House prices in North West to rise fastest in the UK over the next five years
House prices in the North West are set to rise at the fastest rate over the next five years according to a new report.
Published by Savills, the north-south property markets are expected to flip with high growth in the north and stunted performance in and around the capital.
The report predicts a huge 21.6% rise in prices in the North West, followed by over 20% growth in Yorkshire and Humberside and 19% growth in the East and West Midlands.
More stunted growth is expected in London (4.5%) as well as the East and South East at 9.3% respectively.
Average house price growth across the UK will likely sit around the 15% mark, adding an extra £32,000 to the value of the average home by the end of 2023.
House price growth forecast
North West – 21.6%
Yorkshire and Humberside – 20.5%
East Midlands – 19.3%
West Midlands – 19.3%
Wales – 19.3%
Scotland – 18.2%
North East – 17.6%
South West – 12.6%
South East – 9.3%
East – 9.3%
London – 4.3%
Head of residential research at Savills, Lucian Cook said of the report that: “Brexit angst is a major factor for market sentiment right now, particularly in London but it’s the legacy of the global financial crisis – mortgage regulation in particular – combined with gradually rising interest rates that will really shape the market over the longer term.
“That legacy will limit house price growth but it should also protect the market from a correction.”
North West cities proving value
The resurgence of property markets across the largest towns and cities in the North West has been a success story over the last 10 years. Growing student populations and sustained regeneration of former brownfield sites, as well as turbo-charged local business growth, have combined as stunted growth in the capital leads investors to explore new markets.
Cities such as Manchester and Liverpool have become the first-choice UK regions for property investment from both national and international development companies as a result.
Whilst still offering some of the most affordable inner-city properties in the UK, homes in Liverpool and Manchester have seen marked growth over the last few years, with prices increasing by just under 7% over the last 12 months alone according to data from Hometrack – nearly twice the rate of other UK cities.
Insight Director at Hometrack, Richard Donnell said of the results: “City-level house price growth remains well above average in the most affordable cities.”
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