North West Enjoyed Solid House Price Growth During 2023

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House Price Growth Was Better Than Expected in North West & Other Regions

In 2023, many forecasters expected a significant price crash following an extended period of high inflation and rocketing mortgage rates.

However, the most recent Yopa analysis is the latest research to show that the property market held its ground amid economic uncertainty, offering hope for UK buy-to-let and house prices over the next 12 months.

For this study, Yopa looked at the UK House Price Index local authority data to see which areas had thrived during 2023 and which had seen a drop in property values.

The most recent index – the final one from 2023 – provides perhaps the strongest view of the property investment market across the last year, as we can see where property prices started and where they ended up over 12 months.

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How Were House Prices Nationally & Regionally in 2023?

Between January and December last year, the average national property price stayed around the same level, with a marginal decline of -0.3%. Considering that some forecasters expected property prices to drop 5-10%, this was a far more robust performance than many predicted.

While the national average failed to see much growth, multiple regions saw house prices rise significantly.

Scotland saw the most significant price rise in 2023, with the average rising by 4.2%. Meanwhile, the North West was the highest-performing region in England, seeing an average house price increase of 3.2%

Interestingly, Savills recently earmarked the North West buy-to-let market as one to look out for in 2024, expecting returns of 9.2% for investors. Judging by this confidence, it is no surprise North West property performed well in 2023, especially considering that the average property price is considerably less than the national average.

With many people struggling with a cost-of-living crisis, tenants and landlords were forced to look to the less expensive areas for low-risk investments in the UK; as such, the North West, North East and Scotland became much more enticing property investment options, particularly compared to London.

Find Out More: If you’re interested in more buy-to-let insights, check out our guides on buying property through a limited company and how to make money in real estate.

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What Do Experts Think About the Property Market Last Year & Looking Ahead?

CEO of Yopa, Verona Frankish, said the following about UK property prices: “In 2023, the UK housing market was predicted by many to endure dramatic price drops as the nation continued to endure the cost of living crisis, made all the worse with an increased cost of borrowing.

“But while a reduction in buyer demand certainly led to cooler conditions than we have seen in previous years, the result was a largely static market, not one in free fall.

“Furthermore, we see once again that diagnosing market health with the broad stroke of national averages fails to tell the whole story. Our nation is made of hundreds of local markets, and within many of them, prices have soared.”

Looking ahead to the rest of 2024, we have already seen more activity among buyers and sellers following the typical post-Christmas bounce. With mortgage rates dropping to a more affordable level, interest rates holding, and inflation falling to 4%, more property investment company investors are willing to take a chance on the market, particularly with tenant demand still pushing up rental prices. The likes of Knight Frank have also changed the house price predictions for this year, now anticipating an average rise of 3%.

Explore the intricacies of the UK property market with our 2024 buy-to-let area guides:

Author

Dale Barham

Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.