Scotland and Northern Ireland are outshining England and Wales in terms of house price inflation, with both regions experiencing strong gains in 2023 despite the troubled economic climate.
The analysis comes from London lettings and estate agent, Benham and Reeves, which looked at house price growth on both a regional and local authority level to reveal which areas have provided homeowners with a candy cane return since last Christmas, versus those who have yielded a lump of coal.
The research shows that in Scotland house prices rose by 3.6% year-on-year, amounting to a £6,615 uplift on the average property price, while they also rose by 2.5% in Northern Ireland, with the country’s housing stock making typical gains of £4,406.
This contrasts with England, where house prices fell by -1.1%%, and even more so Wales, where they dropped by -2.4%, or an average of ÂŁ5,367.
Scotland – outside interest
Across the UK five of the top 20 regions with the highest house price growth were in Scotland: namely Clackmannanshire (8.9%), City of Dundee (8.2%), East Lothian (7.6%), Renfrewshire (6.6%), and Na h-Eileanan Siar (6.1%).
One reason Scottish prices are rising can be attributed to interest from outside the country, combined with limited supply. Bloomberg reported in September that US buyers are showing a growing clamour for Scottish property, especially townhouses in cities like Edinburgh.
Northern Ireland and the single market
Northern Ireland had two regions in the top 20, as Derry and Strabane saw prices increase by 7.8%, while prices rose by 6.3% in Newry Mourne and Down.
The country is in a unique situation following Brexit, as it remains in the EU single market while being able to enjoy the benefits of distributing goods to the rest of the UK, arguably giving Northern Ireland businesses an advantage.
A mixed picture in England
Some English regions performed well, as Tandridge in Surrey saw prices soar by a significant 10.0% year-on-year. This was followed by Richmond upon Thames (9.7%) and Stratford-on-Avon (9.0%) .
Super Prime London seems to be losing some of its appeal however, as the City of Westminster saw prices drop by -13.9 % year-on-year, amounting to an eye-watering loss of ÂŁ145,687 .
At the other end of the spectrum the more affordable Oadby and Wigston, saw a price drop of -8.6% .
A difficult year for Wales
In Wales house prices fell by -2.4% on average, suggesting more people are struggling with the effects of rising interest rates and inflation in the country. No regions in Wales made the top 20 in terms of UK house price growth.
The biggest house price fall in Wales was in Merthyr Tydfil, where they dropped by -11.6%, or ÂŁ17,847 in cash terms.
Director of Benham and Reeves, Marc von Grundherr, commented:
“Scotland and Northern Ireland have outshone their English and Welsh counterparts this year, reflecting shifting demand across the UK.
“The appeal of Scotland’s rugged terrain and historic charm is attracting buyers from outside the country, while Northern Ireland’s new status as the only part of the UK in the EU single market arguably gives it an advantage.
“Fewer investors appear to be competing for London’s prime real estate, however, there are still some areas of the capital that are performing very strongly. So while alternative parts of the UK property market may have enjoyed their day in the sun during 2023, the London market has still held its own and remains popular amongst those looking to invest in bricks and mortar.”
Location
AveHP – Dec 2022
AveHP – latest Sep 2023
Change ÂŁ
Change %
East Midlands
ÂŁ251,948
ÂŁ251,068
-ÂŁ880
-0.3%
East of England
ÂŁ357,347
ÂŁ352,509
-ÂŁ4,838
-1.4%
London
ÂŁ535,425
ÂŁ537,424
ÂŁ1,999
0.4%
North East
ÂŁ159,145
ÂŁ163,368
ÂŁ4,223
2.7%
North West
ÂŁ216,657
ÂŁ218,013
ÂŁ1,356
0.6%
South East
ÂŁ397,245
ÂŁ392,174
-ÂŁ5,071
-1.3%
South West
ÂŁ327,383
ÂŁ328,668
ÂŁ1,285
0.4%
West Midlands Region
ÂŁ252,618
ÂŁ253,624
ÂŁ1,006
0.4%
Yorkshire and The Humber
ÂŁ210,094
ÂŁ210,156
ÂŁ62
0.0%
Northern Ireland
ÂŁ175,124
ÂŁ179,530
ÂŁ4,406
2.5%
Scotland
ÂŁ185,124
ÂŁ195,387
ÂŁ10,263
5.5%
Wales
ÂŁ219,845
ÂŁ214,912
-ÂŁ4,933
-2.2%
England
ÂŁ309,768
ÂŁ309,602
-ÂŁ166
-0.1%
United Kingdom
ÂŁ289,728
ÂŁ291,385
ÂŁ1,657
0.6%
Best performers – by change %
Location
AveHP – Dec 2022
AveHP – latest Sep 2023
Change ÂŁ
Change %
East Lothian
ÂŁ309,948
ÂŁ347,866
ÂŁ37,918
12.2%
Test Valley
ÂŁ406,768
ÂŁ440,304
ÂŁ33,536
8.2%
Derry City and Strabane
ÂŁ152,276
ÂŁ164,092
ÂŁ11,816
7.8%
North West Leicestershire
ÂŁ270,389
ÂŁ290,966
ÂŁ20,577
7.6%
Hammersmith and Fulham
ÂŁ741,669
ÂŁ797,211
ÂŁ55,542
7.5%
City of Dundee
ÂŁ143,255
ÂŁ153,664
ÂŁ10,409
7.3%
Clackmannanshire
ÂŁ166,085
ÂŁ177,410
ÂŁ11,325
6.8%
Cannock Chase
ÂŁ228,001
ÂŁ242,747
ÂŁ14,746
6.5%
Inverclyde
ÂŁ123,829
ÂŁ131,694
ÂŁ7,865
6.4%
Newry Mourne and Down
ÂŁ185,143
ÂŁ196,829
ÂŁ11,686
6.3%
Worst performers – by change %
Location
AveHP – Dec 2022
AveHP – latest Sep 2023
Change ÂŁ
Change %
City of London
ÂŁ975,240
ÂŁ807,475
-ÂŁ167,765
-17.2%
Blaenau Gwent
ÂŁ135,155
ÂŁ118,142
-ÂŁ17,013
-12.6%
Burnley
ÂŁ114,826
ÂŁ104,626
-ÂŁ10,200
-8.9%
Torridge
ÂŁ332,518
ÂŁ304,023
-ÂŁ28,495
-8.6%
Hastings
ÂŁ290,519
ÂŁ265,969
-ÂŁ24,550
-8.5%
Kensington and Chelsea
ÂŁ1,305,382
ÂŁ1,203,055
-ÂŁ102,327
-7.8%
Great Yarmouth
ÂŁ226,300
ÂŁ209,010
-ÂŁ17,290
-7.6%
St Helens
ÂŁ182,918
ÂŁ169,069
-ÂŁ13,849
-7.6%
City of Westminster
ÂŁ1,045,632
ÂŁ967,277
-ÂŁ78,355
-7.5%
Rother
ÂŁ391,850
ÂŁ362,506
-ÂŁ29,344
-7.5%
Scotland
ÂŁ185,124
ÂŁ195,387
ÂŁ10,263
5.5%
Wales
ÂŁ219,845
ÂŁ214,912
-ÂŁ4,933
-2.2%
England
ÂŁ309,768
ÂŁ309,602
-ÂŁ166
-0.1%
United Kingdom
ÂŁ289,728
ÂŁ291,385
ÂŁ1,657
0.6%
Coal and candy cane housing markets – data v1 : Copy of Results
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About the Author
Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 15 international offices.