London stable while northern property stars shine
A fascinating report from the Hometrack shows us how varied price growth - and decline - is around the UK.
Splitting the eight years to 2017 into four, the data from the housing market analysts show that London and other southern cities were the fastest to recover following the 2008 financial crisis. As the euro felt pressure, foreign investors channelled their funds into London property, fuelling an intensive price growth between 2008 and 2013.
However, property prices around the wider Southeast region - especially those hubs connected to London by rail links - also grew, and some, such as Cambridge and Oxford, even recorded sharper rises than that of the capital. Further afield, Bristol performed well, with a 70 percent rise in property over the eight-year period. The years 2014-2015 saw London and the Southeast property reach its peak as demand pushed prices up so high that affordability began to drop off for those hoping to buy with a mortgage.
Meanwhile, in the north of the country, Glasgow and Liverpool were still showing price drops. This began to change around 2015-2016, along with the fortunes of Northern cities which experienced rising employment and economic growth.
Hometrack also has its predictions for the future. Edinburgh is the fastest growing city in the UK, with 7.7 percent annual growth and an average house price of £218,000. Other rising stars include Manchester, Birmingham and Liverpool property, where rises of 20-30 percent are likely in the next three to four years.
London’s housing market is set for a more modest growth period. Transactions are down, and average house prices are set to lower. However, there is still steady demand for mid-sector housing, new build developments with 1-3 bedrooms in regenerating areas: these are priced favourably and have the infrastructure to support further growth.