Scotland and Northern Ireland emerge as 2023 house price winners

house pricesScotland and Northern Ireland outshone England and Wales in terms of house price inflation in 2023, with both regions experiencing “strong gains”, according to analysis by Benham and Reeves.

The London lettings and estate agent looked at house price growth on both a regional and local authority level. The research found 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 the analysis found that house prices fell by 1.1%%, and even more so Wales, where they dropped by 2.4%, or an average of £5,367.

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%).

The agency said 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 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.

Some English regions performed well, according to the analysis, 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%).

Super prime London appeared to be losing some of its appeal, however, as the City of Westminster saw prices drop by 13.9% year-on-year, amounting to a loss of £145,687.

In Wales house prices fell by 2.4% on average, the analysis found. 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 £17,847 in cash terms.

Marc von Grundherr, director of Benham and Reeves, 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,” he added.


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