Yorkshire property market may not follow London slowdown

In a year beset by Brexit, shock election results and rising inflation rates, it’s little wonder that some homeowners are hunkering down rather than moving house.

The effect has been a shortage of homes for sale and the latest Rightmove price index highlights this, along with signs of affordability issues and the annual summer slowdown.

Rightmove’s Miles Shipside says: “In spite of high demand and lack of suitable supply, stretched buyer affordability continues to act as a price brake, though all regions have seen year-on-year price rises. The national average stands at a relatively subdued 2.8 per cent.”

London asking prices have risen by just 0.9 per cent since July 2016, Yorkshire’s have increased by a respectable 4.1 per cent, only out-performed by the East Midlands at 4.9 per cent and the West Midlands, where prices jumped by 6.1 per cent.

The most recent data from the Land Registry’s index, which charts what properties sold for in May, shows the North East had the lowest annual house price increase rising just 1.6 per cent since May 2016. London was second from bottom at three per cent. Yorkshire was comfortably mid-table at 4.4 per cent and the East of England showed the highest year-on-year rise in sold prices at 7.5 per cent, followed by the East Midlands with a 7.2 per cent increase.

Miles Shipside believes the fundamentals that underpin a healthy property market remain robust. “Low unemployment, low interest rates, strong demand and historic under-supply of homes are mitigating any wobbles in confidence and, as a result, nearly half the properties on the market, over 45 per cent, have sold signs slapped across them.”