Nationwide: Midlands price growth falling behind

House price growth in the Midlands is lagging behind the rest of the country, according to research out today.

Nationwide's regional house price survey reveals the West and East Midlands saw a rise of 0.2 per cent in the last three months on the previous quarter.

This compares with an average rise of 1.6 per cent across the UK, led by Northern Ireland and London's increases of 3.6 and 3.4 per cent respectively for the same period.

The survey finds the average UK property was worth £184,131, up from 9.3 per cent compared with the same period last year.

"The East and West Midlands regions came at the bottom of the house price growth rankings in the second quarter, with prices growing at around half the UK average, at annual rates of 4.8 per cent and 4.6 per cent respectively," commented Fionnuala Earley, Nationwide chief economist.

She added: "Northern Ireland topped the rankings of fastest house price inflation for the 10th consecutive quarter. Prices increased at an annual rate of 42.6 per cent in the third quarter, but Northern Ireland was also the region to see the largest slowdown in house price growth, moderating from a staggering 54 per cent in the second quarter.

"London saw the second fastest rate of growth in the UK at 16.5 per cent, followed by Scotland at 12.2 per cent and then the capital’s immediate neighbours of outer metropolitan and outer South East at 11 per cent and 10.1 per cent respectively. London also saw the average house price increase above £300,000 for the first time."

Towns with largest annual house price growth
1 - Belfast: up 50 per cent
2 - Aberdeen: up 35 per cent
3 - Sheffield: up 17 per cent
4 - Bristol: up 17 per cent
5- Reading: up 15 per cent

Towns with smallest annual house price growth
1 - Newcastle: up one per cent
2 - Birmingham: up two per cent
3 - Northampton: up four per cent
4 - Nottingham: up four per cent
5 - Coventry: up four per cent