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THE BEST AREAS IN THE U.K FOR PROPERTY INVESTMENT ACCORDING ANNUAL GROWTH RATE

21/03/19

A recent study carried out by Hometrack (UK Cities House Price Index Report - June 2018); has highlighted the top cities for house price improvement from June 2017 – June 2018.  This gives us a good indication of the best areas in the U.K to focus on when looking to purchase property for investment.

The top 6 cities are: Manchester with the highest annual growth rate of 7.4%, followed by Liverpool (7.2%), Birmingham (6.8%), Leicester (6.5%), Cardiff (6.0%) and Sheffield (5.6%).  The average annual city house price growth came in at 4.6% and London at only 0.7%.

Six cities registered real price falls (growth below the 2.4% rate of consumer price inflation) - Southampton, Oxford, Belfast, London, Cambridge and Aberdeen.

Table 2 contains the latest data for the discount from asking to sale prices.  This information provides important insight into the relative strength of local housing markets.

The U.K average asking price discount is 3.7%.  The cities which had a notably lower level of discounting than this were: Manchester (2.2%), Bristol (2.2%), Nottingham (2.3%), Cardiff and Sheffield both at 2.4%.  With Manchester, Cardiff and Sheffield also being in the top 6 for highest annual growth: these could well be cities worth looking into when searching to purchase properties for investment.

When predicting future trends, the study states the expectation is for current trends to continue into the second half of 2018 as housing market forces continue to play out against the backdrop of rising employment and low mortgage rates. The main risks highlighted are: the timing and scale of any increase in mortgage rates and how the BREXIT negotiations unfold in the coming months and in the run up to March 2019.