Manchester house prices are growing faster than any other UK city
Manchester house price growth - the city experiences faster growth than any other UK city
Manchester remains the fastest growing city where the annual growth rate is 8.8%, according to a report published by hometrack.
The report, published today shows that growth is at a 12 year high in larger regional cities, including Manchester. UK city house price growth is picking up momentum and that house price growth in the first quarter of the year was 3.5%, the highest quarterly rate of growth for 3 years. Overall city level house price growth rate is 6.4%, up from 4.9% at the end of last year. It explains that attractive affordability levels, record low mortgage rates and an improving economic outlook are all supporting demand for housing. Together with limited availability of stock for sale this is creating scarcity and an upward pressure on house prices.
Manchester House Price Growth – supply and sales
The report also illustrates the ratio between new supply and sales agreed comparing London to Birmingham and Manchester. It highlights how the balance between new supply and sales remains ‘tight’ in Birmingham and Manchester while market conditions have weakened in London. In the case of Birmingham (8.0%), Manchester (8.8%) and Newcastle (5.6%), continued improvement in underlying market conditions has resulted in the annual rate price increases reaching levels not seen since early-2005.
At the other end of the spectrum, house price inflation in London continues to slow and has now reached 4.9% year on year which means the capital is among the five slowest growing cities along with Oxford and Cambridge. In these areas it has slowed to less than 5% for the first time in five years as affordability pressures, and tax changes for investors, constrain demand. It is clear that in London sales are failing to keep pace with supply. Stock that is on the market will require downward price adjustments in order to sell.
You can read the full Hometrack report here