Warwick house prices increased more than West Midlands average in May

House prices increased by 2.5% – more than the average for West Midlands – in Warwick in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 11.4% over the last year.

The average Warwick house price in May was £363,349, Land Registry figures show – a 2.5% increase on April.

Over the month, the picture was similar to that across West Midlands, where prices increased 2.2%, and Warwick was above the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in Warwick rose by £37,000 – putting the area 21st 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 Warwick spent an average of £294,000 on their property – £29,000 more than a year ago, and £53,000 more than in May 2017.

By comparison, former owner-occupiers paid £426,000 on average in May – 44.9% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in Warwick in May – they increased 2.9%, to £317,847 on average. Over the last year, prices rose by 10.5%.

Among other types of property:

Detached: up 2.2% monthly; up 14.4% annually; £656,000 averageSemi-detached: up 2.6% monthly; up 12.6% annually; £386,000 averageFlats: up 2.2% monthly; up 6.5% annually; £218,343 average

How do property prices in Warwick compare?

Buyers paid 47% more than the average price in West Midlands (£247,000) in May for a property in Warwick. Across West Midlands, property prices are high compared to 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 6% more than in Warwick. 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

Warwick: £363,349West Midlands:£247,162UK: £283,496

Annual growth to May

Warwick: +11.4%West Midlands: +14%UK: +12.8%

Highest and lowest annual growth in West Midlands

North Warwickshire: +23.1%Solihull: +5.8%