House and rent prices rise the most in the north of England

Strong buyer demand is seeing house prices surge in the north of England with Yorkshire and the west Midlands leading the way, Home.co.uk says.

Its latest index also reveals that rents in the north are also increasing ahead of London’s rates.

The platform says that the property market is showing resilience, but London is lagging behind.

It adds: “Overall, the vital signs of the UK property sales market indicate a positive state of health, due mainly to continued demand in the North.”

Rent rises fall behind inflation

The latest report shows that annualised rent price growth has dipped to 1.3%, lagging far behind inflation rates.

This figure is weighed down by Greater London’s substantial lettings sector, where asking rents are steadily falling.

The east Midlands remains the best performing region, indicating rental growth of 9.2% year-on-year.

The report states: “Rental yields are undeniably a key driver of regional growth disparity, directing investment away from arguably overvalued locations predominantly in the South towards the northern regions.”

North sees house prices rise

The data shows that northern regions are outpacing the south for its house asking prices.

Yorkshire has seen a 5.4% rise in average asking prices compared to last year.

Meanwhile, the South East limps along with a 0.3% increase, with the East of England close behind at 0.4%.

Issues for the market

Nationally, the average asking price growth for sales in England and Wales has risen to 1.9% – that’s up from the 0.1% recorded in March 2024.

However, Home.co.uk warns that this momentum hinges on sustained demand.

It adds: “Should demand fall significantly, the latter part of the year will be a miserable experience for the UK property market, given the vast amount of inventory already on the market.

“However, vendors and agents alike understand that the current level of demand is unlikely to be sustained after the increase in stamp duty on April 1st.

“By how much buyer appetite is quenched is anyone’s guess.”