House prices rise 1.6% as London falls – e.surv

The latest e.surv report puts the average house price in Great Britain at £327,400, up 1.6% on a year ago.

Its House Price Index reveals that prices have risen 0.2% over the month and 0.4% over the quarter.

Yorkshire and the Humber is the strongest-performing region, with average prices up 3.6% year on year to £235,800.

It has moved ahead of Scotland, which led the table last month.

Home buyers are cautious

The report states: “Higher mortgage rates have made buying more expensive, but the pressure is not evenly spread.

“Mortgage costs take up a much larger share of income in London and the South East than in lower-priced regions.

“Activity remains subdued, but there is little evidence of borrower distress.”

It adds: “Low arrears and repossessions suggest most existing borrowers are coping with higher rates.

“The main drag is buyer caution and affordability, not forced sales.”

Regional house price rises

The data also shows that the North West rose 3.5% to £248,600, Scotland was up 3.3% to £226,100, and Wales increased 3.2% to £236,100.

The West Midlands also remained ahead of the GB average, with prices up 3.1% to £278,700.

The East Midlands recorded annual growth of 2.6% to £265,500.

London was the only region where prices were lower than a year earlier.

The average price in the capital stood at £588,300, down 4.0% annually, although prices rose slightly over the month and quarter.

Southern England continued to lag behind the national figure. Prices were up 1.3% in the South West, 0.9% in the East of England, and 0.3% in the South East.

Wage growth helps

Wage growth has improved some headline affordability measures with average weekly earnings rising risen 8.5% since April 2024.

That compares with 6.4% for CPI and 2.9% for GB house prices.

However, household costs have also risen sharply over the same period.

Food and non-alcoholic drinks are up 6.6%, restaurants and hotels 7.3%, transport 8.0%, energy bills 9.3%, and phones and broadband 10.5%.

e.surv expects house prices to rise year-on-year in the near term, but says growth is likely to remain modest.