Recent research by GetAgent.co.uk, an estate agent comparison site, highlights the West Midlands as the standout performer in Britain’s housing market since the Bank of England began increasing interest rates in December 2021. This assessment is based on the analysis of seasonally adjusted house price growth in various regions.
Seasonal adjustment in house prices is a method that accounts for the property market’s seasonal variations, such as the Christmas period lull, to provide a clearer picture of market health.
In non-seasonally adjusted terms, the North East initially appeared as the leading region with a 10% increase in house prices since December 2021. However, once seasonally adjusted, this figure slightly drops to 9.6%, positioning the North East second in terms of market performance. The West Midlands, with an initial increase of 9.4%, sees its growth rate rise to 9.7% after seasonal adjustment, making it the region with the highest increase.
The study also notes that the West Midlands, alongside the East Midlands and East of England, experiences the least seasonal influence on property markets. In the East of England, both the general and seasonally adjusted rates of house price growth have remained steady at 5.3%, indicating no seasonal impact. The East and West Midlands are unique in that their seasonally adjusted house price growth outpaces general growth, with the East Midlands seeing a 0.5% higher increase and the West Midlands a 0.3% higher rate.
Colby Short, Co-founder and CEO of GetAgent.co.uk, explains the significance of seasonal influences, stating, “It’s an important factor to consider, particularly when pricing your home for the market and seasonally adjusted market data can give you a far more accurate picture of what your home is likely to achieve.” He also points out the regional disparities in seasonal influence, with Scotland’s seasonally adjusted rate of house price growth lagging behind its general rate by 2.1%, compared to a 0.5% higher rate in the East Midlands.