Northern cities leading the way in UK property price growth
Traditionally, it has been London and the south of England that drives house price growth in the UK. With better performance than the rest of the country, the south has long propped up the sector as and when it needed a boost.
However, this is all starting to slowly change, and in the last few years, other regions have been coming to prominence as areas of faster growth, helping to do away with the notion of the traditional north-south divide.
According to the latest data released by Hometrack, in the past 12 months there has been a slowing down in the rate of house price growth across key British cities. Between July last year and the same month in 2017, growth has fallen from 7.4 per cent to 5.3 per cent. However, regional cities are going against this trend, and many in the north are starting to see growth far above the national average.
The report shows that Birmingham is currently enjoying the fastest growth in the UK, with house prices in the Midlands city up by eight per cent when compared to one year ago. This is followed by Manchester and Nottingham, each of which has enjoyed strong growth at 7.1 per cent and 6.5 per cent respectively.
The key reasons for growth in these cities remains the fact that they have been the areas that have seen the most impressive numbers of new jobs created over the last few years. As more startup companies move away from opening their doors in London and instead turn to the likes of Manchester and Birmingham, they attract more young professionals, which in turn pushes house prices higher.
And moving forward, the report even goes on to say that the growth experienced in the UK regions is likely to continue for some time. "We expect house price growth in regional cities to be sustained at current levels for the rest of 2017. London is set for a sustained period of low nominal house price growth and lower sales volumes," it said.