Govt Figures on UK House Prices in April: a Regional Breakdown

Though the latest release of the government's UK house price index was very positive; showing the annual and quarterly rate of decline slowing and a 1.1% monthly rise, the picture is not so positive everywhere.

In Northern Ireland the annual rate of house price decline accelerated from 16.1% to 22.8%. The annual rate of decline also accelerated in the North East of England by 1.3% and the North West of England by 0.4%.

Everywhere else the decline is indeed slowing. The top five regions in terms of a slowing annual rate of decline between March and April were as follows:

1. West Midlands, slowed by 2.6% from 12.7% to 10.1%
2. Yorks and Humberside, slowed by 2.1% from 12.5% to 10.4%
3. Wales slowed by 1.7% from 13% to 10.3%
4. The south west slowed by 1.1% from 14.4% to 13.3%
5. and the south east slowed by 0.8% from 14.5% to 13.8% between March and April

The rate of decline is slowing because supply is tightening or is very tight at a time when buyer activity is increasing. In the South West though, supply is the main driving factor according to Joseph Harwood director of Gloucester property investment firm Rock Star Investment Gloucestershire, quoted in a blog on the Gloucester property market.

"In the case of Gloucester it has been interesting. The lack of supply is the predominant factor in the current stabilisation as any increase in buyer activity has been nominal. In the last week supply has been picking up again, which will put the current stabilisation at risk. More price falls won't harm us anyway, as they increase the rental yields we can offer our clients," he said.