Manchester currently seeing the best house price growth in the country, with figures from Hometrack claiming prices in house prices in Manchester grew by 8.8% in February – a faster rate in the property market in any large city in Britain.
This means Manchester is at the top of the rankings of 20 cities with the highest growth rate, while London has slipped down to 10th place. In second place in the rankings is Portsmouth at 8.1 percent, Bristol in 3rd at 8 percent, followed by Glasgow at 7.7 percent and Birmingham at number 5 with 7.4 percent.
In London, the growth in annual house prices has continued to slow, reaching 5.6% in February, the weakest rate seen there since May 2013. However, this research did not look at actual house prices as London has some of the highest in the country. The average price of a home in London is £659,539, according to property website Zoopla. It compares to less than half that amount, at £299,763, for the country as a whole, and £172,000 for Manchester.
It suggested that while growth in Manchester has hit close to 9%, the supply and demand dynamics are not strong enough in regional cities outside southern England to support double digit rates of house price growth.
Richard Donnell from Hometrack has said ‘In cities where affordability remains attractive we expect demand to hold up in the short term albeit with slower growth in sales volumes. Overall we continue to expect the rate of house price growth to moderate over the rest of 2017.’