Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Regional House Price Divide Widens as Scotland Leads and London Lags
House price growth across the UK's four countries is diverging sharply. England is recording consistent year-on-year increases of around +2%, while Wales and Scotland have seen growth slow considerably this month after rises of over 4% last month. Growth is now lower than inflation in all countries except Northern Ireland, according to analysis by Kate Faulkner for The Negotiator.
How the countries compare
Individual indices show how differently the four countries are performing. Lloyds data shows Northern Ireland remains the UK's strongest performer, with annual house price growth of +7.4% taking the average property price to £231,131. Scotland continues to record solid growth, up +3.6% year-on-year to an average of £223,246, while Wales stands at +1.6%, with a typical property value of £231,458.
Zoopla reports prices flat or falling across much of southern England, while northern markets continue to record stronger growth. It also places Northern Ireland in the lead, with annual growth of 5.4%, although growth there is beginning to slow.
Home.co.uk data shows every region posted a monthly gain, but the twelve-month picture splits the country in two. Scotland leads at +9.4%, with the northern English regions and Wales all ahead of the national figure. Greater London is weakest at -2.5%, and the southern regions sit at or below flat.
The North–South divide within England
Land Registry data shows England recording a 1.8% year-on-year rise, made up of a 2.5% fall in London through to a 4.7% rise in the North West. The North and Midlands divide continues, with prices in those areas above their last market peak in August 2022, while the South and the East remain between £6,000 and £27,000 lower than four years ago.
Time to sell is lengthening
According to Home.co.uk, the typical time on market for England and Wales is now 53 days, against 39 a year ago, a rise of +35%. Scotland is the quickest market at 20 days, while Greater London is the slowest at 64. Home.co.uk notes the average sits far above the typical figure in every region, which it describes as the signature of a tail of over-ambitiously priced stock sitting unsold.
Rightmove notes that the average figure for Great Britain doesn't reflect what's happening regionally, and that the capital has the largest choice of homes available to buy since 2010, so sellers are competing hard on price. Home.co.uk adds that the spread between the fastest and slowest regions is almost twelve percentage points, running along the price gradient: the cheaper the region, the faster it is still rising.
What it means for agents
Faulkner points to the Government's new roadmap to change the way homes are bought and sold as a potential improvement for time-to-sell, noting there are three years to get ready and a lot to do. For letting agents and inventory clerks, the regional split and lengthening marketing times in slower markets are worth tracking closely.
Source: The Negotiator