Leeds property: Yorkshire house prices soar to highest levels since 2006 with Manning Stainton seeing huge increase of first-time buyers
Yorkshire has seen the highest rise in house prices since 2006, according to the Halifax House Price Index.
House prices in the region increased by 10.2 per cent annually in May, to reach £183,404 on average.
Across the country, prices increased by 9.2 per cent, reaching a new record high of £261,743 on average
Halifax said annual house price inflation was at its strongest level in nearly seven years.
Russell Galley, managing director at Halifax, said: “House prices reached another record high in May, with the average property adding more than £3,000 (1.3 per cent) to its value in the last month alone.
“A year on from the first easing of national lockdown restrictions, and the gradual reopening of the housing market, annual growth surged to 9.5 per cent, meaning the average UK home has increased in value by more than £22,000 over the past 12 months.”
He said the stamp duty holiday has boosted activity.
Mr Galley continued: “For some homebuyers, lockdown restrictions have also resulted in an unexpected build-up of savings, which can now be deployed to fund bigger deposits for bigger properties, potentially pushing property prices even higher.
“Whilst these effects will be temporary, the current strength in house prices also points to a deeper and long-lasting change as buyer preferences shift in anticipation of new, post-pandemic lifestyles – as greater demand for larger properties with more space might warrant an increased willingness to spend a higher proportion of income on housing.
“For Wales and the North West, these are the biggest percentage gains since April 2005, and for Yorkshire and the Humber since June 2006.
“The south of England, traditionally the driving force of national house price performance, is for once lagging somewhat behind the rest of the country.”
Mark Manning, of Leeds-based estate agency chain, Manning Stainton, said the company has been an increase in demand from first-time buyers.
Mr Manning said: "We continued to experience record levels of activity in May, which although partly linked to the stamp duty holiday, has also being fuelled by a real shift in people’s priorities. People now value their homes much more than pre-pandemic, and I think this is a permanent shift.
"This means that even when the stamp duty holiday begins to be wound down at the end of this month, the market will continue to perform strongly.
“And with more 95 per cent mortgages being released weekly, we’re also seeing a continued increase in the number of first-time buyers entering the market, which will further fuel activity higher up the chain and keep the market buoyant.”
Here are average house prices followed by the annual increase in May, according to Halifax:
– East Midlands, £213,481, 9.2%
– Eastern England, £302,158, 6.5%
– London, £509,621, 3.1%
– North East, £150,401, 6.9%
– North West, £199,441, 10.6%
– Northern Ireland, £160,641, 9.1%
– Scotland, £183,351, 7.4%
– South East, £351,437, 6.1%
– South West, £266,182, 8.6%
– Wales, £190,345, 11.9%
– West Midlands, £220,998, 9.0%
– Yorkshire and the Humber, £183,404, 10.2%