Cities across the North and Midlands have continued to see a rise in house prices over the first half of 2017. Birmingham, Manchester, Edinburgh, Leeds and Nottingham all make the top five for market growth over this period, the Hometrack UK Cities House Price Index reports.
Numbers are indicative of the demand for property in city regions and Manchester has seen new and renovated properties being snapped up by consumers and investors. Over the first half of the year there has been an 11% increase in mortgages taken out even though they are currently selling at 5% above the 5-year average.
With this increased market demand, house prices are steadily rising, despite taking an initial slow down immediately after the Brexit vote last summer. Economic growth, more employment opportunities and mortgage prices all contribute to a stronger property market and the Hometrack report predicts that growth over 2017 will be in the region of 6-7% (from a previous prediction of 4% in 2016H2).
London, Oxford, Bristol and other cities across the South still suffer with cooling values as the market fails to remain above the level of consumer inflation. However, prices in these areas remain high leading to people looking elsewhere to make their investments.
This report is encouraging news for those looking to invest in property this year and offers great insight into the areas where return on investment is most likely. Manchester especially is benefiting from this strengthening market with more companies investing in the city, bringing with them a stronger economy and workforce and high demand for rental property.