Manchester and Birmingham among regional cities likely to be property hotspots this year
Manchester and Birmingham are expected to be two of the breakout cities this year in terms of growth, as London continues to slow down and more and more of the regional cities start to come to prominence.
Businesses moving further north or away from the capital in general continues to be one of the biggest drivers of change in the property market, with more skilled people looking to rent or buy in new cities where they are relocating for work.
According to real estate advisors JLL's recent report on the market moving forward, price growth across the UK is set to sit at 0.5 per cent for the year as a whole. In London, it is expected to rise to one per cent, which is higher than the national average, but far lower than in buzz cities like Manchester and Birmingham.
According to the report, a shortage of properties available for rent and to purchase in Manchester, for example, has seen the price pushed ever higher over the last couple of years, with a 15 per cent rise in 2016. This is likely to be even more prominent in the year ahead, meaning the market will rise far faster than the national average pace.
It's a similar story in Birmingham, where high demand and low supply has driven price rises for some time, and even north of the border in Edinburgh, where similar conditions have been experienced over the course of the last few years.
Speaking of the slowing down in London, Andrew Frost, leader director of UK residential at JLL, said: "Legislative changes, such as stamp duty, and the uncertainty around Brexit have led to weaker investment demand from overseas as well as domestic buyers. Alongside an overstretched owner occupier market, this will keep a lid on price pressure."