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If you keep up to date with property news, you will have seen that the North-West of England has experienced a property boom. Across the UK, we have seen a sharp increase in house prices. However, the North-West has topped the leader boards with an increase of over 15%.
What is driving the property boom?
The latest figures for May, released by the Office of National Statistics show the average UK home now costs £255,000. This is a 10% increase on last year – the fastest rate of growth for 14 years. There are several reasons for this growth. One reason is that many buyers wanted to complete their purchases before the end of stamp duty holiday. Also, in the wake of the pandemic, we saw priorities change as buyers began to look for bigger houses with room for a home office, and outdoor space.
This increase in demand was met by a lack of supply, which has caused prices to rise. As a result, house prices in the UK rose by 10%. The North-West surpassed every region with its property price boom. The region saw the highest annual house price growth, with average prices increasing by 15.2%. There were also significant increases in Wales (up 13.3%), Scotland (up 12.1%) and the North-East of England (up 11.8%). At the bottom of the list, London recorded the slowest property price rise, of 5.2%.
The North-West is an appealing region for those looking to get more for their money. With more demand for larger properties, both homebuyers and investors are looking towards the North-West for property investment. Likewise, property markets in the North-East and Yorkshire and the Humber have performed strongly for the same reason. Liverpool, in particular, has had its highest growth rate in 15 years. The city is also home to some of the lowest average property prices in the UK.
What does this mean for the property market?
Many are saying that this property boom is a sign that the North-South divide is finally closing. Manchester has been significantly outperforming London for a while now and the future of the city is looking bright. When taking into account property prices, rental yields, and stamp duty savings, the North-West offers plentiful investor opportunities.
Property prices and housing demand are both high in the North. This is great news for developers and investors looking to secure long-term investments.
We are excited to see the changes in the North-West, and no doubt the pandemic has had a role to play in this. The question everyone is thinking is – will this trend continue?
Of course, with any spike, we expect the pace to slow down eventually. However, at the end of 2020, the property market didn’t face the seasonal slowdown typically seen at the end of the year. The peak in activity soared through to the new year and the market has continued to remain resilient. Especially considering the lack of homes for sale, this is putting significant pressure on house prices as demand is continuing to soar.
That said, experts would suggest that the North-West property boom will begin to slow down soon – but not completely. Manchester is currently being re-vamped with multi-billion-pound regeneration projects and plenty of businesses are migrating to the city. Also, the early anticipated HS2 will further drive up demand in the city, making journey times faster than ever.
Statistics are showing that the North-West is pulling ahead of London in the property market race. Buyers in the North-West continue to profit from an inexpensive market, in an area experiencing huge growth and regeneration.
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