Manchester sees the highest UK house price growth, as prices have risen by 8.8% year-on-year, with sales volumes growing by over 40% in the last three years. But even after the strong rise, the average Manchester house price is still far lower than cities in the south of England, at £151,800. The reason for this house price boom in Manchester is thanks to a growing job market and improved transport links around the city. The same goes for Liverpool and Birmingham. This is diverting people’s attention away from the London property market, especially when they are looking to secure their first home.
Since Brexit, the UK’s average house price growth stands at 6.4%, down from 7.8% in 2016. Richard Donnell, from Hometrack, expects that the rate of house price growth will moderate over the rest of 2017. He said, “buyers are fully aware of the government’s plans and timescales for Brexit but there remains huge uncertainty over what this means for the economy over the next two to three years and beyond. In cities where affordability remains attractive, we expect demand to hold up in the short term, albeit with slower growth in sales volumes”.
Levels of housing turnover are expected to remain broadly flat over the rest of 2017, due to the impact of lower wage growth, higher mortgage rates and this week’s triggering of Article 50.
There remains much uncertainty surrounding the effects of Brexit negotiations on the UK property market. There are however a few general predictions which have been made by market experts:
- The market should stabilize – The UK property market is very reliant of confidence. Confidence will be regained now that action is underway and demand will rise. After years of low transaction rates history shows we should be due years if increased activity.
- Demand will drive the market – Even with a level of uncertainty, demand for property outstrips supply and will ensure prices will be stable or steadily increasing.
- International investment will continue – With a weaker pound, UK property is more attractive to overseas buyers and investors.