Regions driving UK property price growth

Regions driving UK property price growth

Prices have seen year-on-year rises across the country, with performance in the UK regions having had the most profound effect on national rises.

Summary:

  • Property prices in the UK have grown by 5.7% year-on-year, with agents and analysts pointing to the strong performance of regional markets as a key driver for the overall national rise
  • Demand from buyers and sellers is buoyant following the General Election result in May, as a Conservative victory has also sparked activity among property investors
  • Cities such as Glasgow, Manchester and York were recently highlighted as key locations for investors to purchase property

Property prices in Britain are on the rise – and it’s the performance of the regions that are having a profound effect on the overall national rise.

Prices in the UK are again set for double-digit annual growth and have increased by 5.7% in the year to May 2015. Figures in the latest index from the Office of National Statistics show this is up from 5.5% in April. Broken down, average inflation in England stands at 5.8%, 2.5% in Wales, 2.9% in Scotland and 10.5% in Northern Ireland.

The uplift has taken the average British property price to £274,000. But it’s the significant growth in the regions in particular that analysts and agents have been keen to highlight.

Jonathan Hopper, Managing Director of Garrington Property Finders, said: “London and south-east England remain strong hotspots, but as the rates of price rises there return to more sober levels, five of the nine English regions saw their rate of price growth rise. Demand exceeds supply for all but the most expensive prime property, and this is steadily forcing prices up across the board.”

Activity in the market has peaked following the General Election, particularly among property investors after the threat of proposals such as rent caps put forward by the Labour party have been quelled. But Alex Gosling, Chief Executive Officer of online estate agents HouseSimple, has also cited other factors for the strong performance levels, with buyers and sellers “prompted by steady economic growth, better employment prospects and a boost in earnings”.

Capital growth is something that’s currently attracting investors to the city of Glasgow, with property prices in the Scottish city in the top three fastest accelerating in the UK.

Other cities for investors to consider include Manchester, the UK’s buy-to-let hotspot and the city at the heart of the government’s Northern Powerhouse plans, and York, which has one of the fastest growing populations in England and one of the lowest levels of housing stock.

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