New research indicates that the West Midlands stands out as the leading performer in the UK property market, exhibiting the most robust appreciation since the Bank of England initiated interest rate hikes in 2021. The study, which scrutinized house price performance across different regions in December 2021, utilized seasonally adjusted rates to present a more precise overview of market health. By accounting for seasonal fluctuations, such as the lull during Christmas, the research aimed to offer a more accurate portrayal of the property market.
Key findings from the research include:
- In terms of non-seasonally adjusted house price growth, the North East initially claimed the top spot with a 10% increase since December 2021.
- However, upon applying seasonal adjustment, this growth was revised to 9.6%, making the North East the second-strongest performer. The West Midlands surpassed it, emerging as the leader with a seasonally adjusted growth rate of 9.7%.
- House prices in the West Midlands region witnessed a 9.4% increase since December 2021, and when seasonally adjusted, this growth escalated to 9.7%, marking the highest increase among all regions.
- The research also highlights that the West Midlands, along with the East Midlands and East of England, experiences the least seasonal influence on property markets.
- Both the general and seasonally adjusted rates of house price growth in the East of England have maintained a steady 5.3% since the onset of interest rate increases, indicating minimal seasonal impact on performance.
- The East Midlands and West Midlands are noteworthy for being the only regions where seasonally adjusted house price growth has outpaced general house price growth. In the East Midlands, the seasonally adjusted growth is 0.5% higher, while in the West Midlands, it is 0.3% higher.
The research was commissioned by GetAgent