Prime properties under £1million saw values rise by an average of 6.1% over the year to March 2015, partly driven by the stamp duty savings introduced in the 2014 Autumn Budget. By contrast properties worth over £1 million saw prices fall over the same period as a result of the extra stamp duty now due.

Over the longer term, average values of prime housing stock in Shropshire and Staffordshire still remain -17.7% below their 2007 peak.

Town vs Country

A trend we’re seeing across regional markets is the continued rise of prime urban locations, which have been outperforming their rural counterparts since the credit crunch. Homes in prime towns such as Shrewsbury and Uttoxeter have seen growth of 4.7% over the past year compared to similar properties in rural locations, which have seen more subdued growth of 0.7%.

Interestingly, the best properties in villages such as Much Wenlock and Eccleshall have also begun to pick up, recording annual growth of 4.0%. Home movers, attracted to the rural lifestyle and more space, are taking advantage of the value gap and the opportunity that properties away from major towns offer.

Increasingly attractive

The recent upturn in house prices has, for the most part, been driven by local demand. Buyers who are already living in the West Midlands accounted for 68% of purchasers in 2014-15 according to our Savills data, a big change from prior to the recession when 60% of purchases came from outside the region.

Interestingly, in 2014-15, 15% of buyers relocated to the region from London and the South East. With the capital just an hour and 17 minutes away from Stafford, commuting is a viable option and one that many buyers relocating to the region consider. Additionally, increasing employment prospects within the region, good schools and lower housing costs are an ever increasing attraction.

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^{Source: Savills Research}

Industry

The Jaguar Land Rover’s i54 plant opened last year and may well provide a hub for other businesses in the region. Already, HSBC has announced a move to the region and The Ministry of Defence and Muller Wiseman are increasing their investment. By 2019, HSBC will have moved 1,000 head office roles from London to Birmingham. The HS2 high speed rail link was a crucial factor in the relocation – train times to London from Birmingham will be cut to 49 minutes – as well as its strong financial services sector.

Other high profile additions to Birmingham’s banking and professional services sector include Deutsche Bank, which expanded its presence in 2014, while a number of international law firms have also set up in the city.

It is not only traditional industry that is attracted to the West Midlands. According to Tech City UK, Birmingham saw a 51% increase in new digital companies between 2010 and 2013.

Momentum is set to continue as Business Birmingham, the city’s official inward investment programme, believes the city will attract over 10,000 new tech jobs by 2020 as the digital boom spreads from London to the regions.