House prices in Manchester are going up faster than anywhere in the country, says new report

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House prices in Manchester are going up faster than anywhere in the country, says new report

Manchester is leading the way in house price growth, while property values across the south is slowing down.

According to research compiled by Hometrack, the average house price in Manchester is now £153,600 with the surge in growth at 8.8 compared to a year earlier.

Hometrack, which tracks house price movements across the UK’s 20 biggest cities, said the dynamics of the housing market were shifting, as cities such as London and Cambridge, which had been driving price growth, were now seeing a significant slowdown.

Hometrack said that in Manchester, Newcastle and Birmingham, annual house price growth had lifted to levels not seen in these cities since 2005.

In Newcastle, house prices were up by 5.6% year-on-year and in Birmingham they had seen an 8% uplift.

By contrast, house price growth in London, Oxford and Cambridge had slowed to less than 5% for the first time in five years, Hometrack found.

It said affordability pressures, as well as tax changes for investors, with a recent stamp duty hike for buy-to-let landlords, had constrained demand in these areas.

“This is shifting the dynamics of the housing market. Cities that have been driving house price growth over the last two to three years, such as London and Cambridge, are now seeing a significant slowdown, while large regional cities continue to register robust and sustained levels of house price growth.”

Here are the average house prices in March across the cities covered by Hometrack’s index, with the annual change::

Manchester £153,600, 8.8%

Birmingham £150,900, 8%

Bristol £264,200, 7.3%

Edinburgh £208,000, 7.1%

Glasgow £117,500, 6.8%

Nottingham £142,600, 6.7%

Portsmouth £225,000, 6.7%

Leicester £162,100, 6.6%

Liverpool £116,500, 6.5%

Southampton £223,100, 6.4%

Bournemouth £278,100, 6.4%

Sheffield £132,100, 5.7%

Newcastle £127,100, 5.6%

Cardiff £197,300, 5.4%

Leeds £156,700, 5.2%

London £490,100, 4.9%

Oxford £411,600, 3.7%

Source: www.manchestereveningnews.co.uk