Yorkshire could see the second highest price growth in Britain. Sharon Dale reports
Yorkshire could see the second highest house price growth in Britain over the next five years, according to the latest forecast from Savills.
The region looks set to see prices rise by 20.5 per cent by 2023. The national average predicted increase for the UK is 14.8 per cent.
Top of the growth table is the North West, where values are predicted to increase by 21.6 per cent followed by the East and West Midlands and Wales, which are all expected to see a 19.3 per cent uplift.
Close behind is Scotland with a predicted 18.2 per cent growth and the North East with a 17.6 increase.
In contrast, house prices are forecast to grow just 4.5 per cent in London and 9.3 per cent in the South East.
Lucian Cook, head of residential research at Savills, said: “The traditional north-south divide will turn on its head, with the Midlands, North and Scotland expected to see the strongest increases.”
Ben Pridden, head of residential at Savills York, said: “The north as a whole appears to be beyond the sphere of influence of London, which is being challenged by the short-term uncertainty fuelled by Brexit negotiations.
“The value for money, good schools effect and quality of life cards are falling in Yorkshire’s favour, sealing its reputation as a great place to live and work.”
He adds that the predicted growth in Yorkshire values also points to a catch-up with house price inflation in London and the South East.
London house prices have risen by 72 per cent over the past 10 years, well ahead of any other region.
Yorkshire hotspot York has seen a 30 per cent growth in the last decade and Harrogate a 20.4 per cent gain but some areas of Yorkshire, including Bradford, Doncaster, Hull and Barnsley, are still to recover from the fall in values in 2008 as a result of the global financial crisis.
Ben Pridden said: “The growth forecast in Yorkshire is a very positive sign. While many other parts of the country have seen significant growth over the last five years, particularly across London and the South East, Yorkshire hasn’t benefited to the same extent. As a result, we have got some way to catch up.”
Savills add that Brexit will continue to impact sentiment over the short term, particularly in London and its commuter belt, but local market affordability is expected to determine the pattern of price growth over the longer term,.
Lucian Cook said: “Brexit angst is a major factor for market sentiment right now, particularly in London, but it’s the legacy of the global financial crisis and mortgage regulation combined with gradually rising interest rates that will really shape the market over the longer term.
“That legacy will limit house price growth but it should also protect the market from a correction.”
Transactions, rather than house prices, are often seen as the ultimate measure of market strength.
Sales volumes have fallen only -6.9 per cent since the Brexit vote, demonstrating the resilience of the UK housing market, according to Savills.
The firm expects this figure to decrease by just one per cent over the next five years.