Regional house prices up 1.5 per cent as values fall across the south

House prices in Birmingham's region are still rising, even as values fall across much of southern England, according to the latest figures from the property website Zoopla.

The average home in the region was valued at £239,500 in September, up 1.5 per cent on a year earlier. That compares with an average UK price of £273,100, which is 0.8 per cent higher than a year ago.

A north-south split

The figures show a growing divide. Prices fell by 1 per cent in London over the year, by 0.6 per cent in the South East, 0.5 per cent in eastern England and 0.4 per cent in the South West. In contrast, they rose by 3.2 per cent in the North West and 2.5 per cent in Scotland.

Nationally, around 35 per cent of homes are now in areas where values have fallen over the past year, up from 12 per cent a year ago. Zoopla estimates that 85 per cent of homes in London and the South East are in postcode areas where prices are falling.

Buyers more selective

Zoopla says higher mortgage rates have made buyers more choosy, while the number of homes for sale is up seven per cent on last year, giving buyers more room to negotiate.

Richard Donnell, executive director at Zoopla, said: "The extra cost of mortgages has made home buyers more selective while greater choice of homes for sale has increased the scope to negotiate on price."

"The impact is being felt by sellers in southern England where house price falls are most concentrated as average prices continue to rise across the rest of the country," he said. "There is still demand to buy homes, and those that are well priced and presented are selling just as quickly as last year. Getting the price right from the start is essential."

Nathan Emerson, chief executive of the property professionals' body Propertymark, said the market was becoming "increasingly localised", with buyers focused on value.

What it means for Birmingham

For homeowners in Birmingham, steady growth means their homes are holding their value while prices slip elsewhere. For buyers, the regional average remains well below the UK figure, and more choice of homes for sale gives them a little more bargaining power.

First-time buyers could also get help from the government's new Your First Home scheme, confirmed in today's Budget, which is expected to let eligible buyers purchase selected new-build homes with a deposit of just 2.5 per cent. The Treasury says it will help 70,000 people onto the property ladder.

As always, the averages hide big differences between streets and neighbourhoods, so anyone thinking of buying or selling should look at recent local sales as well as the headline figures.