GetAgent first seemed on the areas of the UK market which have underperformed through the pandemic when in comparison with the nationwide benchmark for home worth progress, then checked out which of those underperforming areas has began to construct momentum during the last yr, outperforming the nationwide annual fee of home worth progress.
The analysis reveals that for the reason that begin of the pandemic (Jan 2020), UK home costs have climbed by an enormous 23.5%. Nevertheless, a minimum of 208 native authorities have failed to satisfy this nationwide benchmark and have largely underperformed through the pandemic property market growth.
The Metropolis of Westminster is the one space to have seen a decline at -6.4%, however Camden (0.3%) and the Metropolis of Aberdeen (2.3%) have additionally carried out notably poorly.
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However whereas the market has been shifting at a fee of knots, there are actually indicators that it’s beginning to gradual, with mortgage approvals returning to pre-pandemic normality and home worth progress starting to gradual.
In actual fact, during the last yr, the typical UK home worth has elevated by simply 2.2%, which is a significantly decrease fee of progress when in comparison with the broader pandemic interval.
Nevertheless, of these 208 areas which have trailed beneath the nationwide common through the pandemic, 78 have registered a far greater fee of progress than the nationwide common within the final yr, suggesting they might properly be the nation’s subsequent up-and-coming hotspots for home worth progress.
Epping Forest seems to be tipped to be the nation’s subsequent home worth hotspot, with progress hitting 7.6% within the final yr.
Inverclyde has additionally seen one of many strongest performances, with home costs climbing 7.4% yearly, together with Rutland (7.1%), Woking (6.5%) and Copeland (5.9%).
Different areas which have largely underperformed all through the pandemic however have seen above-average ranges of annual home worth progress embody Sevenoaks (5.8%), North Hertfordshire (5.7%), West Devon (5.4%), Hackney (5.4%) and Exeter (5.2%).
Colby Quick, Co-founder and CEO of GetAgent.co.uk mentioned, “We’ve seen an exceptional fee of home worth progress for the reason that begin of the pandemic and that is but to subside, though we are actually seeing indicators that the market is beginning to return to normality.
“After all, not all over the place has benefited to the identical extent and there are an entire host of areas which have actually underperformed through the current housing market growth.
“Nevertheless, during the last yr, we’re now seeing indicators that a few of these underperformers are ascending by means of the ranks to put up some very robust charges of annual home worth progress whereas the remainder of the market has shifted down a gear or two.
“These are those to look at, as these native markets merely haven’t overinflated to the identical diploma and so there’s loads of potential for home costs to climb whereas the remainder of the market strikes at a much more measured tempo.”