West Midlands Housing Market Report 2023

27/09/2023
(Last Updated: 28/09/2023)
160
4 min read

Average Sale Price

£232,675
(July)

Price Growth

+5%
(Since 2019)

Best Growth

Rugby & Wolverhampton
(Both +1.8%)

Least Growth

Wychavon & Redditch
(-5.7% & -3.9%)
Key Takeaways
  • House prices in the West Midlands have been rising all summer and have almost recovered to their December 2022 peak
  • The West Mids saw YoY growth of 2.6% in July compared to just 0.6% across England & Wales
  • Stoke-on-Trent may be the best 'budget buy' with much lower prices and resilient growth
  • Rugby may be the best premium purchase with stronger house prices and a relatively active market

The housing market of the West Midlands and the country as a whole has been affected by the cost of living crisis. As the base rate seems to be steadying, we can expect the Bank of England to sustain it at around 5% into the beginning of 2024 while inflation comes safely down to land. Hopefully, easing us into a more lively housing market through next year. Sadly for borrowers, it is likely the era of below 1% base rates is over and we are hoping for a return to a reasonable 3% in late 2024 to 2025.

Source: Office for National Statistics (ONS)


Many first time buyers have had to delay plans to purchase their first home, with Halifax predicting the number of national first-time buyers will fall by more than a fifth this year. However, this is weighted much more heavily in the South East, London and East Anglia.

Source: House Price Index (HPI)


The better affordability in The West Midlands may account for house price growth of 2.2% YoY in July, where England & Wales collectively saw prices rise by a measly 0.6%. The yearly percentage increase has remained stronger in the West Midlands compared to the rest of the country throughout the past 12 months. As of the latest data we can see house prices in the West Midlands are again on the rise.


Source: House Price Index (HPI)


With its resilience under the current difficulties and lower house prices in certain locations, the West Midlands may be a brilliant opportunity for first time buyers and property investors alike. Snap up a 2 year deal while mortgage rates recover and by the time you can switch rates, we predict the market will be much more comfortable.

Are you buying or selling in the West Midlands housing market?

With more affordable house prices which are currently holding their value better than the rest of the country, the West Midlands is an attractive region to buy property.




What our survey revealed about homebuyers
Our survey, conducted by YouGov, reveals the top challenges faced homeowners when buying their most recent property, plus the true costs of defects when skipping a home buyers survey.


What are homebuyers looking for?

House prices in the West Midlands

There is a significant spread across the county with the highest average house prices in the picturesque medieval town of Stratford-on-Avon at £385,360, compared to Stoke-on-Trent, heart of Britain's historic pottery industry, at just £143,805. Other areas where you can buy a home for less are the twelfth century market town Newcastle-under-Lyme (at £199,385) and the Borough of Sandwell (at £202,810).

Source: House Price Index (HPI)


In terms of return on investment, we can see that the average house price in Stoke-on-Trent is not climbing as fast as some other towns in the region, long term. But, it also appears to have been least affected by the nationwide dips which coincide with the pandemic and the cool-off we saw this summer as buyer activity slowed. Stoke may be an excellent opportunity to purchase a more affordable home in a steady and resilient market.


Source: House Price Index (HPI)


Where in the West Midlands is the market moving?

Sales volume has been falling across the board since the disastrous minibudget 12 months ago, this is relatively consistent all across the West Midlands. The good news is the market is still moving more than it was at the peak of the pandemic and during the 2008/2009 crash. We are already seeing an uptick following the typically quieter summer holidays and expect mortgage rates to remain steady a little longer and then begin to return to reasonable levels, with more market movement to follow.

Source: House Price Index (HPI)


Bigger cities have seen the steepest reduction in market movement overall. Redditch, protected by the green belt, and affluent Rugby, with its famous school, appear to be the least affected. For those with a bigger budget, Rugby may be an ideal place to buy, with strong house prices and a relatively active market.

 
Caragh Bailey, Digital Marketing Manager
Written by:

Caragh is an excellent writer in her own right as well as an accomplished copy editor for both fiction and non-fiction books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey and mortgage related articles.

Andrew Boast of Sam Conveyancing
Reviewed by:
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
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