Asking price growth in Scotland outpaces the rest of the UK month on month

Asking prices in England and Wales have fallen this month compared to August, down 0.1%, but they are up in Scotland by 1.5%, according to the latest index.

They also fell in Greater London, down by 0.6%, taking average prices to £536.383, just 0.3% above where they were a year ago, the figures published by Home.co.uk show.

Across England and Wales average asking prices remain up 3.5% year on year but there are much fewer properties coming onto the market with the figures also showing that supply is down by 4% compared to a year ago.

Month on month all regions in England still saw asking prices rise with the exception of Greater London and the East of England where they slide for a third consecutive month, down by 0.1% to £223,311 but are still up 6.7% year on year.

The East Midlands continues to lead the annual regional growth table with a rise of 6.7% but asking prices were up just 0.2% month on month. A number of regions saw only marginal monthly growth with the South West and the South East up just 0.1%.

The Scottish market appears to be the most solid with month on month growth of 1.5% and annual growth of 3.4% to an average of £184,137, the data also shows. Wales saw month on month growth of 0.5% and annual growth of 3.1% to £191,974.

The East and West Midlands continue to prosper. Prices are rising over and above the rate of inflation and supply remains restrained in both regions. The North West and Yorkshire are still gaining additional momentum. The North East and Wales show confident monthly price rises too, both up 0.5%.

The index report says that overall the UK property market remains bipolar with London and the South and East slowing in favour of the North and West. According to Doug Shephard, director of Home.co.uk, price corrections are to be expected in the slowing markets and trends indicate that the northern markets look poised to put in the best performances they have shown for many years.

‘The North East especially has long awaited a meaningful recovery since the 2007 crisis. Current figures suggest that process has begun but it still has a long way to run. Looking forward it remains to be seen how far the London correction will go,’ he said.

‘Talk of raising interest rates, by members of the Bank of England’s Monetary Policy Committee, seems to be just that for now but such a move would almost certainly lower home prices in the capital and stifle recovery in the North,’ he pointed out.

‘On the other hand, the weak pound may attract further foreign investment and this could be a saving grace for the London market which is favoured by international investors. Time will tell but what is already clear is that the extraordinary growth experienced in London, the East and the South East is not to be repeated anytime soon,’ he explained.

‘On the contrary, prices look set to slide but how far they fall will depend on several external factors whose outcomes remain unclear,’ he concluded.

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