Large regional cities across the UK are experiencing strong growth in house prices, with the highest rates of growth found in Scotland and the north.
- House prices in UK cities are projected to reach 10% by the end of the year
- Price growth sharpest in Scotland and the north of England
- Manchester is experiencing the strongest growth in England, with house prices rising by 17% since 2012
House price inflation is set to hit 10% in 2015 as price increases continue to accelerate in large regional cities, according to a new report.
Hometrack UK Cities House Price Index showed that cities have seen an annual house price growth of 9.4%. In particular, large regional cities outside of southern England recorded an acceleration, higher growth than in the capital and the commuter belt.
The highest rates of annual house price growth since 2007 were focused in Scotland and the north, with Glasgow prices up 8.3%, Manchester up 7% and in Liverpool up 5.1%.
Since 2012, Manchester house prices have been recovering and average house prices have risen by 17% over this time to £141,200. House prices across Manchester have grown by 7% in 2015, the highest rate of growth since July 2007.
Richard Donnell, Director of Research at Hometrack, said: “Many corporate investors and developers are looking to the major regional cities in search of better value for money in new investments relative to London.”
The recovery emerging in large regional cities contrasts strongly with the rise of London’s house prices where average values are up by 70% since 2009 and by over 100% in the highest value markets in central London.
The high value markets, now recording some of the weakest levels of house price growth as tax and currency changes impact demand, have lost favour with investors. With the house price growth momentum swinging toward Scotland and the north, and an increase in developments in these areas, large regional cities outside of London offer better value for those looking to invest in the UK property market.