House prices across Great Britain continued to rise in July, though growth momentum is softening in the regions that have led the market over the past year. E.surv's latest House Price Index puts the average house price at £329,500, with annual growth of 1.7%.
Yorkshire and the Humber recorded the strongest regional performance, with prices up 4.0% year on year. The North West followed at 3.6%. Both regions retain their position at the top of the national rankings, but quarterly growth in each has slipped below the average pace recorded over the past 12 months.
The same pattern runs through parts of northern England, the Midlands and Wales. Prices in those areas continue to rise, but the latest quarterly figures indicate the pace is easing after a strong run.
"Momentum is easing in the regions that have led the market this year," said Rob Owens, head of research at e.surv. "Yorkshire and the Humber and the North West remain the strongest-performing regions, underlining the ongoing appeal of more affordable markets outside the South East. Recent growth is now running below the pace seen over the past 12 months, so the gap is narrowing from the top rather than because weaker markets are catching up."
"That is happening against a backdrop of higher borrowing costs and affordability pressures, and the same pattern is visible across northern England, the Midlands and Wales, as well as in several larger cities. The latest data shows house prices are still rising across these areas, but the pace is becoming more measured than earlier in the year."
At city level, the moderation is visible across Sheffield, Liverpool, Birmingham, Newcastle and Bristol. Leeds and Manchester are also easing, though the slowdown there is less pronounced.
"Overall, northern England remains Britain's house price growth leader, but momentum is now easing at the top of the market," Owens added.
