Property prices in England and Wales rose by 0.6% in February, but annual rate of growth slipped to 2.4%, according to the latest index released by Your Move.
This rate of annual growth was the slowest since 2013, though some parts of the country are seeing larger growth.
Rise and Falls
The average price of a property in England and Wales is now £297,832. The strongest price growth year-on-year was recorded in Merseyside and Birmingham, with prices here up by 5% and 6.2% respectively.
However, London and the South East appear to be pulling the national average down. When these regions are removed from the calculations, annual growth is 3.1%.
Despite a strong performance from the East of England, Merseyside saw a new peak price during January. This, according to the report, was down to heavy demand from young professionals and students.
Birmingham also enjoyed peak rises, with the city experiencing new regeneration, such as the new tram line and road connections. Property prices here were up 0.4% month-on-month and 6.2% year-on-year.
Oliver Blake, Managing Director of Your Move and Reeds Rains, feels it has been a positive start to 2017. Blake observed: ‘We’ve seen the strongest house price growth in a year, the emergence of the promised Northern Powerhouse and the first tentative signs of a recovery in the highest priced properties in London.’
Blake went on to point out that the strong start to the year predicted for house prices is yet to materialise in the figures. He feels this is due to them suffering from comparison to prices driven by last April’s impending Stamp Duty rise.
‘When these drop out of the calculation in a couple of months, though, we hope to see the more positive trend. As the recent English Housing Survey shows, the market is supported by increasing numbers of first time buyers and rising transactions in the last year. The increasing contribution of a strong North Western market centred on Manchester, meanwhile, gives hope for more balanced, if modest, price growth going forward,’ Blake added.