The release of the latest Hometrack house price index, Manchester and Birmingham are the two cities that have seen the largest annual growth price from August 2016 to 2017. The analysis concluded and showed how Manchester has seen its prices rise by as much as 7.3%, it managed to top Birmingham, which scored 6.7%. Edinburgh has also seen a vast improvement in its house price index, with a marked increase of 6.6% in the past year.
Richard Donnell, who is the Research and Insight Director at Hometrack described how: “House prices continue to rise on the back of sustained price inflation in large regional cities as unemployment falls and mortgage rates remain low. Weak growth in London is acting as a drag on the headline rate of growth. We expect this pattern to remain a feature of the market for the rest of the year and into 2018.”
He continued to state how: “The accumulation of housing equity from rising house prices means there is a major opportunity from innovation in financial and housing products to help households leverage or access housing equity. This is a complex and evolving market with consumer demands being shaped by demographic and economic change.”
Mr Donnell concluded by stating: “The markets for down-sizing and equity release are relatively small but further pressure for innovation are inevitable as households seek additional ways to assist younger generations into housing and onto the housing ladder while also facing up to the challenges of how to fund the cost of living into later life. While there is a significant amount of housing equity in aggregate, a varied distribution in the scale of housing equity available to different households means different solutions will be required to meet consumer demand as this market segment evolves.”
Ged McPartlin, who is the director at Ascend Properties, commented how: “The north is booming as expected, and from an agent’s point of view, these figures truly reflect what we’re seeing in the market today – Manchester named as the best city for growth and experiencing a strong increase of 7.3% as demand surges for property across the city. While buyer demand will always be high in the city centre, the new university year also results in a rush of tenants who are desperate to secure a decent property before the term starts, so more opportunities are cropping up for landlords. It’s a busy time of year for the market and the price rise clearly reflects this”
This is a positive stride forward for Manchester as the city continues to become the housing powerhouse of the North. The annual rise of 7.3% only seems to be increasing as time goes on, which is a definite step in the right direction for the housing scene in Manchester. It is presenting an equal opportunity for those old and young to purchase houses and get themselves on the property ladder. Hopefully the trend continues into the next calendar year.