The latest UK cities house price index from Hometrack was released yesterday with reassuring news for Manchester and property investors.
October’s HomeTrack UK Cities House Price Index reports that Manchester has once again been named as the UK’s fastest growing city with a year on year growth of 7.9%. Manchester’s house prices have increased at an accelerated rate that is 2.4% faster than the national average growth rate.
As a whole, the UK City House price inflation has increased to 6.1% which is the highest registered rate of growth for the UK since September 2016 and is above the national average growth rate (4.7%). This speed of price growth is driven by the UK’s regional cities where affordability levels, measured on a price to earnings basis are in line with the 15-year average. The falling rates of unemployment across the UK and record low mortgages have also contributed to this recent surge of property activity.
HomeTrack also states that they had updated their annual analysis of housing affordability and as a result saw the house price to earnings ratio in London reaching an all-time high of 14.5x. This is also added to the fact that the rate of growth across London has continued to stabilise at 3.0%.
The property market across the North remains strong as the report indicates that most cities outside the South East of England have a price to earnings ratios that are in line with the 15-year average, which is likely to be because of the decrease in mortgage rates which boosts the buying power of households.
This is not the first time Manchester has been named as the UK’s fastest growing city as the August UK Cities House Price Index also saw Manchester named as the fastest growing city at a rate of 7.3%. October 2016 saw Manchester reach an annual rate of growth of 6.7% which reflects the continual growth of this regional city.
The increased rate of growth in Manchester added with other Northern cities such as Leeds seeing price growth of 6.4% or Liverpool who are seeing 5.5% shows why buy-to-let property investors should look to invest in the North.
The steady and reliable year on year growth of Manchester’s property market is reflected throughout October’s HomeTrack UK Cities House Price Index, combined with the recent budget announcements of abolished stamp duty for first time buyers and the promise of 300,000 homes built by 2025, the property market remains stable and secure making now the time to invest in property.
As a local Manchester company specialising in property investment strategies, we are delighted to see Manchester named as the UK’s fastest growing city once again.
To read the report for yourself click on the link below;