North West Property Sees Highest Price Inflation in January

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New House Price Data Shows Property Market May Be Heading Towards Better Days

HM Land Registry’s new data shows that average UK house price annual inflation decreased by 0.6% in the 12 months leading up to January 2024. This is a drop from the 2.2% decline observed in the 12 months leading to December 2023.

As per the provisional estimate, the average UK house price was £282,000 in January 2024, which is £2,000 less than 12 months ago.

As always, some regions fared better than others regarding property prices, with the North West seeing the highest level of growth in England.

Let’s take a deeper look at property prices across the UK.

Discover more: What is a buy-to-let property investment strategy without thorough research into the current market? Check out some of our handy guides, such as our pages on how to make money from property and investing in property as a beginner.

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What Did House Prices Look Like in Different Regions?

In the year leading up to January 2024, house prices in England dropped by 1.5%, reaching £299,000, and in Wales by 0.8%, reaching £213,000. However, prices in Scotland rose by 4.8% to £190,000. In Northern Ireland, the average house price increased 1.4% to £178,000 in the last quarter of 2023.

From December 2023 to January 2024, average UK house prices increased by 0.5%, compared to a 1.1% decrease during the previous year.

London experienced the lowest annual inflation among English regions, with prices falling by 3.9% in the year leading to January 2024.

In contrast, the North West saw the highest annual house price inflation among English regions, with prices increasing by 1.0% in the same period. Some would say this is to be expected. The North West is predicted to enjoy 20.2% capital growth by 2028 (per Savills), higher than the UK prediction of 17.9%. In addition, Liverpool has the fastest-growing economy in the UK, while Manchester remains an alluring prospect for buyers and tenants alike.

Figures like these may convince buy-to-let investors to consider the likes of Liverpool when building a property portfolio. While price growth in the North West is better than the national average, it is also a more affordable region to invest in. Property prices in Liverpool are well below the national average at £176,371, according to HM Land Registry. In addition, Liverpool also sits on Zoopla’s list of cities with the best yields, averaging 7.43%.

Read More: If you want more buy-to-let insights, see our guides on safe investments in the UK and buying off-plan property.

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What Did the Experts Make of the Latest House Prices?

Tom Bill, head of UK residential research at Knight Frank, expressed caution, saying: “Although UK house prices are heading back into positive territory, the recovery is slower and more inconsistent than expected two months ago.

“Mixed signals on inflation mean rate cut expectations have cooled, mortgage costs have crept up, and downward pressure on house prices has increased. Based on current evidence, buyers can expect a rate cut in the summer rather than the spring, although mortgage rates may fall slightly in coming months if core inflation comes under control.”

However, Nathan Emerson, CEO at Propertymark, was more optimistic, stating: “Although we have seen a slight dip demonstrated within the latest ONS figures, we are now entering spring, which traditionally is one of the busiest times of the year for the housing market. This is an ideal time for buyers to start looking for homes that they can afford.

“Propertymark’s’ own Housing Insight Report showed that there is an 80 per cent increase in the number of new properties coming to the market. With house prices continuing to normalise following the turbulence of the last three years, there should be no reason why people should hesitate to buy their ideal home.”

Explore UK property investment in further detail with some of our recent buy-to-let area guides:

North West Property Sees Highest Price Inflation in January