit-related anxiety continues to hit the housing market, with investors and potential buyers waiting to see the economic impact of the UK’s departure from the European Union before making a move.
But new figures from the UK House Price Index show some regions are feeling the effect of Brexit much more keenly than others.
Which? analysed house prices between March 2018 and March this year using data from the Land Registry’s UK House Price index.
Find out where prices are rising and falling, and where homeowners are being hardest hit.
House price increase in the North
Overall, the average house price across the UK rose by 1.4% between March 2018 and March this year, from £223,612 to £226,798.
In recent months, activity in the housing market slowed, with the Bank of England’s May inflation report pointing to Brexit-related uncertainty, affordability constraints, increased housing supply and buy-to-let policy changes.
But our analysis found the north of the UK, with less of a reliance on international investment than the south east, has been less affected.
House price growth was strongest in Yorkshire and the Humber, where prices shot up by 3.6% in March, an increase from £156,466 to £162,129. Northern Ireland experienced a 3.5% increase, with the average price hitting £134,811, while Scotland saw a rise of 3.3% to £149,461.
Not all of the north benefited equally, however. In the North East region, prices actually fell over the period by 0.8%.
The table below shows the percentage increase and average house price (in brackets) between March 2018 and March 2019 across the UK.
- Find out more: how much is your house worth?
London house prices continue to fall
While other parts of the UK were on the up, London experienced a 1.9% fall over the past year. The average price hit £463,283 in March 2019, down from £472,357 one year earlier.
Once again, however, not all home owners are equally affected.
The prime housing market in London’s central zones, which attract a high concentration of international investors, was hardest hit. In Kensington and Chelsea, prices bombed by 16.4%, while prices in Westminster fell by 14%.
Going against the trend, house prices in the City of London borough rocketed by 16.2%. That said, it’s worth bearing in mind that central London markets tend to record a small number of home sales at high prices, so the percentage increases and decreases can seem extreme.
Outer London areas, including those popular with first-time buyers, also felt the pinch. Barnet, for example, dropped by 4.1% over the year, while neighbouring Harrow fell by 2.9%.
That said, a handful of London boroughs benefited from a house price boost over the past year. Merton, for example, saw house prices rise by 4% to £514,903, while Newham increased by 5%.
The map below shows the current average house price (in brackets) in each London borough and the percentage change over the year.
- Find out more: what will Brexit mean for house prices?
Which property type is selling more?
Just as not all areas are affected in the same way by Brexit jitters, some property types have held their value better over the past year.
Indeed, semi-detached and detached homes have seen an increase in average monthly price between March 2018 and March 2019, according to the UK House Price Index.
There has been a slight fall, however, in the sale of terraced and flats or maisonettes, which could be related to a difficult market for first-time buyers. London accounted for around 30% of all England’s flats and maisonette transactions in the period covered by the report.
The results are shown in the table below.
|Property Type||March 2019||March 2018||Difference|
|Flat or maisonette||£222,197||£223,988||-0.8%|
Source: UK House Price Index, Land Registry
- Find out more: how to sell your home
How to sell your house
If you need to sell your home at the moment, don’t be deterred by a slow market – there are simple steps you can take to improve your chances of a quick and successful sale:
- Having the property valued by a number of estate agents, who can help you set a realistic asking price.
- Sprucing up your property before valuations and viewings.
- Ensuring the photographs on the listing show your home in the best possible light.
- Including any special selling points on the listing, such as planning permissions.
- Shopping around for estate agents who have had success selling in your local area.
- If you’re buying a new property, getting your finances in order so you don’t face any delays in the property chain.
For more tips and tricks, you can read 7 reasons your house may not be selling.