The traditional north-south property divide has been upended as northern areas record strong price gains while the south sees sluggish growth, according to Your Move.
Its September house price index showed annual price growth holding steady at 3.3 per cent outside of London and the south east.
In contrast, Your Move said prices fell 0.7 per cent year-on-year in London and edged up by just 1.8 per cent in the south east.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “Despite slowing price growth, particularly in the southern regions, the north continues to report positive results.
“The future, however, will rely heavily on stock availability, and with housing clearly on the political agenda, what government support may be offered to those looking to buy and who will ultimately influence market activity.”
The east of England recorded the strongest growth, with gains of 4.5 per cent year-on-year on the back of a booming market in areas such as Bedfordshire (up 9.3 per cent annually).
Meanwhile the south west (4 per cent), the north west (3.9 per cent) and the East Midlands (3.7 per cent) also posted strong annual growth figures.
Price inflation has picked up in Wales as transactions hold steady, with the annual growth rate rising from 2.1 per cent to 2.7 per cent between August and September.
The recent trend for stronger price gains in the north is backed up by other data such as Hometrack’s UK Cities house price index, which showed Manchester at the top of the growth tables and solid increases in other areas away from the capital.
Prices fell for the sixth consecutive month across England and Wales as a whole, declining by 0.1 per cent and taking the annual growth rate to just 1.3 per cent.
The average price at the end of September in England and Wales was £297,287 - up £3,890 on the same month last year.
It came amid a 20 per cent fall in the number of transactions compared to the same month in 2016.
Bob Riach, principal at Scunthorpe-based Riach Financial, said: “We are seeing now in our area clients are thinking about moving, coming to see what they can afford to move on and selling within a matter of weeks. That is the first-time buyer to mid-range.
“We are busier than ever, but I don’t know what is causing it.
“A couple came to see me a week ago and wanted to know what they could borrow. That was last Tuesday, and they have sold already. I have not seen that before.”
simon.allin@ft.com
