Regional Prices Rise Faster Than London, with Liverpool, Manchester, & Birmingham coming out on top. Property prices in regional cities are up across the U.K. Furthermore, price growth in the North of England is continuing to outperform that in London and the South, according to a report Monday by Hometrack. The report looked at data from 20 U.K. cities. Estimates are that house price inflation was 5.2% in the 12 months to February 2018 compared to 4% the year previously. However, there is a disparity between the performance in regional markets compared to London and the South East. Of the 20 cities covered half are recording an annual growth higher than the same time last year. What’s more, is they are all in Midlands, the North, Scotland or Wales. Whereas, there was no city in the South, which recorded a rise on last years growth figures, according to the report.
Meanwhile, nine of the 20 have recorded a slow down compared to the previous period; Bristol, London and Southampton, all in the South, showed the lowest price growth. Furthermore, prices falls were recorded in 2 cities, Cambridge and Aberdeen, where values are now 1.5% and 7.7% lower than a year ago.
Prices fell by 3.2 per cent in the first three months of the year according to the Halifax House Price Index. The average house price in London was £430,759. Therfore, standing at it’s 2015. This is a 3.8 percent reduction, which is the largest price drop since 2011. Leading growth was the East Midlands, where prices are up 7.3 per cent in a year.
In London, house prices grew 1% in the 12 months to February, down from 4.3% growth a year ago. Therefore, this is the lowest annual rate of growth since August 2011. The average asking price for fresh-to-the-market homes in Great Britain has jumped 1.5% in March, the largest increase seen at this time of year since 2007, according to a report Monday by Rightmove. The U.K. property website analyzed prices between Feb. 11 and March 10. Strong demand from buyers and a drop in housing supply in the first two months of the year resulted in the stronger upward pricing, the report said. Despite the weak price growth from London, the strong demand from buyers and a drop in housing supply in the first two months of the year resulted in the stronger upward pricing, the report said. Rightmove measured 112,693 properties that entered the market in the last four weeks, down by 5.2% on the same period a year ago, according to the report, adding that some of the drops will be a result of the recent heavy snow in much of the region. The price increase could be the market catching up after a subdued January and beginning of February, “or an early sign of price pressure building up a real head of steam as we enter the spring market,” said Miles Shipside, Rightmove director and housing market analyst, in the report. Though sellers need to be mindful that, sooner or later, higher prices tend to mean fewer people can afford to move, which is one of the factors keeping the annual rate of increase subdued at 2.1%, he added.
The Future outlook for the North West of England looks very promising. Because of the impact of the HS2 line and other regional infrastructure developments, Savills are anticipating a 14% cumulative rise in prices across the UK by the end of 2022. In addition to this, the northwest of England seeing the biggest regional price rise of 18.1%. Moreover, JLL predicts 13.1% House Price Growth on Average and 20% for Manchester Liverpool Leeds over the next 4 years.
Birmingham is a quickly gaining popularity amongst investors looking to secure long-term appreciation. The large-scale regeneration is transforming the city. With 110,000 new jobs created in 2017, there is an increased strain on housing demand. Investors should move quickly to secure their gains. We have 2 new projects in the Smithfield Regeneration zone. Smithfield is a 14 Hectare site and a total development of £500m. There will be a 100,000 sq ft of leisure retail and residential areas built over the coming years. Which is will transform the landscape of the area. click on the links below to view our latest Birmingham projects.