As mainstream media coverage of the housing market is dominated by stories of stuttering price growth and stagnation, there are areas of the UK which are experiencing unprecedented growth, thanks largely to the fact that the traditionally strong areas are experiencing a slowdown.
Listings and sales have been dropping for a significant amount of time in classically prosperous areas of the south east and south west. Areas in the north where traditionally growth has been slow, have conversely been experiencing quick growth and rising demand.
We’re going to take a look at the areas that have been benefitting most from the slowdown in the south.
It seems a little unfair to lump the entire country into its own category but, by and large, the majority of data covers the whole of Scotland rather than specific areas, although there are some separate reports about big cities such as Edinburgh and Glasgow.
According to the latest data released by YourMove Scottish property prices increased by a massive 7.7% over the last 12 months.
There are 32 local authority areas across Scotland and, of that total, 26 of those boroughs recorded growth in the last 12 months. Of that number, a further 10 recorded peak prices earlier in the year.
The two biggest winners within that category are Falkirk and Edinburgh, which recorded double digit growth, with Falkirk registering a massive 15.4% annually.
According to the Office for National Statistics’ UK house price index, the West Midlands was the second highest growing area in the UK, registering annual growth of 5.9%, and monthly growth of 0.8%.
Areas that have traditionally been less wealthy have struggled to grow significantly in terms of annual price increases but as investors are becoming more savvy the demand for investment property across the UK has increased.
Not far behind it’s regional neighbour, the East Midlands has also been performing extremely strongly throughout the year and has been on the radar of many investors for over 12 months now, with areas such as Nottingham and Derby doing extremely well for landlords and homeowners.
According to the government data, the region grew its house price index by a strong margin of 4.8%, with a monthly increase of 1.3%.
Potentially benefitting from the Northern Powerhouse project as well as the UK wide rebalancing, the North East was the biggest monthly grower with a 4.2% increase and an annual growth of 4.5%.
The local economy has been growing impressively for some time now with job creation and inward migration growing steadily.
Cities such as Sunderland, Newcastle and Middlesbrough have been enjoying a noticeable improvement in inward investment and economic growth and are making concrete plans to improve transport links with the other northern regions in order to boost growth.
House prices in the area remain low, meaning a lower point of entry into the market, making it very attractive for potential buyers.