Property values in London are lower for the fifth quarter with the North of England the worst performing region down over for the year.
Research from the Nationwide reveals average house prices in the UK were £177 higher at £214,922 rising 2.0% annually to September.
There were significant regional variations in property values with the North of England the worst performing region down -1.7% and London lower for the fifth consecutive quarter down -0.7% over the year.
The lower house prices in the North of England and London is welcomed news for first time buyers as they require a lower deposit or smaller mortgage to get on the property ladder.
In contrast Yorkshire and Humberside was the top performing region with house price growth of 5.8% over the year, followed by East Midlands rising 4.8%.
Many regions with strong growth
Robert Gardner Nationwide Chief Economist said, overall UK house price growth remained broadly stable, but regional house prices in Southern England continued to see more subdued rates of growth.
The following table from Nationwide reveals the percentage change for the third quarter 2018 in regions over the year.
| Region | House Price | Quarter change |
|---|---|---|
| Yorks and Humber | £160,263 | 5.8% |
| East Midlands | £186,414 | 4.8% |
| N Ireland | £139,374 | 4.3% |
| West Midlands | £190,607 | 4.1% |
| North West | £162,596 | 4.1% |
| Wales | £154,881 | 3.3% |
| East Anglia | £228,690 | 3.0% |
| Scotland | £149,161 | 2.1% |
| South West | £245,434 | 1.9% |
| Outer SE | £279,858 | 0.8% |
| Outer Met | £364,309 | -0.3% |
| London | £468,544 | -0.7% |
| North | £125,085 | -1.7% |
Yorkshire and Humberside was the strongest performing region in the UK for the first time since 2005 with prices higher by 5.8% for the year with East Midlands second higher by 4.8% year-on-year.
For buy-to-let landlords the higher prices means they would need a larger deposit to reduce the mortgage or higher rental income to cover the interest payments.
Northern Ireland had a pick up in house prices up 4.3% while Wales softened slightly to 3.3% for the year with slower growth for Scotland up only 2.1%.
Existing homeowners in areas with rising house prices means the remortgage buyer can release capital for home improvements.
For home movers leaving regions with rising prices to areas with falling prices could allow them to buy a larger home or reduce their mortgage by having more equity for a deposit.
Large regional variations in growth
For six successive quarter price growth in Northern England have exceeded Southern England, although in the North house prices reduced by -1.7% over the year with average property values at £125,085.
In London house prices were -0.7% lower with average property value is £468,544 and outer Metropolitan regions also reduced by -0.3% to an average value of £364,309.
There remains a significant gap with Southern England house price levels twice those of Northern England.
Higher house prices in Southern England allows the older equity release buyer to access property wealth, using a lifetime mortgage to consolidate debt or help your children start or expand a business.
Looking ahead Robert Gardner said, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.
Subdued economic activity with pressure on household budgets are likely to exert a modest drag on the housing market and overall we can expect house prices to rise by around 1% over the course of 2018.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth for home or garden improvements or pay for care at home.
At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Learn more by using the equity release calculator, property value tracker chart and mortgage monthly costs calculator. Start with a free mortgage quote or call us and we can take your details.
