Coventry house prices increased slightly in May

House prices increased slightly, by 0.7%, in Coventry in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 9.8% over the last year.

The average Coventry house price in May was £220,459, Land Registry figures show – a 0.7% increase on April.

Over the month, the picture was different to that across West Midlands, where prices increased 2.2%, and Coventry was lower than the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in Coventry rose by £20,000 – putting the area 27th among West Midlands’s 30 local authorities with price data for annual growth.

The highest annual growth in the region was in North Warwickshire, where property prices increased on average by 23.1%, to £266,000. At the other end of the scale, properties in Solihull gained 5.8% in value, giving an average price of £320,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said:“The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in Coventry spent an average of £194,000 on their property – £17,000 more than a year ago, and £44,000 more than in May 2017.

By comparison, former owner-occupiers paid £249,000 on average in May – 28.3% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in Coventry in May – they increased 1%, to £197,034 on average. Over the last year, prices rose by 9.7%.

Among other types of property:

Detached: up 0.2% monthly; up 11.6% annually; £424,273 averageSemi-detached: up 0.7% monthly; up 10.8% annually; £263,191 averageFlats: up 0.3% monthly; up 6% annually; £132,338 average

How do property prices in Coventry compare?

Buyers paid 10.8% less than the average price in West Midlands (£247,000) in May for a property in Coventry. Across West Midlands, property prices are lower than those across the UK, where the average cost £283,000.

The most expensive properties in West Midlands were in Stratford-on-Avon – £384,000 on average, and 1.7 times as much as more than in Coventry. Stratford-on-Avon properties cost 2.8 times as much as homes in Stoke (£139,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in May

Coventry: £220,459West Midlands:£247,162UK: £283,496

Annual growth to May

Coventry: +9.8%West Midlands: +14%UK: +12.8%

Highest and lowest annual growth in West Midlands

North Warwickshire: +23.1%Solihull: +5.8%