The average UK house
price now stands at £147,197 compared to £144,485 at the beginning of the
year.
The North of England continues to grow rapidly with the North West seeing a
17% rise and the North East over 12%. In comparison the average house price
in the South East has fallen by 5%. Bradford & Bingley's figures are based
on completed sales between February and the end of June and offer the most
up to date picture of the current housing market.
Said Gary Verity of Bradford & Bingley Estate Agents: "Our figures show
that house price growth across the North has been phenomenal so far this
year. However, I think it is unlikely that we will continue to see prices
grow at the same rates as early 2002, which in some northern areas rose by
up to 30%. These present increases are more sustainable and a realistic
reflection of the current market."
Hotspots
Hotspots such as Liverpool, set to be crowned European City of Culture in
2008, the desirable commuter towns of Bramhall and Cheadle Hulme outside
Manchester, and the Fulwood and Longridge areas of Lancashire have led the
way in the North West, experiencing high demand and even higher price
rises. The average price of a home in the region now stands at £112,376.
Supply shortage in the North East pushes up prices
Following a slight decline in prices at the end of last year, the North
East, has benefited from the 'Baghdad bounce' with a rise of 12%. Verity
puts this down to the lack of supply of suitable homes in the region.
"However, once much of the regions planned 'new build projects' and the
redevelopment of Newcastle's Quayside are completed, then I predict that
the rate of growth may slow as more property is supplied to the market."
Scotland remains buoyant
The market in Scotland continues to remain buoyant with price inflation
rising by 6% over the last five months. Glasgow is presently enjoying a
boom, with rises of at least 7%. The West End and Bearsden branches are
reporting encouraging numbers of new instructions and keen applicants.
Although the remainder of the country is growing, buyers are not filled
with the same urgency as inside the city.
South prices fall
The South of England (South East and South West combined) has witnessed a
decrease of 6% since February, driven by a reduction in sales at the top
end of the market. Interest in the £1m plus market has been widely reported
as slowing down throughout the industry. Much of the current housing stock
has reduced in price with homes now selling at between 90 and 92% of the
original asking price, driving down the cost of an average home. The
average price of a property currently stands at £220,603 in the South East
and £147,944 in the South West.
Verity concluded: "The often frantic purchasing that we witnessed last year
in many areas has been replaced by a calmer, more reasoned approach. The
majority of buyers are now moving for real reasons such as wanting an extra
bedroom or a bigger garden, rather than because they feel they are missing
out on a property boom.
"Looking forward to the rest of the year, I think we will still see a
steady market with realistically priced properties continuing to sell. I
remain confident that there will be no dramatic downturn."
