21 Nov 21.11.2017 Manchester has the fastest growing house prices in the UK
21.11.2017 Manchester has the fastest growing house prices in the UK
With fastest-increasing property values of all UK cities, Manchester is now the number one UK property hotspot. Manchester witnessed 8.8% annual house price growth thanks to a surge in transactions, followed by Birmingham at 7.4% and Leicester at 7.2%, knocking Bristol off the top spot.
Manchester’s annual growth was mirrored in other regional cities. Liverpool at 6.8% and Leicester at 7.2% are seeing strong growth on the back of 30% to 40% surges in transaction volumes over the last three years.
Meanwhile, London has fallen from first place with 12.8 per cent growth, to tenth place in the list of fastest growing cities, behind Portsmouth, Bristol, Glasgow and others. The rate of annual price growth in the capital has dropped to 5.6% – the lowest since 2013, as the number of sales fell by 8 per cent in part sue to a weaker demand from property investors, affordability pressures and uncertainty over Brexit. UK-wide, city house price inflation is sitting at 6.4% down from 7.8% in 2016, and the current average price now is £246,100.
Sales volume in regional cities will largely depend on the buyers’ response to a number of factors including the impact of stagnating wage growth, the potential for higher mortgage rates and concerns over Brexit. These factors have shifted the dynamics of the housing market: a lot of cities previously experiencing house price growth are now seeing a significant slowdown, and regional cities are likely to continue to see robust and steady levels of house price growth.