House price growth in UK regional cities still outstripping London

House price growth in UK regional cities still outstripping London

The latest index from HomeTrack, which analyses property price trends across key UK cities, has revealed that it is still the regional locations that are posting the highest increases. With house price growth in London in the 12 months up to March 2018 only registering 1.6%, it is cities such as Edinburgh, Nottingham and Manchester that are leading the way with growths of 8.1%, 8% and 7.4% respectively. This is why investors looking for strong capital growth are drifting away from the capital and focusing on key UK regional cities.

Whilst there is an abundance of property for sale in London, it is the general scarcity and undersupply of housing across the regions that are pushing prices up, with properties coming onto the market and being sold swiftly due to the high demand.

Reporting on the index, HomeTrack stated: “In cities where house price growth is above average, we find that new supply is broadly in line with sales. The ratio of sales to new supply is around 1 to 1.1 times in Manchester, Birmingham, Edinburgh and Glasgow. This creates scarcity and, together with attractive affordability levels, supports above average capital growth.”

Manchester is a prime example of this. Even though it has one of the UK’s fastest growing economies and populations, property supply in Manchester simply can’t keep up with demand. With a population growing 15 times faster than new homes are being built, it is little wonder that property is commanding such a premium and that Manchester is such a strong property investment hotspot.