UK house prices have grown faster in the North West of England than anywhere else in the country. UK property prices have surged by 5.6% in the region over the last 12 months. Such figures are in stark contrast to London. UK property prices in the capital dropped by 0.7% during that period.
Regarding UK house prices, the North West is streets ahead of its regional contemporaries. UK property prices in the South West and the West Midlands grew by 4.4%. Elsewhere, the North East experienced a growth of 2.8%. The London malaise spread out to the further South East region, which only hit a growth rate of 1.8%. The national average growth for UK house prices throughout July 2017 to July 2018 came in at 3.1%.
Great UK House Prices For Investors
The continued growth of UK property prices hasn’t diluted the attractiveness of Manchester property investment to developers and buy to let investors. The highest average house price in the city currently stands at £232,365. By comparison, the average UK property price in London hits a dramatic high of £484,926; over double that of their Northern competitor. Liverpool fares even better than their neighbour in the UK property market. As of September 2018, the average house price in the Northern Powerhouse city is £173,101.
The disparity in house prices between London and the North West region is big news. It is the primary contributory factor for the mass exodus of professionals in their 30s leaving London and heading North. In the year to June 2017, 330,000 people left the confines of the capital. The numbers of people leaving London and heading 200 miles or more north increased by 371% over a 12-month period. They are upping sticks and looking to live and work in Liverpool and Manchester, the UK’s fastest growing and exciting cities.
The poor performance of the London property market may even be responsible for skewing the national average. The 0.7% fall in the capital’s house meant that the UK average growth of 3.1% was the country’s lowest since August 2013, when annual growth of 3.0% was recorded.
Without the strong performances of cities like Liverpool, Manchester, Birmingham and Bristol, London’s slide will have affected the UK’s property market more profoundly.
The Bigger Picture For UK House Prices
Although some may cite 3.1% growth as an indication of a problematic market, the opposite is true. Even during theinstability and uncertainty surrounding Brexit, UK house prices have shown great resilience, particularly in regions outside of London that have been going from strength to strength in recent years.
Reports show that the average price of a house in the UK was £231,000 in July 2018. That represents a £6,000 increase on the previous year. The differences between the home nations shows far better prosperity for England. In England, the average is £245,000. Wales fares the best of the rest at £157,000. Meanwhile, the average house prices come in at intriguing figures of £150,000 in Scotland and £133,000 in Northern Ireland.
Much like the effect seen in regions, it is the home nations with the lowest average prices that have experienced the biggest increase in percentage value. England’s higher value houses rose in value by 2.7%. Wales surged by 4.3%, with Scotland and Northern Ireland jumped up by 4.8% and 4.4% respectively.
There is even better news for buy to let investors. There was a rise of 0.9% in rental prices over the 12-month period to August 2018. The North West offers buy to let investors rental yields and entry costs lower than anywhere else in the UK. Again, the prosperity of the North West in contrast to London. The capital took a 0.3% hit on its rental prices over the 12-month period. For buy to let investors, it means London is becoming less of a viable proposition. For such high property costs, the yields must justify the outlay. Unlike the North West, London cannot do that.
The North West is unique in the UK property market with consistency unmatched by other regions. Property in Liverpool and Manchester is far more favourable than London or most of the other UK regions.