There is a marked disparity between the North and South of England. Northern English regions have shown promising market performances with inflation-beating price growth, while southern areas have lagged behind.
The region that has experienced the highest annual price growth for September is the North East, followed by the North West and Yorkshire. Home notes that these regions are known for much more attractive buy-to-let rental yields than London and its nearby areas, possibly leading to more demand and better market performance.
The West Midlands, Scotland, and Wales are also registering above-inflation gains; however, the remaining five English regions are experiencing growth well below the average for England and Wales. According to Home, these areas are losing ground in real terms as they are unable to keep up with inflation.
Home also forecasts that this north-south divide will persist even as mortgage rates improve due to more attractive rental yields in the North. These are constantly improving due to rental costs increasing ahead of home values in the three top northern regions.
