House prices in the North West set for highest growth forecast in UK
The price of housing across the North West of the United Kingdom is set to rise faster than any other region in the UK over the next five years. This prediction has been made by property agent, Savills, who have suggested there will be a growth of 18% by 2022. This result would mean the growth in the North West would be two-and-a-half times the rate that is predicted in London.
The overall forecast in the UK is predicting there will be an increase of around 14%. There may be a dip in the rate of growth next year but it’s expected to pick up again towards the end of 2018.
Growth is expected to return in 2019-2020. This is in partnership with the growth of employment, wages and GDP levels but could be affected by the rise of interest rates though.
Lucian Cook, the head of residential research for Savills, said that: “Uncertainty over what Brexit means for the UK economy and how it will impact household finances will increasingly act as a drag on house prices. There is capacity for growth once we have greater clarity, but this will be constrained by rate rises and the corresponding ability to get mortgage debt, particularly in London and other higher value locations.”
House prices strong in South Manchester & Cheshire
Charlie Kannreuther, who is the head of residential at Savills Chester, assessed the strengths that areas of South Manchester and Cheshire possessed, saying: “There is also strong demand in the prime market in perhaps less obvious areas. One of the highest residential sales in the North West this year, for example, was a property near Blackburn which sold above its £3.5m guide price. In spite of this, the buoyancy of certain markets masks large regional variations, where some areas which in the past have been reliant on traditional industries continue to struggle.”
This divide does exist in all regions, but it is especially highlighted in the London region. London is considered a prime region where the markets are forecasting a growth of around 20%. This has been predicted to take place over the next five years, despite London expecting their house prices to fall in 2019. The North West seems to be pulling ahead of London though. The movement of large businesses to the North and the price differences between the North West and London certainly play a factor as well.