Yorkshire Property Market 2024: Are house prices rising?

Over the past four years, the Yorkshire property market has mirrored the complicated and varied patterns seen across the UK, with certain areas enjoying significant increases in housing prices, while others have faced declines.

But, in a surprising twist to the prevailing national housing market narrative, the Yorkshire property market is showing resilience, according to recent data from Rightmove.  While the broader UK sector grapples with falling prices, Yorkshire and the Humber are charting a different course.

Are housing prices rising in Yorkshire?

From 2020 to 2024, the Yorkshire property market has shown a patchwork of growth patterns. 

The overall average price of properties in Yorkshire was £234,212, indicating a complicated market movement with both upward and downward trends in different areas. 

The majority property transactions in Yorkshire involved semi-detached houses, which sold for an average price of £229,212. This figure, while representative of a significant portion of the market, sits just below the overall average, suggesting that semi-detached homes are among the most affordable options for homebuyers in Yorkshire. 

Terraced houses, another popular choice, sold for an average of £168,018, offering an even more budget-friendly option. On the higher end of the market, detached properties commanded a premium, fetching an average price of £403,507, reflecting their appeal to a segment of buyers looking for more space and privacy. 

The overarching trend in Yorkshire’s property market shows a slight decrease in sold prices compared to the previous year, with a 2% decline. However, when viewed in the context of a longer timeline, prices have actually seen a modest increase of 1% compared to the peak in 2021, which was £231,569. 

This incremental rise over a two year period suggests a stabilising market that, despite short-term fluctuations, is maintaining its over time. While the last year saw a slight downturn in property prices in Yorkshire, the broader trend over a longer period indicates a gradual increase. 

This suggests that while house prices are not rapidly rising, they are holding steady with modest growth when viewed over a multi-year horizon. The variations in price across different types of properties also highlight the diverse options available in Yorkshire’s housing market, catering to a range of preferences and budgets.

What’s happening to the Yorkshire property market?

The Yorkshire property market demonstrated notable resilience in 2023, despite a downturn in transactions compared to 2022. This period was marked by fluctuating mortgage rates, which initially made buyers cautious.

However, the decision to maintain interest rates in December signalled a stabilising market, fostering optimism for 2024. This stability is expected to fuel competition among lenders, ultimately benefiting buyers. 

There’s a shift towards pragmatism among both buyers and sellers. Success in this market hinges on realistic pricing and effective presentation of properties, coupled with the expertise of estate agents well-versed in the local market. This realistic approach is the key to sales.

Many potential buyers, previously hesitant, are now motivated by the prospect of more affordable mortgages and a wider variety of properties. This renewed condense is set to invigorate the market in 2024. 

Tim Bannister, Rightmove’s Director of property Science, notes that despite the usual seasonal trends, the recent drop in prices indicated that sellers are heeding agents’ advice to set competitive prices. 

The uncertainty that clouded the beginning of 2023, a consequence of the Autumn mini-Budget aftermath, led to reduced market activity. High mortgage rates have strained buyer affordability throughout 2023, a trend that may extend into 2024. 

Nonetheless, the market is heading into the new year with greater stability and certainty. The 1.1% annual decrease in asking prices underscores the market’s unexpected resilience, defying earlier predictions.

Which area in Yorkshire are properties rising?

Certain areas like Leeds and Harrogate have seen a notable rise in housing prices, driven by various factors including economic development, infrastructural improvements, and a growing demand for residential properties.

House prices in Harrogate

Harrogate has emerged as a standout performer within the Yorkshire property market. Since pre-pandemic levels, the average house price in this spa town has increased by an impressive 12% since 2021, outpacing many other regions in yorkshire. 

This growth can be attributed to Harrogate’s appeal as a desirable living destination, offering a blend of urban amenities and natural beauty. The area’s strong local economy and connectivity to major cities like Leeds and York also contribute. 

One lesser spoken fact, is Harrogate is a gem for starting families as it’s in commutable distance to some of the North’s finest schools, Yorkshire dales and it is in very close proximity to Menwith Hill. 

For property investors, Harrogate presents a lucrative opportunity with healthy potential yields driven by its ongoing popularity and relatively high rental demand. 

House prices in Leeds

Leeds has also seen a significant increase in property values, especially in postcodes like LS9. This growth is fueled by Leeds’ evolving role as a key business and cultural hub in the North of England, with ongoing regeneration projects and a booming tech sector.

The city’s diverse economy and student population make it an attractive prospect for investors seeking a mix of short-term rental yields and long term capital growth.

Are housing prices going down in Yorkshire?

Despite areas like Leeds and Harrogate being pockets of growth, not all areas in Yorkshire have experienced an upward trajectory in property values.

Which area of Yorkshire saw the largest changes in house values?

Doncaster house prices

Doncaster has witnessed a marginal decrease in average property prices since 2020. The decline can be linked to a combination of economic challenges and a slower pace of development compared to other Yorkshire cities.

While this might appear less favourable to sellers. It offers opportunities for buyers and investors looking for more affordable entry points into the Yorkshire property market. 

Bradford house prices

Bradford has seen varied performance across its postcodes, with some areas experiencing a drop in property values. The average Bradford house price is a little over £181,000 with house prices sitting even since the 2021 peak.

The decline in certain areas could be due to factors like local economic issues and infrastructural challenges. However, this also means potential for regeneration and growth, offering long-term investment opportunities in the Yorkshire property market. 

What is the housing market forecast for Yorkshire?

The National Association of Property Buyers has forecasted house price rises in many UK regions for 2024, and Yorkshire and the Humber appears set to follow this trend. 

According to Jonathan Rolande, a spokesman for the association, the overall UK property market, including Yorkshire and the Humber was initially expected to experience house price falls ranging between 1.5% and 4%. However, Rolande believes these predictions are increasingly off the mark. 

“In fact, I believe many towns and cities outside of London, including those in Yorkshire and the Humber, can expect to see price rises every month throughout 2024,” says Rolande. 

He attributes this optimistic outlook to two main factors: the persistent shortage of available property and the government’s ‘low key’ plans for house building in 2024. 

Looking ahead, the Yorkshire property market shows different trajectories for various cities:

• Doncaster is expected to stabilise, with potential for modest growth.

• Leeds is anticipated to continue growth, particularly in developing areas.

• Halifax is likely to see a gradual increase in property values.

• Sheffield is projected to have steady growth, driven by urban regeneration.

• York is expected to maintain its robust market with healthy demand.

• Bradford is forecasted to have a varied performance, with potential growth in select postcodes. 

Yorkshire and the Humber is known for its diverse range of urban and rural landscapes, has seen areas like Halifax in West Yorkshire bucking the trend with house price rises. 

Rolande believes that areas in Yorkshire and the Humber will continue to perform well in 2024 due to the limited property availability and lack of a robust roadmap for addressing this through housebuilding. 

While London and parts of the South East, including Essex and Kent are expected to find it challenging to secure house price rises, Yorkshire and the Humber’s market seems poised for a more positive trajectory. 

Jonathan Rolande notes that these traditionally high-growth areas are now beginning to see a flattening and fall in prices, contrasting to the potential growth in areas like Yorkshire.

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