Manchester property has smallest asking price to selling price gap
New figures have backed-up claims that Manchester is the go-to city for property investors in the UK as it’s revealed it offers landlords and sellers the smallest asking price to selling price gap in the country.
The figures, included as part of HomeTrack’s recent cities house price index, revealed the sale price to selling price gap in Manchester was just 2.2%, the lowest in the country, on-top of an annual house price growth rate of 7.4% – again the best performing market in the UK.
The combined data signals how strong demand is in the capital of the north. Increasing asking prices not matched by buyer offers would suggest manufactured price hikes, but the small gap between listing price and final offer shows that buyers and investors are willing to pay what the market dictates as demand swells and the pool of available units struggles to match that demand.
The HomeTrack report notes that it ‘expects current trends to continue into the second half of 2018 as housing market forces continue to play out against the backdrop of rising employment and low mortgage rates’.
The north west and midlands are leading the UK property market boom, with Liverpool and Birmingham also excelling expectations. In Liverpool, annual price growth over the last 12 months was 7.2% whilst Birmingham saw 6.8% increases.
National averages level out to 4.6% across the UK, slowing slightly at 4.4% price growth in H1 2018.
And one of the reasons why Manchester, Liverpool and Birmingham are performing so well is property affordability, especially for first-time buyers and investors. Average unit prices in Manchester are just over £166,000, with £161,000 in Birmingham and just under £121,000 in Liverpool.
Student cities performing best
The top performing British cities with the highest rental yields, including the likes of Liverpool, Middlesbrough, Newcastle, Edinburgh and Manchester, all have a common boosting factor for the local property economy – a steady influx of students into the cities each year.
For landlords it means a constantly high level of demand and low chance of lengthy void periods.
Managing director of Surrenden Invest, Jonathan Stephens noted that: “Manchester has once more shown that it is one of the top investment destinations in the UK for buy-to-let properties.
“Investors enjoy the highest house price growth of any area of the UK, at 7.6 per cent according to the June 2018 Hometrack UK Cities House Price Index.
“The city also boasts the lowest level of price discounting in the country, which emphasises the strength and solidity of its property market.”