Northern English regions catalyse house price growth

Official figures have shown a surge in house price growth outside of London over the summer, however some analysts anticipate a slowdown in the market.

The Office for National Statistics (ONS) said that property prices in the UK rose by 13.2% in the year to the end of June - the fastest rate of growth measured in 17 years.

On average, house prices were £31,000 higher than for the same period in 2020.

The growth has been attributed to rising house prices in the North East and North West of England, along with Yorkshire and the Humber, and Wales.

The ONS says that the average UK home now costs £266,000.

Chief executive of mortgage broker SPF Private Clients, Mark Harris, said: "Once again the North West leads the charge, while London property prices lag.

"This reinforces what we have been seeing for some time - the race for space means buyers' money is going further outside the capital, inevitably pushing up prices."

The official data shows that the North West of England saw the fastest rise in house prices last year, jumping by a staggering 18.6%.

Wales saw prices rise by 16.7%, whilst Yorkshire and the Humber, and the North East of England recorded price jumps of 15.8% and 15.3% respectively.

Prices grew the slowest in London, where houses cost just 6.3% more than they did a year ago.

The data includes the month of June - which is when stamp duty tax breaks were beginning to wind down in Wales and England. Many deals were rushed through to try and beat the deadline.

Kate Allen, of lettings firm Salcombe Finest, said: "This overheated market continues to cook and it looks like we've got a property heatwave forecast for the rest of the year."

Others have suggested that the market could cool from a multitude of factors, including the end of tax breaks, and a slower than anticipated return to normal for the economy.

Scott Taylor-Barr, of broker Carl Summers Financial Services, said: "As for later this year and early next, the expectation is that while we won't necessarily see prices fall, a period of zero or negligible house price growth is most likely.”