In the year to date, landlords accounted for 26.2 pc. of all sales in the region, a jump of 15.2 pc in 2019. This was the highest share in the country and more than double the national buyer’s share of landlords of 12.7 pc.
David Fell, of Hamptons, said: “This is essentially a landlord product chasing yields in the north and buy towards the end of the house price growth cycle.”
The North West will see the second largest regional price decline in the country, with a 6.7 percent drop in 2023. In Yorkshire and the Humber, prices will fall by 6.6 percent. The respective owner-purchaser shares here are 16.9 pc and 15.5 pc.
In the North West, an average property of £209,000 loses £14,003 in value. In Yorkshire and the Humber, the fall in value will average £13,319.
Interest rate increases, which are: make mortgages much more expensive, are central. Since the Bank of England raised interest rates for the fifth time in a row in June, the CEBR lowered its Northeast home price forecast from a 6.6 percent decline to 9.1 percent.
The largest declines in house prices will be concentrated in the north, as these areas recorded some of the highest house price increases during the pandemic.
In 2021, house prices in the North East, North West and Yorkshire and the Humber rose by 10.4 per cent, 11.5 per cent and 10.2 per cent respectively, well above the national average growth rate of 9.4 per cent.
By contrast, CEBR in London, where house prices fell by 4.1 pc during the pandemic. lagged behind, a growth of 1.5 pc forecast for next year.