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Why It Matters for Sub-£125k Investors
Additional Market Evidence
Summary
If you’re investing with a budget of under £125k, the North West remains one of the best-performing and most affordable parts of England. You benefit from low entry prices, growing demand, capital growth outpacing much of the country, and strong rental yields



“Average house prices showed little movement in April, edging down by just -0.1% compared to March, with the typical property now costing £299,313. The pace of annual growth also eased to +0.4%.
“After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook. In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates – a shift that has already pushed up borrowing costs for many buyers.
“This understandably leads to more caution among some households, with the cost-of-living once again front of mind and extra thought being given to planned property moves.
“Even so, the housing market continues to display the resilience that has been its hallmark in recent years. While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.
“Another important factor is that the majority of existing homeowners are on fixed-rate mortgages, meaning they are largely insulated from short term changes in interest rates.
“A slower pace of house price growth may be disappointing news for existing homeowners. However, for those looking to step onto the property ladder, stable prices are helpful, even if higher mortgage rates mean affordability remains stretched. The average price paid by firsttime buyers has fallen slightly to £238,908, its lowest level so far this year.”
Amanda Bryden, Head of Mortgages, Halifax,

Regional differences in house price performance have become more pronounced, with a clear divide between the northern and southern parts of the UK. House prices continue to vary significantly by region and nation, with stronger growth in the North and more subdued conditions in the South.
In England, stronger price growth remains concentrated in northern regions. The North East saw prices rise +4.5% over the year to £183,445, while the North West recorded annual growth of +3.4%, with the average home now costing £248,945.
By contrast, the southern markets continue to see prices fall. The South East led declines, with prices down -2.0% year‑on‑year to £383,044, while London saw average values fall by - 1.4% to £536,051.


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