Manchester ‘top for house price growth’ across major UK cities
24 March 2017
Manchester is now leading the way for house price growth across the UK's major cities, with property values there up by nearly 9% year-on-year - according to an index.
Hometrack, which tracks the movements of house prices across the 20 biggest cities, said London is now in 10th place in terms of year-on-year house price growth.
House prices in Manchester grew by 8.8% year-on-year in February. Portsmouth had the next highest annual house price growth, at 8.1%, followed by Bristol at 8%, Glasgow at 7.7% and Birmingham at 7.4%.
In London, annual house price growth has continued to slow, reaching 5.6% in February - the weakest rate seen there since May 2013.
Hometrack said house price growth in London is now acting as a drag on the overall rate of house price growth across the UK's major cities.
The average annual house price increase across the UK's major cities is 6.4% - higher than in London.
Meanwhile, Aberdeen remains the only major city in the index where house prices have fallen year-on-year, with a 5.9% tumble.
Hometrack said affordability levels in southern cities like London, Bristol, Oxford and Cambridge is stretched, with the housing market also being affected by weaker investor demand and the impact of the Brexit vote.
The report continued: “While growth in Manchester has hit close to 9%, the supply/demand dynamics are not strong enough in regional cities outside southern England to support double digit rates of house price growth.”
Richard Donnell, insight director at Hometrack said: “Buyers are fully aware of the Government’s plans and timescales for Brexit but there remains huge uncertainty over what this means for the economy over the next two to three years and beyond.
“In cities where affordability remains attractive we expect demand to hold up in the short term albeit with slower growth in sales volumes. Overall we continue to expect the rate of house price growth to moderate over the rest of 2017.”
Here are average house prices in February in the 20 cities in Hometrack’s index, and the year-on-year increase:
1. Manchester, £151,800, 8.8%
2. Portsmouth, £225,600, 8.1%
3. Bristol, £261,900, 8%
4. Glasgow, £117,900, 7.7%
5. Birmingham, £148,300, 7.4%
6. Leicester, £162,400, 7.2%
7. Liverpool, £115,600, 6.8%
8. Bournemouth, £275,500, 6.2%
9. Southampton, £220,600, 6%
=10. London, £488,700, 5.6%
=10. Sheffield, £130,800, 5.6%
=10. Nottingham, £140,700, 5.6%
13. Edinburgh, £203,900, 5.5%
=14. Leeds, £154,800, 5%
=14. Cardiff, £193,700, 5%
16. Belfast, £127,700, 3.8%
17. Newcastle, £123,800, 3.7%
18. Oxford, £409,700, 3.4%
19. Cambridge, £418,400, 2.2%
20. Aberdeen £181,600 minus 5.9%
Joe Giddens/PA Wire