Manchester squeezes past London with strongest annual house price growth


City house price growth is now being led by regional cities, with Manchester at the top, and not by the old favourite London, Hometrack’s city house price index has revealed.

Out of the country’s top 20 cities for annual house price growth, London has now dropped to number 10 with a growth of 5.6%, a significant decrease from 12.8% twelve months ago.

Other cities, apart from Manchester which saw a strong growth of 8.8% include Portsmouth up 8.1% year on year, Bristol up 8%, Glasgow up 7.7%, Birmingham up 7.4%, Leicester up 7.2%, Liverpool up 6.8% and Bournemouth up 6.2%. Aberdeen is the only city to see prices fall with a decline of 5.9% year on year.

The report points out that one of the main factors impacting the growth rate of cities in England’s south s pressure through affordability.

And whilst housing turnover has been pretty flat for the last three years in high value, low affordability cities such as London, Bristol, Oxford and Cambridge, growth in the North’s bigger cities like Manchester, Birmingham and Liverpool is almost unstoppable.

Sales volumes in Liverpool and Manchester have increased by over 40% over the last three years, and have increased by about 10% in 2016 alone.

Overall, the report suggests a slower 2017 when it comes to house price growth with the biggest achievements still happening in the country’s regional cities, such as Birmingham and Newcastle.

The Hometrack report adds:

“We expect sales volumes to fall by around 5% in the highest value cities over 2017, as the market and pricing levels start to adjust to price sensitive and affordability constrained demand. We expect slower growth in volumes in regional cities where there remains continued upside for market activity and house prices on more attractive affordability.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800


Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator


Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.


Not a member? Sign up for free

Manchester squeezes past London with strongest annual house price growth

Manchester squeezes past London with strongest annual house price growth


By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.