Liverpool, Leicester and Manchester are the cities posting the biggest house price increase, as the South is hit by high costs
- Liverpool saw the average price of a home rise 5.7% during the past year
- It is followed by Leicester at 5.3% and Manchester at 5.1%, revealed Zoopla
- It compares to 1.7% across the country as a whole during the past year
Property prices have risen by more than
five per cent in Liverpool, Leicester and Manchester in the last year,
while cities in the South languish behind, new research shows.
Liverpool
saw the average price of a home rise 5.7 per cent, followed by
Leicester at 5.3 per cent and Manchester at 5.1 per cent.
The
average increase in cities across the country during the past year was a
more modest 1.7 per cent, according to property website Zoopla - the
lowest level for seven years.
It stems from weaker demand due to a lack of affordability and the higher cost of moving home, Zoopla said.
In particular, the South has been hit as the slowdown in London ripples outwards, even extending to Bristol in the South West.
Price growth in southern cities ranges from a drop of 0.6 per cent in Oxford to an increase of 2.2 per cent in Bristol.
Uncertainty about Brexit has been a compounding factor, with households delaying their decisions about moving home.
The increase in values in northern cities
has been attributed to rising employment rates and more accessible price
levels, which are rising from a lower base.
Prices in Glasgow and Liverpool are still only just above the price levels seen during the credit crisis of 2008.
Liverpool
and Glasgow have recorded the highest increase in housing sales since
2015, with transactions up 19 per cent and 12 per cent respectively.
On average, property sales increased eight per cent across all cities in northern England in the three years to 2018.
It prompted experts to suggest considering
northern cities if you're house hunting and do not need to be in London
or the South East.
Mark Harris, chief
executive of mortgage broker SPF Private Clients, says: 'When it comes
to property prices, regional differences can be significant.
'London
and the south of England have seen considerable property price rises to
the extent that many first-time buyers are struggling to buy,
particularly if they don't have assistance from the Bank of Mum and
Dad.
'Other parts of the country look
to be more attainable from a property ownership point of view, with
thriving cities such as Liverpool and Glasgow attracting those priced
out of the south.
'These cities have
subsequently seen greater price growth recently but because it is coming
off a lower base, they are still relatively affordable.
'If you don't have to work in London, these northern options may be worth exploring.'
Richard Donnell of Zoopla added: 'The
housing cycle continues to unfold at different speeds across British
cities. London has led the overall market along with Cambridge and
Oxford.
'While sales in London are down 20 per cent on 2015 levels, prices are flat over the last 12 months.
'The
signs of firmer pricing we recorded last month have continued into
March with fewer London postcodes registering price falls.
'More realistic pricing and better value for money for potential buyers means sales volumes have stabilised.
'Cities
across southern England are 18 to 24 months behind London. House prices
have increased significantly ahead of earnings in recent years causing
the rate of price growth to now slow due to weaker demand and lower
sales volumes.
'Price growth is set to remain weak as affordability levels start to re-align with what buyers are prepared to spend.
'House prices and sales volumes continue to increase in regional cities outside southern England.
'Prices in these cities have recorded modest gains over the course of the last decade and affordability remains attractive.
'As
employment levels and incomes rise, households have the confidence to
bid up the cost of housing, with four cities registering price growth of
5 per cent or more per annum.'
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