Values of prime properties in the Midlands & North have risen modestly by 2.0 per cent and 1.0 per cent respectively over the past year outperforming the UK average, according to recent analysis from Savills.
Values across these regions fell marginally by 0.1 per cent in the final quarter of 2018, which left them 1.0 per cent higher than the same period of the previous year.
These markets remain more robust compared with the UK prime regional market average, where prices have fallen by an average of 0.9 per cent in the past 12 months according to the recent analysis Savills.
The national context
In the final quarter of 2018, values across the prime regional housing markets of the UK fell by 0.3 per cent, which is 0.9 per cent lower than where they were at the start of the year. This is the fourth consecutive quarter that values have softened, according to Savills.
Due to the current highly price-sensitive nature of the UK property market, unusual properties that don’t often come to the market have commanded the strongest interest. This is because properties are realistically priced to attract buyers, according to Savills.
Meanwhile, the prime markets closest to London have felt the effects of a weaker market in the capital and have experienced greater falls in value than areas further afield. Yet, the fall in the suburban and commuter market around London only fell by 2.6 per cent and 1.6 per cent respectively in 2018.
Across the UK, demand has been the strongest for townhouses in cities such as York, Chester and Nottingham as urban property prices have risen by 14.9 per cent during the past five years.
Specifically, increasing prosperity in Manchester has driven price growth in its affluent suburbs and villages. However, rural houses across the wider region have not shown the same growth and are only just beginning to benefit from the wider pick-up in the region, according to recent analysis from Savills.
Looking to the future
This relationship between regional prime markets compared with London is forecasted to continue. However, in the short to medium-term, prime markets will remain price-sensitive and driven by needs-based purchasers, according to Savills
Going forward, prime markets in the Midlands & North will benefit from the flow of wealth out of London. This includes the increasing number of people relocating for work, attracted by places like Manchester that offer improving train connections and access to amenities.
Prime Midlands & the North property values will outperform other regions, growing by 15.3 per cent by 2023, according to the recent analysis from Savills.