Sales and rental markets in the North are stronger than the South

The latest Asking Price Index report from says steadily rising mortgage costs have affected the market rebound. It adds that while earlier this year, the market factored in a cut in the Bank of England base rate as inflation fell, mortgage rates have since risen and this has “gently put the brakes on the market recovery”.

However, while it calculates that there has been an overall average 0.4 per cent increase in asking prices this month, indicating that ven­dors’ confidence has been dented, sellers in the North East, Yorkshire and Scotland remain much more bullish than in the southern regions and sales figures in Yorkshire, where the market has picked up, back this up.

Asking prices in Yorkshire are up 0.8 per cent this month taking the average asking price to £252,528, while Scotland saw the greatest rise of two per cent and the North East had a 0.9 per cent increase.

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It adds that should the mort­gage market not improve, vendors in the South will be the first to come under pressure to moderate their asking prices.

As for rents, they show posi­tive growth in all regions except Greater London, the UK’s largest rental market, where they continue to indicate weak­ness. However, the rate of decline has slowed to 3.2 per cent as greater numbers of boroughs return to positive growth.

The North East continues to be the regional growth leader in rent rises, followed by Yorkshire, registering hefty year-on-year hikes of 17.3 per cent and 15.1 per cent respectively. Meanwhile, Greater London rents are down 3.2 per cent.

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