Bristol and Manchester lead the way in end of 2016 house prices
Bristol and Manchester have seen the largest year-on-year price growth in key cities across the UK, according to the latest reports, which suggest that Manchester has hit a 12-year peak in terms of house price growth and demand.
The Hometrack index shows that demand far outstrips supply in Manchester, which means that buyers are having to pay far more in order to secure their properties than they have in the past. As of December 2016, year-on-year price growth in the city was at 8.9 per cent, which is faster than it had been since the end of 2004.
However, Manchester was still not the fastest growing city in the UK, with Bristol just pipping it to the post in that regard. The south-west city recorded annual price growth to the end of December amounting to some 9.6 per cent.
The story was a little different for London, however. While the capital has traditionally been the fastest growing area of the UK, it has not enjoyed as much success in the past year as it had done previously.
According to the Hometrack index, the cost of houses in London went up by 7.3 per cent in the year to the end of December. This meant that it was only seventh in the list of key cities in terms of annual growth. It was also the slowest rate at which house prices in London have climbed at any time since 2013.
And in the year ahead, London is expected to see further slowing as the focus of the property market across the UK moves away from the capital and towards other regional areas where there are cheaper prices and generally better availability levels.