º£½ÇÊÓƵ house prices are experiencing a shift, with the capital seeing a decline while the North West and Yorkshire witness increases. London's house price to earnings ratio stands at 8.22, one of the highest in the country, compared to a national average of 6.55.
Data from Halifax indicates that seven out of ten areas with the lowest house price growth for 2023 to 2024 are in London, making it the city with the least growth this year. For instance, Ealing saw a drop of 4.9 per cent, while Southwark experienced a 4.8 per cent decrease, as reported by .
"The high asking price for London properties means house prices have fallen in several boroughs – perhaps a reflection that the relatively high cost of properties is stretching affordability for buyers," commented Amanda Bryden, Head of Mortgages at Halifax. The South East also trails behind, with a modest increase of 1.8 per cent against the º£½ÇÊÓƵ's overall 6.3 per cent.
"Much like London, first-time buyers won’t find a bargain here, as the slow growth is likely a consequence of the already-high property prices, relative to the national average," added Bryden.
In contrast, Greater Manchester is seeing a surge in house prices. Oldham, on the outskirts of Manchester, has seen an impressive 14.6 per cent rise this year, reaching £250,546 – a year-on-year growth of £31,951.
Nearby Bolton also enjoyed a significant increase of 12.9 per cent, bringing the average house price to £252,070.
Bryden attributed the growth in these areas to a national rebalancing of prices. He noted that more affordable areas like Oldham and Bolton, which still fall below the national average, are increasingly appealing to first-time buyers.
Despite this, London remains the most expensive city for housing, with the average house price standing at £523,000 in July 2024, compared to £234,000 in Manchester. Demand in Slough, famously known as the setting for The Office, also surged, with first-time buyers making up seven out of ten house purchases.
House prices in the area rose by just under 15 per cent, marking the second-highest growth in the º£½ÇÊÓƵ. Interestingly, none of the top ten areas with the fastest house price growth this year were located in major cities.
