Why Yorkshire house values are among the most resilient in the UK

Average UK property prices dropped by 2.4 per cent year-on-year, easing from 2.6 per cent in June. The South East saw the greatest downward pressure in values with prices dropping by 3.9 per cent, followed by Greater London down 3.5 per cent.

The average UK home now costs £285,044 compared to their peak of £293,992 last August and Kim Kinnaird, Director of Halifax Mortgages, said: “In reality, prices are little changed over the last six months, with the typical property now costing £285,044, compared to £285,660 in February.

“The average pace of annual decline also slowed to 2.4 per cent in July, versus 2.6 per cent in June. These figures add to the sense of a housing market which continues to display a degree of resilience in the face of tough economic headwinds.”

She adds that the first-time buyer market is holding up relatively well, with indications that some of those would-be buyers are now searching for smaller homes to offset higher borrowing costs.

However, Halifax data shows that the buy-to-let sector appears to be under some pressure, thanks to higher interest rates and upcoming rental market reforms.

Kim Kinnaird adds: “Prospects for the UK housing market remain closely linked to the performance of the wider economy. Several factors are providing support, notably strong wage growth, running at around seven per cent annually and while the uptick in unemployment is likely to restrain that, it seems unlikely to reach levels that would trigger a sharp deterioration in conditions.”

She warns that interest rates will likely remain much higher than homeowners have become used to over the last decade. Longer term, Halifax analysts believe that the continued affordability squeeze will see market activity constrained and average UK house prices are expected to continue to fall gradually into next year, though this is likely to be a slow slip rather than a steep decline that is unlikely to fully reverse the house price growth recorded over recent years, with average property prices still some 19 per cent above pre-Covid levels.

Jason Tebb, CEO of property search website OnTheMarket.com, says: “The high cost of living and numerous rate rises are impacting how much buyers are willing and able to pay for their next home.

“However, given all the economic uncertainty, it is remarkable how relatively stable the market appears to be. There are committed buyers who wish to move but they are also increasingly price sensitive. Motivated sellers would be wise to seek advice from an experienced agent who understands the market in their area, ensuring they price sensibly to achieve a timely sale.”

Realism is absolutely key in this market and finding a good agent that you can trust to put a realistic price on a property is vital. Those who price high just to get your business and boost the amount of stock on their books should be avoided at all costs.

Over at Hamptons, research shows that price reductions have reached their highest level in at least nine years and 50 per cent of homes in England and Wales sold following a price reduction, up from 47 per cent in June.

Most of the increase in price reductions has come from more affordable homes where sales are more likely to be needs-based and where higher mortgage rates are hitting hardest.

It took the average seller 49 days on average to accept an offer on their home last month, making it the slowest July to sell a home since 2013.

Simon Blyth of Yorkshire based Simon Blyth estate agents says: “Core property values in Yorkshire have always been strong because of the region’s transport links, good levels of employment and stunning countryside. I don’t think there will be a major shift in values in the next few months and I don’t think interest rates will go down again but we will get used to them.”

He adds: “What we are experiencing is a blip and we have had bigger blips than this. Also bear in mind that buying a house for the long term is likely to be the best investment you will ever make.”