Coronavirus: Yorkshire sees largest increase in property asking prices in UK

Lucy Harley-McKeown
·2 mins read
City scape of tightly arranged row houses, Whitby, Yorkshire, UK
Row houses in Whitby, Yorkshire, UK. Photo: Getty

Yorkshire has seen the largest increase in property asking prices since the housing market reopened compared with other regions.

The average asking price for a two-bed flat in Yorkshire rose by 10% to £153,354 ($199,703) in the week beginning 28 September from £139,404 in the week starting 18 May, according to new figures from property consultancy Knight Frank and data from OnTheMarket.

Asking prices for two-bedroom flats in London fell by 4% over the same period, and was the only area where prices have fallen.

The increase was similar for three-bed houses, with Yorkshire seeing the biggest rise over the same period. Prices rose 8.4% to £186,045.

The housing market has seen people shift away from inner city living, as people searched for properties with more outside space amid widespread coronavirus lockdowns.

READ MORE: Coronavirus: UK house prices at record high after biggest monthly leap in 16 years

Areas such as the Cotswolds, Ascot and Sevenoaks have risen in popularity, but not to the same degree as Yorkshire and The Humber.

The shift away from the south of England suggests some buyers are prepared to go further afield for better value as they strike a new work/life balance, Knight Frank said.

Watch: Why are house prices rising during a recession?

“The market has been so buoyant due to a huge influx of demand from the south of the country,” said Emma Hodgson, head of sales at Knight Frank’s Harrogate office. “Whereas the south-west of the country has a pull as a tourist destination, many buyers are coming to Yorkshire due to family connections.”

Hodgson said half of all buyers she is dealing with are from the south compared to less than a third this time last year.

The research also found that Yorkshire was boosted by its relative value compared with other parts of the country. An average price in July of £171,325 compared with £325,734 in the south-east and £263,353 in the south-west.

The numbers come alongside news that most UK estate agents and property surveyors expect house prices to be higher in a year’s time despite the economic crisis, according to a survey.

New figures suggest Britain’s recent housing market boom shows no signs of running out of steam and a continued flight to more rural areas, with growing coronavirus infection rates and lockdown restrictions failing to curb the rush to move.

The number of enquiries by potential buyers, agreed sales and new properties placed on the market all remained “strong” in September, according to a leading industry poll by the Royal Institute of Chartered Surveyors (RICS) last week.