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Manchester and Liverpool Found to Have Strongest UK Property Market ‘Ripple Effect’

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    Research Shows Proximity to Major City Can Increase House Prices

    Research from estate agents Yopa has revealed that Manchester and Liverpool have the strongest house price growth ‘ripple effect’ across surrounding local authorities.

    The study used property price growth data from the last five years to analyse twelve major British cities and their surrounding areas to determine how proximity to these urban centres impacts growth in nearby local authorities.

    London was found to have the weakest effect on house values in bordering areas, while Manchester was found to have the largest impact, with fellow North West city Liverpool not far behind.

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      North West Cities Had Strongest Impact on Surrounding Areas

      Yopa found that Manchester had the strongest price growth ripple effect in the past five years of all the cities analysed. Property prices in the city have surged by 37.4%, and surrounding local authorities have experienced price growth of 35.1%.

      A similar figure was found for those who invest in Liverpool property, where the second strongest ripple effect was found. The city’s house prices have grown 34.4%, and nearby local authorities have seen an average property price increase of 32.8% over the last five years.

      The weakest ripple effect was from London. House prices in the capital have increased by 7.9%, and the bordering local authorities have seen an average rise of 12.2%. London property market news shows that property price growth in the city has slowed down considerably in recent years, but it remains the most expensive region for housing costs.

      Steve Anderson, National Franchise Director at Yopa, said: “There are plenty of reasons that homebuyers living within major cities look from the inside out, although this migration is predominantly driven by the search for greater affordability, larger homes and more green space. In doing so, they are also able to remain within arm’s reach of their city of choice, allowing for an easier commute to work or to socialise.

      “Of course, this increased demand also helps to stimulate house price growth in these surrounding areas, and while the housing market ripple effect has long been highlighted across the London market, it’s the likes of Manchester, Liverpool and Nottingham that now boast the strongest benefit in this respect.” Why not check out the new buy to let investment calculator tool today!

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      What Causes the Ripple Effect From Major Cities?

      Living close to a major city is preferable for many people, mainly due to increased job opportunities and the convenience of residing near all the amenities, facilities, and active social life that a big city can offer.

      However, residing in the centre of a city itself is not always desirable for various reasons. This can be due to price or the need for more spacious properties. It can also be because of the more peaceful lifestyle a suburban home can offer. Either way, a property nearby but not in a major city is an attractive prospect for many people.

      A healthy number of homebuyers searching for properties in these areas can cause housing costs to rise much more rapidly and positively affect the local housing markets, boosting demand and transaction activity.

      To learn more about the UK property market, take a look at some of our latest area guides highlighting topics such as available investment property in Telford and available investment property in Middlesbrough.

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      Author

      Jessica Ferris

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      Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.

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