North Kesteven house prices increased more than East Midlands average in May

House prices increased by 2.2% – more than the average for the East Midlands – in North Kesteven in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 14.6% over the last year.

The average North Kesteven house price in May was £260,222, Land Registry figures show – a 2.2% increase on April.

Over the month, the picture was similar to that across the East Midlands, where prices increased 1.9%, and North Kesteven was above the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in North Kesteven rose by £33,000 – putting the area eighth among the East Midlands’s 35 local authorities with price data for annual growth.

The highest annual growth in the region was in Harborough, where property prices increased on average by 22.7%, to £386,000. At the other end of the scale, properties in Rutland lost 6% of their value, giving an average price of £341,000.

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 North Kesteven spent an average of £221,000 on their property – £28,000 more than a year ago, and £54,000 more than in May 2017.

By comparison, former owner-occupiers paid £283,000 on average in May – 28.2% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in North Kesteven in May – they increased 2.5%, to £175,427 on average. Over the last year, prices rose by 13.4%.

Among other types of property:

Detached: up 2.2% monthly; up 15.1% annually; £318,045 averageSemi-detached: up 2.2% monthly; up 14.9% annually; £214,878 averageFlats: up 1.7% monthly; up 7.4% annually; £112,202 average

How do property prices in North Kesteven compare?

Buyers paid 6.6% more than the average price in the East Midlands (£244,000) in May for a property in North Kesteven. Across the East Midlands, property prices are higher than those across the UK, where the average cost £283,000.

The most expensive properties in the East Midlands were in Harborough – £386,000 on average, and 1.5 times as much as more than in North Kesteven. Harborough properties cost 2.3 times as much as homes in Bolsover (£168,000 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

North Kesteven: £260,222The East Midlands:£244,060UK: £283,496

Annual growth to May

North Kesteven: +14.6%The East Midlands: +15.2%UK: +12.8%

Highest and lowest annual growth in the East Midlands

Harborough: +22.7%Rutland: -6%