House Prices Increase in Every UK City for the First Time Since 2016
For the first time in over three years, 20 major UK cities have recorded house price growth on a year-to-year comparative basis at the same time.
House prices in the capital grew by 0.2% compared to February last year, while the growth in Aberdeen stood at a far healthier 1.8%. That compares to high growth cities including Manchester and Glasgow where prices increased by 5.8% and 5.7% respectively, highlighting the continued strength in markets north of London where initial prices started low with scope to grow.
Long-term comparison highlight that Manchester is the best performing market today, compared to February 2017 with 6.7% price growth, followed by Birmingham and Nottingham at 6.4%. This has been greatly received by PNFT company, LPC Living who have made quality housing in desirable areas across the north of England.
This data is encouraging and indicates the underlying strength at present. CEO of Bricklane, Simon Heawood comments that: “Despite great political uncertainty, house prices are rising across the country, even in London average house price growth is now back to positive territory.”
“With house prices rising above inflation, property continues to represent an attractive investment in the context of rock bottom cash interest rates and stock market volatility.”
POTENTIAL OUTLOOK FOR 2019
Some reports suggest there’s a lack of supply of new properties onto the market and that buyers are biding their time in the hope of snapping up a post-Brexit bargain; yet the fact that average prices in the 20 tracked cities in Zoopla’s Index have recorded price growth for the first time in three years, indicates an active property market. This includes zones such as London where prices had dropped to narrow the gap with buyer affordability.
Key buyer demographics, particularly first-time buyers, have spearheaded demand with the number of mortgage approvals for Small Deposit Agreements rising. These mortgages, which are preferred by new buyers such as Help-to-Buy, are increasing each year.
Two of the most active first-time buyer regions include Yorkshire and the North West, where house price growth in cities such as Manchester, Sheffield and Leeds have led the UK over the last 24 months.
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Whilst political uncertainty might have seen some buyers reduce the urgency of their search for a new home, there’s strong evidence in the property market uplift since the start of the year. Halifax’s report last month indicated a record monthly rise in house prices, the findings went on to conclude that there is much pent-up demand in the market with people actively searching to find the right property and buying opportunity.