Region with the best house price growth in Britain revealed

One region has outperformed all other regions of Britain in terms of house price growth since the Bank of England began to hike interest rates in December 2021, a study reveals.

According to GetAgent.co.uk, it used seasonal adjustment to measure the true state of the housing market.

Seasonal adjustment adjusts the data for the seasonal fluctuations of the housing market, such as the festive slowdown, to give a realistic view of the market conditions.

Without this, the data may be distorted by the seasonal patterns.

‘Seasonal influences on the market’

The firm’s co-founder and chief executive, Colby Short, said: “We often hear those involved within the property transaction process talk about seasonal influences on the market, whether it be a reduction in buyer demand levels or the rate of house price growth.

“It’s an important factor to consider, particularly when pricing your home for the market and seasonally adjusted market data can give you a far more accurate picture of what your home is likely to achieve.”

He added: “Of course, as is often the case, seasonal influence can differ quite drastically depending on which region you are looking to sell a home in.

“For example, in Scotland the seasonally adjusted rate of house price growth has trailed the general rate of growth by 2.1%, while in the East Midlands, it sits 0.5% higher.”

West Midlands has delivered the best house price growth

The study found that the West Midlands has delivered the best house price growth, while the North East was the leading region for house price growth based on the unadjusted data, with a 10% rise since December 2021.

However, after applying the seasonal adjustment, this figure was revised down to 9.6%. This made the North East the second best performing region, behind the West Midlands.

The West Midlands saw a 9.4% increase in house prices based on the unadjusted data, but this figure rose to 9.7% after the seasonal adjustment, making it the highest growth rate of any region.

Also, the West Midlands, along with the East Midlands and the East of England, had the least seasonal variation in their housing markets.

The East of England had the same growth rate of 5.3% for both the unadjusted and the adjusted data, indicating no seasonal influence on its house price performance.

The East Midlands and the West Midlands were the only regions that had higher growth rates for the adjusted data than the unadjusted data, by 0.5% and 0.3% respectively.

Share This Article