Fewer property markets see house prices outpace inflation

Fewer property markets see house prices outpace inflation

0:01 AM, 8th May 2024, About 2 weeks ago

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Despite a big drop in inflation, fewer areas in the UK are experiencing house price growth that outpaces inflation, research reveals.

An analysis by Octane Capital highlights that 56 local authorities saw inflation-busting house price growth over the past year, down from 75 the previous year.

The UK’s inflation rate has fallen dramatically, going from a high of 10.1% last year to 3.2% in 2024.

However, a sluggish housing market means fewer areas are exceeding inflation in terms of house price growth.

‘Rate of house price growth’

The firm’s chief executive, Jonathan Samuels, said: “Despite a notable reduction in the rate of inflation over the last year, a sluggish housing market means that there are now far fewer property market pockets boasting an inflation busting rate of house price growth.

“However, the good news is that the UK market is widely expected to show signs of growth as we move into summer 2024, which should help boost house prices to inflation busting levels across more areas of the market.”

He added: “For owners, investors, and even buyers alike, the fact that house prices have not plummeted in the past year, despite everything that politics and the economy has thrown at it, shows that bricks and mortar remain one of the best, most reliable investments you can make.”

House price increases surpass 10.1%

Last year, 75 local authorities – 20.8% of the UK market – saw house price increases surpass 10.1%.

This year, with a lower inflation rate, only 56 areas – 15.5% of the market – achieved house price growth exceeding the current 3.2%.

Despite the national slowdown, some regions continue to boast healthy price increases.

Inverclyde leads the pack with a 13.8% average house price growth over the past year.

The Outer Hebrides (11.9%), Rossendale (11.7%), Stroud (9.8%) and Ribble Valley (9%) round out the top five.

Other notable performers include Midlothian, Orkney Islands, Blaby, Derry City and Strabane, East Devon, West Lancashire and South Derbyshire.


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