Yorkshire house prices dip as buyers and sellers face a tough autumn market
After a quieter summer, Yorkshire’s property market is showing some signs of life but buyers and sellers are still having to navigate a cautious market.
House prices in Yorkshire and the Humber have fallen 0.3 per cent over the past year, with the average property now valued at £217,085, according to the latest Lloyds house price index.
The fall is smaller than those recorded across much of southern England, but it comes against a challenging backdrop of higher borrowing costs and economic uncertainty.
Yorkshire estate agents say the market remains price-sensitive despite a steady flow of activity.
“Whilst the demand is there and we are agreeing a healthy number of sales, there is an element of caution amongst buyers and realistic property pricing is crucial in this current price-sensitive market,” says Sarah Harrison, director at Harrison Robinson estate agents in Ilkley. “To navigate this, we’ve adapted by sharpening our marketing creativity and driving a hands-on and proactive approach for our clients.”
The picture is not uniform across Yorkshire, or indeed the wider country.
Across the UK, the average house price fell 0.4 per cent annually in August to £298,468, marking the first year-on-year decline since November 2023. Prices also dropped 0.2 per cent month on month, following a 0.1 per cent fall in July.
Yorkshire’s annual decline was considerably smaller than those recorded in London, where prices fell 1.5 per cent, the South East, down 1.6 per cent, and the East of England, down 1.2 per cent.
The picture across the north was stronger. Prices increased 2.7 per cent in the North East and two per cent in the North West, while Scotland recorded growth of 3.5 per cent and Northern Ireland remained the strongest-performing part of the UK, with prices up 6.9 per cent.
Andrew Asaam, mortgages director at Lloyds, says: “What we’re not seeing is a rush of homeowners cutting prices.
“But more are choosing to sit tight, with sellers reluctant to accept offers they feel are too low, while some buyers are waiting to see how conditions develop.”
There are, nevertheless, signs that buyers are beginning to return to the market after a quieter summer.
Zoopla reported a seven per cent annual increase in the number of people searching for homes, with searches rising across every region and country for the first time in a year.
Its figures showed annual house price growth in Yorkshire and the Humber of 1.7 per cent in July, compared with 0.9 per cent across the UK. The average Yorkshire property was £196,100 on that measure.
But sales agreed remained six per cent below the previous year, while the number of homes on the market was five per cent higher, giving buyers more choice.
Mortgage costs remain a key obstacle. Zoopla said average five-year fixed mortgage rates had risen from below four per cent in January to around 4.8 per cent, reducing the amount a buyer could borrow while keeping their monthly repayment unchanged by nine per cent.
That affordability squeeze is likely to continue influencing decisions as the autumn market gets under way.
Nationwide reported a contrasting picture, recording UK annual house price growth of 1.6 per cent in August and a 0.2 per cent monthly increase.
The different readings underline how the housing market is being pulled in different directions, with regional performance, affordability and mortgage costs all playing a role.
For some parts of Yorkshire, particularly more rural and sought-after areas, there are still buyers willing to move when the right property comes along.
Nationwide research found properties within a National Park attract a 24 per cent premium compared with an otherwise similar home elsewhere.
The Yorkshire Dales, which grew by nearly a quarter a decade ago, with an extra 161 square miles, had an average house price of £315,000, according to the research.
Tim Gower, director at Robin Jessop, which has branches in Bedale and Leyburn, says: “Market conditions in the Yorkshire Dales are quite buoyant, particularly following the summer holiday period, with numerous properties going under offer at all price levels - ranging from small cottages through to large family houses.
"Properties with character and with scenic locations have shown the greatest level of interest. Meanwhile, properties requiring modernisation and refurbishment are still selling, but just at more realistic prices to reflect the cost of works involved.”