Property prices in the West Midlands are growing by 6 per cent a year, outstripping all other parts of the country, says the Office for National Statistics. By contrast, prices are tumbling by 0.3 per cent in London. And in the previously booming regions of the South-East and East, they are rising by just 1.7 per cent and 2 per cent respectively.
Seven of the top ten local authority areas in the country for house price rises are now in the Midlands, including East Staffordshire and Newcastle-under-Lyme, also Staffordshire, Cannock, Wolverhampton, Daventry in Northamptonshire and Broxtowe, Nottinghamshire. The prediction is that prices will rise by another 3 per cent in the Midlands next year compared to just 1.5 per cent across the UK. In the summer, Stratford-upon-Avon, Warwickshire, was the country’s top town for house price growth. Other parts of the Midlands which have seen double-digit growth in 2018 include Harborough and Blaby, both in Leicestershire, Rugby in Warwickshire, Wellingborough and Kettering in Northamptonshire and Rushcliffe in Nottinghamshire.
The Midlands’ economy has been boosted by big firms opening warehouses and offices in the region. HSBC bank, for example, moved its UK head office to Birmingham, while food and drink firm Nestlé has announced it will build a new £55 million distribution centre in Leicestershire. HS2, a high-speed railway which will connect London, Birmingham, the East Midlands, Leeds and Manchester, has also boosted prices. It is set to open between 2026 and 2033, but its impact is already being felt in the property market. HS2 will cut the journey time between Birmingham and London to just 45 minutes. This should make it easier for workers to commute to the capital, which, in turn, should encourage more businesses to open new offices in the Midlands.
Why you need to buy and Invest in Wolverhampton now
Figures show there has already been an exodus of workers from London to the region in search of more affordable housing. Most simply find new jobs when they move. But experts say faster broadband and a rise in flexible working has allowed many to keep their London jobs and work from home. Improved rail and road links mean some workers travel hundreds of miles each day to the capital and back from their Midlands homes. Even without HS2, it already takes only about an hour to get to many Midlands towns from London by train. As you can imagine the knock on effect is medium to long term Wolverhampton property prices will rise as London wages are spent on Wolverhampton homes.
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