House prices in northern England could receive a major boost under Prime Minister Andy Burnham, according to property experts.
The trend has already begun, with the north outperforming much of the South, raising expectations of a so-called “Burnham bounce” if government investment increases.
Jonathan Hopper, chief executive of Garrington Property Finders, said a large injection of public spending into northern England could push house prices even higher.
He coined the term “Burnham bounce” to describe the potential impact, saying: “A huge injection of government spending into the north could create a Burnham bounce that accelerates northern price growth further.”
Mr Hopper said the divide between the North and South could be “turbocharged by a Prime Minister Burnham”, with northern property markets already pulling further ahead.
His comments come after new figures from Nationwide showed house prices were unchanged across the UK in June, leaving the average property worth £277,484.
Annual house price growth edged up to 2.2 per cent, while northern England, Scotland and Wales all recorded stronger annual growth during the second quarter than they had at the start of the year.
The West Midlands experienced the most dramatic shift in fortunes, with yearly price increases jumping from zero to 3.2 per cent between the first and second quarters.
Northern Ireland continued its strong run with an 8.6 per cent surge in values.
Ian Futcher, financial planner at Quilter, noted that “the outer South East saw the weakest growth in the second quarter, with house prices rising by just 0.1 per cent.”
The capital maintained its position as the strongest performer in the south, though growth dipped slightly from 1.7 per cent to 1.6 per cent compared with the previous quarter.
Mr Hopper offered some encouragement for central London, observing that “the prolonged slide in average prices is over.”
House prices in northern England could receive a major boost under Prime Minister Andy Burnham
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GETTYHowever, the difficulties plaguing the capital have now extended outwards to surrounding areas and the commuter belt serving the Southeast.
An oversupply of properties in these locations is suppressing values and giving purchasers considerable leverage.
“Even in highly desirable areas buyers are often able to demand – and get – significant price reductions,” Hopper explained, adding that those unconvinced a property suits them perfectly “won’t hesitate to walk away.”
Three key factors are driving current market conditions, according to Mr Hopper: elevated borrowing costs, cautious purchasers, and buyers’ belief that time and options favour them.
Although mortgage rates have softened recently with signs of further reductions ahead, the additional expense of financing remains a significant hurdle for those reliant on loans.
Mr Futcher highlighted that geopolitical tensions in the Middle East have weighed heavily on market momentum, affecting energy costs and inflation while creating uncertainty around interest rate trajectories.
“Confidence remains fragile,” he observed, noting households are reluctant to commit until borrowing costs become clearer.
Mr Hopper warned that potential property tax reforms under Britain’s new Prime Minister represent “a dark cloud for a market still craving clarity and confidence.”