House price growth in the Northern regions of England have outstripped the rest, suggesting they are closing the gap on more expensive areas.
In the year to February prices rose by 8.0% in the North West and 7.9% in the North East, while month-on-month they recorded increases of 0.7% and 0.4% respectively.
This brings prices to £211,977 in the North West and £160,452 in the North East.
The data comes from the government’s UK House Price Index.
Jonathan Hopper, chief executive of consultancy firm Garrington Property Finders, said: “In England, the North West and North East continue to jostle for the dubious honour of being the region with the fastest rising prices.
“The North West edged in front in February, but in both cases the driver is the same – surging demand from buyers who see that their money goes further, and buys more home, in these better value regions.”
In contrast London prices increased by just 1.7% annually, while they fell by -1.1% month-on-month.
Across the UK as a whole, prices rose by 5.4% to £268,313 year-on-year in February, indicating that the market is still seeing stable growth. Prices have remained the same compared to the previous month.
Tim Parkes, chief executive of investment service RAW Capital Partners, said: “President Trump’s tariffs have reshaped the financial landscape and the impact on stocks and shares has been well documented.
“Could this prompt a flight to stability? If so, as today’s figures demonstrate, the UK property market could be a beneficiary, with bricks and mortar investments holding their appeal.
“At the same time, expectations that the Bank of England may need to cut interest rates – particularly if a trade war translates into a global recession – are already feeding into falling mortgage rates.”
