Asking prices in England and Wales fell by 0.9% this month, a decrease of £2,758, in line with expected summer season trends, according to the latest index to be published.
The drop is very much in line with the average for this time of year, which has been a decline of 1.2% over the seven years since 2010, the data from the Rightmove index shows.
It says that the housing market faces some well documented headwinds however, and this continues to be reflected in the subdued annual rate of increase of just 3.1% but there are still location that are bucking the slowing trend.
Rightmove research at a county level reveals that rather than a north/south divide, it is the middle band of England that is overwhelmingly outperforming the rest of the country.
‘With newly marketed property seeing a monthly fall of 0.9% and a muted yearly rise of just 3.1%, the heat has come off much of the market. A combination of traditional summertime price blues and the chill of uncertainty in the air has cooled price growth in some parts of the country, and affordability also remains very stretched,’ said Miles Shipside, Rightmove director and housing market analyst.
‘But despite these factors, high demand and limited supply are still driving momentum, especially in the counties in the middle of the country. Here, year on year rises at over twice the pace of the national average are widespread, in contrast to southern and northern counties where none have approached these heady heights,’ he pointed out.
Of the English counties that are out performing the 3.1% national average annual rate, over half are in the mid-regions of the country. This is in contrast to only a quarter in the north and just a fifth in the south.
Of all the counties in England, 22 are seeing more muted price rises of below the national average of 3.1%. Of those above the benchmark, only six are in counties that form part of the northerly regions, and a mere five in southerly regions.
‘With a shortage of suitable choice in many parts of the country, buyers are becoming increasingly adept at hunting down property that fits their budget, ticks the boxes on their checklist and stirs their emotions. Properties in the counties that have seen above average price rises over the last year are clearly meeting the needs of home hunters at relatively affordable prices,’ Shipside explained.
‘Conversely sellers in the counties performing below par are having to ask for lower prices in order to sharpen up the appeal of their properties. Wherever sellers happen to be, they must not forget that buyer affordability has become increasingly stretched, and in this environment if you ask too much at the outset you are likely to lessen the chances of a successful sale,’ he added.
A breakdown of the figures show that the top eight county hot spots with price increases more than double the national average when compared to a year ago are all in the middle band of the country.
They are Leicestershire with growth of 6.9%, the West Midlands up 6.9%, Worcestershire and Bedfordshire both up 7%, Nottinghamshire up 7.1%, Norfolk up 7.4%, Derbyshire up 7.9% and Northamptonshire up 9.1%.
The best performers in the north are Merseyside with a rise of 5.6%, the East Riding of Yorkshire up 5.4% and Cheshire up 5.3%, while the south’s less impressive trend buckers are Kent up 5%, Somerset up 3.8% and Bristol up 3.6%.
Shipside believes that in places like Norfolk a popular holiday and retirement homes market is perhaps providing better value for those still active in this sector than parts of the south coast, plus its county town is the fast growing Norwich.
Derbyshire does well in the affordability stakes, being the cheapest of the top three and third cheapest out of the top eight with average prices around £200,000. The country’s top hot spot is Northamptonshire, aided by its commutability to London and affordability compared to counties closer to the capital.
