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    A Rising Market

    Zoopla’s recent data report shows that currently, the North West’s housing market is one of the best performing in the UK, with the highest annual increase in house prices in England. The data published shows that houses in the North have increased by 0.7% compared to 2023. Although the annual house price growth doesn’t look like much of a rise, it’s promising for the North West property market as the UK overall saw a decrease of 0.5%. 

    North-South Divide

    The growth contributes to the North-South divide when it comes to the property market. The four regions in the North which include the North West, North East, Yorkshire and Humber, saw various amounts of growth, whereas other areas located in the South including, the East of England, London, South East and South West, saw a decline in the market in the past year.

    Last year, the North also performed better than the South with the increase in annual property prices. In May 2023, the North saw an annual increase of 2.7%, with house prices rising to £211,392, from the 2022 average of £205,875. In the South, the price increase was only 0.8%, with house prices growing from £385,719 in 2022 to £388,917 in a year.

    Factors Effecting

    The Divide

    One of the main explanations is the large majority of individuals and businesses moving away from London, due to the fact it has become far too expensive for most people to live. Therefore, other cities like Manchester, Liverpool, and Leeds are now more appealing locations. London’s cost of living, especially the cost of housing and general expenses, has become unaffordable for many residents. With the city’s property prices and rents being among the highest in the country, this makes it difficult for average workers, and especially young professionals and families, to afford to own property in that area.

    Properties in the North are not only more affordable but they also generate a much better return on investments compared to the South. Therefore, investing in the North has become increasingly more attractive in recent years. In the whole of England in the past year, Liverpool saw the highest growth of 1.1%, followed by Manchester, Leeds and Newcastle at 0.8%, and Sheffield at 0.7%. As a result of this, these cities are receiving the highest demand from both investors and buyers and CityRise has amazing investment opportunities across these cities!

    Why is the North

    Performing Better?

    Regeneration projects in cities across the North West help to explain why the property market is the fastest growing in England. Here are some examples of cities that are experiencing rapid growth.

    Liverpool has undergone impressive projects aiming to transform the city, one of the main schemes was the Liverpool Waters Project. This project has brought to life a huge portion of the city, increasing its appeal to students, working professionals, tourists, and residents. The city’s reputation as a prime location for property investment and buy-to-let landlords is cemented by the high rental yields, the promising property market and the strong capital appreciation.

    Manchester is experiencing significant urban renewal through various regeneration projects. The city holds a great reputation, especially among students and young professionals, which largely contributes to the rising demand in its rental market. With predictions of continuous population growth, Manchester remains a preferred destination for many property investors whose goals are building wealth in the long term. 

    North West Rents See the

    Biggest Growth

    According to Goodlord, the North West has seen the biggest annual growth in rents, rising by an impressive 8.1% over the past year. The average rental cost in the area is now £960, up from £888 in May 2023. This is a larger growth than England as a whole, which has seen a 6% growth compared to May 2023. 

    The latest statistics from Goodlord have shown that the average cost of a rental property has risen by 1.4% in May 2024, up to £1,183 compared to April’s average of £1,166. This is the highest average rent seen since October 2023 when the cost of rental properties reached £1,190 per month. This data shows that the Northwest saw the second-biggest monthly rent increase. However, this region still leads the way when it comes to rental growth annually.

    There has been a significant rise in the build-to-rent sector, as well as there being a rise in the popularity of more high-end rental developments for young professionals in city centres. Many new developments come with additional amenities such as shared spaces, concierge services and outdoor areas, which increases the desirability of the development.

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