Manchester has reported the fastest year-on-year (YOY) growth of any UK city according to the latest Hometrack UK report, despite the overall market growth rate by 3.4%. Manchester saw an increase of 8.4% over the previous year which compared to London’s growth of 3.5% shows that property is in high demand.
House prices in the North West have not yet increased beyond affordability. This, combined with a more stable economy and record low interest rates on mortgages, has seen the numbers of individuals, families and investors looking to buy in the region increase rapidly.
Other Northern and Midland cities have seen marked growth in their own property markets which is in stark contrast to the once popular Southern regions which have stalled in recent years. London has seen the largest slow down in property prices with their YOY change of 13% only a year ago, falling to 3.5% at the same time this year.
This fall in property value across the South, which is also apparent in Cambridge, Oxford and Bristol, has resulted from those looking to buy being priced out of the market along with tax changes and weaker market sentiment. With house prices in these cities being unaffordable to many, buyers are looking to the Midland and Northern cities to make their investments.
Demand for new properties in Manchester has grown significantly over the last year and this has sometimes outstripped supply. New properties are snapped up quickly, often being bought off-plan which has kept prices higher than normal; Manchester’s average house price growth stands at 4%, just above the national average of 3.2%.
There is some speculation around the effect that this week’s General Election and Brexit will have on property prices, but following last June’s decision to leave the EU, foreign investment in the region has seen further growth in property value.
With the continued development of the Greater Manchester region and this increasing demand for new homes, the property market here is likely to see continued growth. For investors and buyers, there has never been a better time to invest in property in Manchester.