East Midlands was the fastest growing region with house prices rising 6.5% for the year outpacing the rest of the country.
Data from the Office of National Statistics (ONS) shows house prices in the UK are up 3.2% for the year to August 2018.
East Midlands is the leading region rising 6.5% per annum and average property values of £194,718 compared to London -0.2% lower and values of £486,304.
There was strong growth in West Midlands with house prices up 5.1% and average property costing £199,000 with Wales also 6.2% higher for the year.
For remortgage buyers rising house prices in the Midlands can give them an opportunity to release capital which they can use to improve their home.
Fast growing cities in Midlands
According to Hometrack, cities in the Midlands are also performing well, all with house prices rising over 6% year-on-year.
Nottingham is leading with house price growth of 20% since 2007 and other cities such as Birmingham up 19% and Leicester higher by 23% over this period.
For buy-to-let landlords with existing properties in these cities, the rise in house prices creates more equity which they can benefit from if they sell in the future.
The following table from the ONS shows average house prices and annual change for homeowners to August 2018.
| Region | Average Price | Annual change |
|---|---|---|
| East Midlands | £194,718 | 6.5% |
| Wales | £162,374 | 6.2% |
| West Midlands | £199,000 | 5.1% |
| Northern Ireland | £132,795 | 4.4% |
| Scotland | £153,309 | 4.1% |
| Yorks and the Humber | £163,964 | 3.7% |
| North West | £163,487 | 3.3% |
| England | £249,748 | 2.9% |
| North East | £133,538 | 2.9% |
| South West | £257,659 | 1.9% |
| South East | £329,264 | 1.9% |
| East of England | £292,107 | 1.6% |
| London | £486,304 | -0.2% |
In the Midlands homeowners may be benefiting from the planned improvement in transport links to London such as the HS2 project pushing prices higher.
Home movers wanting to trade up when prices are rising will find their next property is more expensive which means they need a larger deposit or mortgage.
If you are a first time buyer strong house price growth in the Midlands would require a higher deposit, larger mortgage or greater earnings to purchase your first home.
In contrast, London is the only region where house prices are lower by -0.2% for the year to August 2018 and has been around zero for the last 6 months.
Housing market is softening
The Bank of England has reported a softening in the housing market with fewer transactions and weaker price inflation in many areas.
It says that the new-build market remained stronger than the secondary market and in August 2018 there were 66,440 mortgages a decrease of -0.4% compared to this time a year ago.
Despite this UK house prices are higher by 3.2% over the year with the average property value of £232,797 and growth has been stable since April 2018.
For equity release mortgage buyers the rise in prices means they can access this wealth to maintain their lifestyle or even reduce inheritance tax owed by your beneficiaries.
Figures from The Royal Institution of Chartered Surveyors (Rics) shows the number of sales agreed was negative and the lowest reading for five months.
The number of new buyer enquiries is flat and the 12-month sales expectations is negative, mainly driven by London.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or a buy-to-let investor.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release mortgage calculator, mortgage cost calculators, and property value tracker chart.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth for home and garden improvements or help your children start or expand a business.
