Manchester enjoying 8.4% house price growth
26 Jun 2017
Manchester is showing the steepest rise in house price growth in the UK, while cities such as London, Bristol, Cambridge and Oxford are experiencing significant decline. Cities in the Midlands have seen a robust growth which is expected to continue, overtaking previously high-growth cities in the South.
In the UK as a whole, city house price growth is running at 5.3 per cent, down from 8.7 per cent in April 2016. However, there are 11 cities which have demonstrated more rapid and robust growth from April 2016 to April 2017 than in the previous year. The highest rate of growth comes from Manchester where house prices shot up by 8.4 per cent – far exceeding the national average. House prices have also shown a strong increase in: Leicester, Nottingham, Southampton, Edinburgh, Leeds, Sheffield, Newcastle and Liverpool, according to Hometrack’s latest UK Cities House Price Index.
It is the least affordable cities which have seen the biggest decline, with house price growth in London slipping from 13 per cent in April 2016 to a mere 3.5 per cent in April 2017. London is not the only city to have been hit by deceleration in the housing market, however; Cambridge, Oxford and Bristol have also experienced a drop in house price growth from double to single figures. This comes as demand for houses in these areas has been dampened by affordability constraints and tax changes.
In contrast, Leicester’s housing prices have grown by 7.7 per cent, Birmingham’s also by 7.7 per cent, and Nottingham’s by 7.2 per cent. Demand in Manchester and regional cities in the North has also risen as a result of the relative affordability of these locations and an optimistic economic outlook arising from the Northern Powerhouse and Midlands Engine initiatives.
Furthermore, the ratio of house sales to new homes being built in Manchester indicates relatively tight housing supply, suggesting the city will continue to experience a rise in house prices. The availability of homes in comparison to rising demand remains restricted, and so upward pressure will be placed on the value of houses in this area – which is good news for those who own property in Manchester or who are considering investing there.
Having identified the impressive value and returns that cities in northern regions can provide, our portfolio of UK properties features luxury apartments in the heart of Manchester and Nottingham, as well as a selection of specialist student accommodation in other northern regions. To find out more about our property portfolio and how you can take advantage of the growing house prices in cities like Manchester, Nottingham and Birmingham, contact the Gower & Mae team on +44 (0) 1483 230 430 or at email@example.com.