Yorkshire house prices set to grow in 2018
House prices in Yorkshire will grow by 1.1% in 2018, despite significant slowdown in the market, according to research from KPMG.
Houses price growth is expected to have stalled in 2017 to 1.1% across the region, from 4% in 2016, as house hunters brace themselves for Brexit uncertainty and household income is squeezed, but will pick up gradually from next year.
The forecasts, which are part of KPMG Economics’ regional house price study, have been calculated based on regional housing markets, considering short and long-term economic factors.
Despite the loss in momentum in 2017, KPMG expects the Yorkshire market will bounce back to 1.1% next year before reaching 2.5% in 2019. The model predicts growth of 3.2% in 2020, 3.9% in 2021, before becoming the third fastest growing market in the UK with 4.4% growth in 2022.
According to industry data, the region is one of the most affordable in the country with a price to income ratio of 3.7x for first time buyers.
Giles Taylor, head of property and construction at KPMG in Yorkshire, said:
“House price growth in Yorkshire has suffered in the short-term, but the market is holding up relatively well and is likely to return to strength in the coming years. Of course, there are many differences between property markets across towns and cities and types of housing stock within the region, but prices are generally increasing. It is also encouraging that the region remains one of the most affordable areas in the country.
“Despite the ongoing uncertainty over Brexit and the bite on household income, the projections also reflect positive trends in the region’s employment, population and economic activity, particularly in our major cities where demand is booming for quality accommodation. As job creation continues, we expect a sustained upward pressure on prices.
“Anecdotally, housebuilders are reporting that they continue to show good footfall through their sites and reservation levels are very good. In addition, some of the players in the supply chain are still seeing record months of trading. That being said, those with longer term visibility of their pipeline are starting to tell us that they can see a potential slowdown in the distance.”
