Investors Buck The Trend – Areas Where House Prices R…

Last year, 2023, was a challenging one fo the housing market in the UK and a frustrating one for investors.

While there were profits to be made, choices of location and property type became ever-more critical.

Popular belief may have it that the housing market generally fell, but this is far from the case.

Analysis by Halifax – based on 12 months of mortgage approvals by itself and the sister Bank of Scotland – shows that Huddersfield bucked the trend completely with homes rising 8.7 per cent annually. Nearby Bradford did almost as well, with prices up 8.5 per cent.

 

Kim Kinnaird, director of Halifax Mortgages, says: “Across the UK, this year’s market has been hit by the squeeze on mortgage affordability, but there’s been a big difference in how house prices have performed in towns and cities across the country. House prices can be swayed by many factors, from the number of homes for sale, the local jobs market, and services like education and public transport.

 “Buying a home in Huddersfield or Bradford may well have cost considerably more in 2023 than it did last year, but that’s not the case in Stoke-on-Trent, for example, which might now be offering better value for money. However, when buying a home is such a major financial commitment, it’s important to consider the longer-term trends. Many homeowners will feel reassured to know that the average UK house price remains around £40,000 higher than before the pandemic.”

And Nathan Emerson – chief executive of estate agents’ trade body Propertymark – comments: “When the housing market is on the receiving end of high inflation and interest rates, it is inevitable that the market becomes more fragmented than usual with some geographical areas performing better than others. 

“While it has been an extremely challenging year overall, it’s not all doom and gloom and some parts of UK have maintained stability with house prices, whilst some homeowners have actually seen their homes increase in value.”