Property prices in the two cities have soared past pre-2007 levels, unlike many other towns in the region.
- Manchester and York are the only cities in the north of England where property prices have soared past the levels recorded during the boom of 2007
- Following sustained growth, average house prices in England and Wales are now collectively 2.1% higher than they were prior to the global economic downturn
- Huge demand for property in the two cities are being met by low levels of supply, making them some of the most popular investment locations in the UK right now
The investment fundamental of ‘location, location, location’ has been highlighted in a new report which shows that two UK cities have bucked the trend for an entire region when it comes to capital growth.
Property prices in England and Wales are now 2.1% higher than their peak levels during the real estate boom of 2007. The resurgence has been most profound in London, where prices have risen by 40.7%, consequently creating an affordability ceiling for many investors.
However, the research from Countrywide suggests that this pace of growth hasn’t been mirrored in other regions of the UK. In the north-west, for example, prices collectively are still 16.4% lower than they were eight years ago, while local economic factors have also stunted growth in the north-east, as prices remain 21.2% lower than 2007.
Yet there are two cities in the north of England where capital growth has confounded those of neighbouring towns and has soared past pre-2007 levels. Manchester and York are the only two cities in the north which have seen capital growth surge past growth levels of eight years previous.
Savills recently identified York as having the highest capital growth in the UK. Demand for property in the historic city is met with strict planning laws which stifle supply, while over 70% of York’s students cannot access purpose-built student accommodation.
It’s a similar story in Manchester. Earlier this year HSBC named Manchester as the UK’s buy-to-let hotspot. A population that’s risen at three times the national average has heightened the emphasis on property in a city with one of the country’s lowest levels of new housing stock. Furthermore, one of Britain’s youngest demographics is increasing the demand for property in Manchester’s private rented sector, fuelling interest from institutional investors over the last year.