Major UK Cities Experiencing Strong House Price Growth

The major cities of the UK have experienced exceptionally strong growth in residential property prices over the first quarter of this year. Across the 20 biggest cities in the country, a new report from Hometrack said, house prices grew at the fastest rate seen for twelve years.

Growth across the initial three months of 2016 was 4.2% on average across the 20 biggest UK cities, Hometrack’s price index says. This is the fastest quarterly growth rate since the first quarter of 2004. The annual growth figure across the major cities hit 10.8%. This is noticeably stronger than the UK-wide average, which was just 8.7% year-on-year. These increases brought the average price of a property in one of the 20 biggest cities to £235,000.

Liverpool and London topped the list when it came to quarterly gains. In the first three months of the year, both of this cities saw the average property increase in price by 4.1%. There is, however, considerable value disparity between the two cities – as indeed there is between London and the rest of the UK. The average residential property in London is valued at £468,100 after first-quarter growth, while in Liverpool the average homes costs a rather more affordable £113,100.

Furthermore, despite these strong gains, Liverpool’s house prices remain down by 11% compared to their pre-crisis peak. Many are taking this as a sign that Liverpool’s prices have plenty of room for growth left, particularly investors who are taking this as a sign that there is a lot of potential for capital appreciation when investing in the city.

Behind London and Liverpool, the next biggest quarterly figure belongs to Cardiff. Quarterly price appreciation in Wales’ premier city was 3.5%. Southampton and Bristol follow close behind, with properties in each of these cities growing by 3.3% across the first quarter of 2016.

Taking an annual perspective, the city with the fastest-growing house prices was Cambridge. The famed university city saw year-on-year growth of 15.6%. Second place belongs to London, with 14.2%, and third on the list is Bristol, where the average property grew in value by 13.5% compared to the same period in 2015.

A number of factors helped push forward house prices in the UK’s major cities across the first quarter of the year. One example is the increase in stamp duty, introduced in April. More specifically, the desire of investors and second home buyers to push transactions through before this increase took effect led to an increase in completions in the early part of 2016, with both agents and mortgage brokers reporting a rush on purchases as a result.

Hometrack predicts that house price growth will continue. However, they do predict that the rate of growth will slow somewhat, especially in higher-value properties. In the immediate future, a slowdown is likely to be caused by the end of the rush to beat stamp duty increases and, especially, uncertainty surrounding the impact of the EU referendum on the property market.

Mark Burns

Mark Burns is a Director and Property Investment Consultant at Hopwood House. With over 10 years' experience in property investment, Mark has provided investors with a wide range of opportunities in exotic locations around the world.

You May Also Enjoy

Estate Agent Talk

How can Cash House Buying Agencies thrive in 2022?

Like many other industries in the world, the UK property market is constantly evolving. Industry players therefore need to keep a keen eye on the key markers that define the state of the industry. As 2022 ushers in new changes and realities, industry players like cash house buying agencies need to arm themselves with current…
Read More
composite gates
Home and Living

Composite Garden Fencing / Gates – Pros & Cons

As much as many of us enjoy great relationships with our neighbours, we do also relish privacy between our properties / boundaries. Years ago I remember rows of gardens with no more that a wire fence with wooden posts separating each with some having missing sections and even those totally without. Many neighbours would have…
Read More
Breaking News

BREAKING PROPERTY NEWS – 30/06/2022

Daily bite-sized proptech and property news in partnership with Proptech-X.   Zoopla names new members of its Lettings Advisory Board, selected to support its goal to help inform how industry responds to a fast-evolving policy environment for agents, landlords and renters Zoopla, the UK’s most comprehensive property destination, is pleased to announce new members of…
Read More
Estate Agent Talk

Why Your Multifamily Building Needs An Access Control System

Being responsible for a multifamily building requires keeping safety a priority. Security can be a concern in a building with multiple people coming in and out, which is why your multifamily building needs an access control system. There are many reasons why an access control system can be of use to a dwelling with more…
Read More
empty property uk 2022
Estate Agent Talk

How many empty homes are there in England?

The total number of empty dwellings as at 13 September 2021 was 468,000 – a decrease of 11,000 or 2.4% on the previous year as quoted on the official government website: Local Authority Council Tax base England 2021 Long term empty homes are dwellings which are unoccupied for a period of 6 months or more…
Read More
Breaking News

New Research from TwentyEA Shows Available Stock Has Almost Halved Compared with Five Years Ago

Despite the fact that UK inflation has hit a fourty year high of 9%, agents across the UK are still seeing demand for properties outstripping supply, with new instructions largely flat during May, according to a recent RICS survey in June 2022. The RICS survey also suggests there is little prospect of more homes coming…
Read More