Here is everything you need to know about house price growth in Birmingham

House prices have increased more quickly than the national average in Birmingham, according to property website Zoopla.

While the national house price growth is 5.3%, house price growth in Birmingham is 7.4% second only to Nottingham at 7.8%. Last year, the annual house price inflation or house price growth was 8.6% nationally.

However, sales agreed in the West Midlands are down -2% compared to the pre-pandemic years (2017/2019) and lower than the UK average of just 1%.

Across the country, sellers are having to accept an average 4.5% discount to the asking price to achieve a sale - highest for five years as buyers’ market takes hold, according to Zoopla.

Buyers market takes hold

The asking-to-achieved price gap has widened to its largest for five years. While sales volumes have recovered, the average discount to achieve a sale has increased over the last five months and currently stands at 4.5% - an average £14,100 discount per sale. The average UK home grew in value by £42,000 over the pandemic, suggesting sellers are forgoing, on average, 33% of their pandemic gains.

While negotiating down from the asking price was normal practice before the pandemic boom in England, Wales and Northern Ireland, in Scotland, most homes remain marketed as ‘offers over’. Discounts to asking price are larger than in the pre-pandemic years and reflect the rapid transition from a hot sellers’ market - where most buyers had to pay the asking price over much of 2021 and 2022 - to a buyers’ market. This transition to a buyers’ market is accompanied by nationwide repricing as the market adjusts to the reduction in buying power thanks to higher mortgage rates impacting buyer affordability.

Buying power is starting to recover as mortgage rates fall from their 6% highs of late 2022, however even at 4%, the average home buyer has a fifth (20%) less buying power than they did a year ago when mortgage rates were 2%.

Affordable markets

Sales in the Midlands and southern England are up to 9% lower compared to the pre-pandemic period.

Above average house price growth continues in affordable regional towns near larger urban centres such as Oldham, Dudley, Wolverhampton and Worcester where price inflation remains over 8%.