Midlands and the NW set to overtake London for growth in house prices

THE Midlands and the North West of England are poised to outperform London for cumulative percentage house price growth since prices reached a low point after the 2008 financial crash, according to a housing market forecast.

- By VICKY SHAW

Overall, house prices are expected to record “modest” percentage growth next year, rising by 2.5% annually across Britain in the fourth quarter of 2026, according to Hamptons.

But price growth in London is expected to be flat, with a 0.0% annual change in the fourth quarter of 2026 as the market digests tax changes, the property firm said.

It expects to see small price falls in the £1.9 million-plus house price bracket, which it said is likely to be offset by price growth in the mainstream market.

In the Budget, the Government announced a high value council tax surcharge in England on homes above £2 million from April 2028.

There will be four price bands with the surcharge starting at £2,500-a-year for properties worth more than £2 million, and rising to £7,500 for properties worth more than £5 million.

Prime country markets saw strong house price growth following the coronavirus pandemic, during the “race for space”.

But Hamptons said properties above £2 million could see around a 5% price correction, but this is expected to be a one-off adjustment rather than a prolonged decline, as markets...stabilise.