House prices in the West Midlands rising quicker than London – find out what the average value of a home is in region

And the outlook for the housing market is generally positive, according to Nationwide Building Society, with the Midlands and the north outperforming the south

The average price of a house in the West Midlands currently stands at £250,951, the Nationwide says.

That is three per cent up on this time last year, which is above the UK average rise of just over two per cent.

The average UK house price increased by 0.5 per cent month-on-month in September, following a 0.1 per cent monthly fall in August, Nationwide Building Society said. 

Property values increased by 2.2 per cent annually in September, slightly up from 2.1 per cent annual growth the previous month. 

Across the UK, the average house price in September was £271,995, more than £20,000 higher than in the West Midlands, Nationwide said.

Robert Gardner, Nationwide’s chief economist, said: “Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.” 

He added: “Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”

Wales saw a slight acceleration in annual house price growth to three per cent in the third quarter, up from 2.6 per cent in the second quarter of this year, while growth in Scotland slowed to 2.9 per cent, compared with 4.5 per cent in the previous quarter. 

Mr Gardner added: “England saw a further slowing in annual house price growth to 1.6 per cent, from 2.5 per cent in the second quarter. 

“Average prices in northern England, including the West Midlands, North East, North West, Yorkshire and the Humber and East Midlands, were up 3.4 per cent year-on-year.” 

He said annual house price growth in southern England, including the South West, Outer South East, Outer Metropolitan, London and East Anglia, was at 0.7 per cent, with a “marked softening” in house price growth in the Outer Metropolitan and Outer South East areas. 

Mr Gardner said: “Our most recent data by property type shows that semi-detached properties have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.4 per cent year-on-year. 

“Detached and terraced properties saw similar growth, at 2.5 per cent and 2.4 per cent respectively. However, flats saw a small year-on-year decline of 0.3 per cent. 

“Looking over the longer term, flats have seen noticeably weaker growth than other property types in recent years. For example, over the last 10 years, the price of a typical flat has increased by around 20 per cent, less than half of the rise in the price of terraced houses over the same period.” 

Here are average house prices in the third quarter of this year followed by the annual increase:

Northern Ireland, £215,122, 9.6%

North East, £169,216, 5.1%

Yorkshire and the Humber, £214,359, 3.8%

North West, £222,664, 3.2%

West Midlands, £250,951, 3.0%

Wales, £213,359, 3.0%

Scotland, £189,863, 2.9%

East Midlands, £238,702, 2.7%

East Anglia, £273,945, 1.1%

Outer Metropolitan , £428,405, 1.0%

South West, £306,163, 0.9%

London, £527,694, 0.6%

Outer South East, £337,201, 0.3%

Alice Haine , a personal finance analyst at Bestinvest by Evelyn Partners , said: “While mortgage rates have eased over the past year, following five Bank of England interest rate cuts, the outlook for further reductions remains unclear. 

“Average two and five-year fixed rate mortgages are still hovering around the five per cent mark, which may be comforting for new buyers but broader economic pressures, including sticky inflation and high gilt yields, could limit further improvements.” 

Jason Tebb, president of OnTheMarket, said: “Average prices are being held in check with buyers finding themselves in a strong position, which they are using to negotiate on price.” 

Tomer Aboody, director of specialist lender MT Finance, said: “We are seeing that despite plenty of negativity surrounding current market conditions, buyers are still transacting, although in smaller numbers than historically. Due to less demand, price growth is minimal but still positive.” 

Babek Ismayil, chief executive of home buying platform OneDome, said sellers must be realistic, adding: “Properties listed too optimistically risk stagnating, while buyers who have their finance lined up are in the strongest position to move quickly and negotiate firmly.”