Figures released by the Office for National Statistics (ONS) show that property house prices in the Northwest of England rose by 3.4 per cent in the year to May.
Since the Brexit referendum in June 2016, the property market has struggled with buyers and sellers taking a ‘wait and see’ approach.
While the extension of the Brexit deadline from March to October this year helped the market, political uncertainty has affected demand and supply.
Chief economic adviser to the EY Item club, Howard Archer, said: “The housing market is still finding life challenging amid major uncertainties, although there are significant variations across regions.”
According to the ONS, the average house price in the northwest – including areas such as Liverpool and Southport – grew by 3.4 per cent to £164,261.
Economists predict that house prices could rise again if Britain secures a Brexit deal before the leave date of 31 October. Strong wage growth, better consumer buying power, robust employment and low interest rates have all given the property market a boost.
Changes in house prices are closely watched by government and central bankers. Policymakers view the performance of the property market as a key economic indicator that serves as a guide to the overall health of the economy.
The combined house price index from the ONS and the Land Registry tracks sales data on housing transactions made with cash or mortgages. This includes newly built properties and homes that have been occupied for a long time.