Northern England Leads the Way in House Price Increases

The latest Nationwide House Price Index for June reveals that the North of England is at the forefront of house price growth in the UK, with the region recording a 2.4% year-on-year increase. This surpasses the overall growth in England, which stood at 0.6%, and contrasts sharply with the 0.3% decline seen in Southern England.

Despite a challenging year for the housing market, with transaction volumes down by around 15% compared to 2019, the North continues to shine. This regional resilience underscores the North’s growing appeal as a lucrative investment hotspot.

Savills Predicts a 28.8% Increase Over the Next Five Years

Further bolstering the attractiveness of the North, Savills has forecasted a significant 28.8% increase in house prices over the next five years. This projection aligns with the region’s robust performance and ongoing regeneration efforts, making it a compelling opportunity for investors.

Off-Plan Units in High Demand

In light of these positive trends, investors are increasingly reserving off-plan units with a strategic view to financing them at lower interest rates in the coming years. The anticipation of reduced borrowing costs, combined with the North's strong growth potential, creates a promising outlook for those looking to enter the property market.

Key Highlights from the Nationwide House Price Index

• UK-wide Growth: House prices edged up 1.5% in June compared to a year ago.
• Regional Performance: Northern England leads with a 2.4% increase, while Southern England saw a 0.3% decline.
• Northern Ireland: The best-performing region overall, with prices up 4.1% year-on-year.
• Mortgage Rates: Higher borrowing costs have impacted transactions, but the volume of cash transactions has surpassed pre-pandemic levels.

Market Analysis

Robert Gardner, Nationwide’s Chief Economist, highlighted the impact of higher mortgage rates on housing affordability. Despite stronger earnings growth, the higher cost of borrowing means that affordability remains stretched. As of now, a typical first-time buyer needs to allocate 37% of their take-home pay towards monthly mortgage payments, significantly above the long-term average of 30%.

Looking Ahead

The mixed picture across different regions underscores the importance of strategic investment. Savvy investors are positioning themselves to capitalise on this trend with the North of England leading in price increases and promising further growth.

At Magnate Assets, we offer exclusive opportunities to invest in off-plan units across Northern England, ensuring you can secure properties at today’s prices with the potential for substantial future gains. Contact us today to learn more about how you can benefit from these promising market conditions.

Secure Your Future in Property Investment with Magnate Assets

Don’t miss out on the booming opportunities in the North. With expert guidance and exclusive deals, Magnate Assets is your trusted partner in navigating the dynamic UK property market.