Property News > Edinburgh and Manchester lead annual price growth in UK cities
Edinburgh and Manchester lead annual price growth in UK cities
Major UK cities saw house price increases of 4.6% in the 12 months up to May 2018, with Manchester and Edinburgh leading the way as the top two urban hotspots. Over this 12 month period, Edinburgh and Manchester experienced increases of 7.1% and 7% respectively, according to new data. Meanwhile, Aberdeen and Cambridge were shown to be the only two declining house markets, with prices falling by 5.7% and 0.9% respectively. The index from Hometrack also shows year on year increases well above the national average in cities such as Bournemouth at 6.6%, Birmingham and Nottingham both at 6.5%, 5.9% in Liverpool, 5.7% in Leicester, and 5.5% in Cardiff. 20 boroughs in London also experienced a drop in prices, clearly illustrating a slowing down of average annual price growth across the capital, which is now just 0.4%. The index also indicated that the growth gap between London and the rest of the UK is narrowing, with house prices in many regional cities rising at a faster pace. This is a trend which Hometrack expect to see continuing over the coming months. ‘Over the next 12 to 24 months we expect the gap between London and other cities to narrow further, mirroring the trend over 2002 to 2005 when London house price growth was weak after a period of out-performance from 1996 to 2000. In contrast, regional housing markets had under-performed and only started to register strong growth from 2001 onwards, which closed the gap to London,’ the report says.Graham Davidson, managing director of Sequre Property Investment, suggests that the figures point to Manchester being an ideal place for landlords to invest, as the city has rising house prices, high tenant demand and healthy rental yields. ‘Landlords who have yet to switch their buying habits for investment purposes should really consider their next move. It’s not a wise tactic to rely on capital growth alone and the North West in particular should be a firm focus for investors seeking a combination of high yields, capital growth and an ever growing talent pool looking for high quality rental accommodation,’ he said.‘Manchester isn’t the only city as Liverpool and Leeds also continue to be hotspots and many investors are yet to take advantage of this. Prices in Liverpool are still 6% below their 2007 peak and with strong financials, we expect this city to mirror the success of Manchester,’ he added.Craig McKinlay, sales and marketing director at Kensington Mortgages, points out that prices are likely to continue to rise in cities such as Birmingham, Nottingham and Manchester as demand continues to outstrip supply. ‘The inconvenient truth is that the long term solution for this problem will require considerable planning and commitment. Reaching housing targets for future generations still needs considerable investment and until this is done, prices will continue to creep up,’ he explained.