Liverpool and Manchester continue to lead UK house price growth

Buyer demand has remained strong in the housing market even during the third national lockdown. This demand is continuing to support house price growth, with the north-west leading the way.

The latest index from Zoopla reveals UK house price growth has risen by 4.3% from January 2020 to January 2021. Demand for housing remains at 12.4% higher than this time last year, even during the third country-wide lockdown. This strong demand from buyers is continuing to come forward despite the imminent end to the stamp duty holiday.

Gráinne Gilmore, head of research at Zoopla, comments: “As the growth in demand continues to outstrip the supply of homes, it puts more upwards pressure on prices. We can see this in the +4.3% average price growth in the year to January, matching the highest level of growth seen in nearly four years.”

There continue to be regional variations in the UK housing market. Successive lockdowns has led to a number of people reassessing what they want and need from their homes. Changing work patterns, additional space and a better location mean new property preferences have emerged. And cheaper house prices outside of the capital are continuing to play a major role in these new trends.

North-west in high demand

House prices in Wales and the north-west of England led the way with prices having risen by an average of 5.6% and 5.5% on an annual basis. Zoopla’s index also reveals which cities are seeing particularly strong demand and growth.

Liverpool is at the top of the list, where average values have gone up by an impressive 6.8% since last January. Following closely behind, Manchester has seen a 6.3% rise in house prices. And Leeds is next with a 5.5% increase.

In recent years, the housing markets in these cities have been strengthening even before the current change in conditions. The economy and job markets in the north have developed with more people and businesses relocating to these areas. This in turn has supported investment and growth in the property markets of these regions.

Expectations for the rest of 2021

The stamp duty holiday has provided a major incentive for buyers. The strong appetite from buyers is expected to remain throughout Q1 as buyers continue to search for more space. Others are looking to make location moves due to the rise of remote working.

Gráinne Gilmore states: “Whilst January and February this year are often busier times in the market, this year both demand levels and sales agreed have been noticeably higher than usual.”

With the vaccine roll-out continuing to gain momentum and the roadmap of loosening lockdown restrictions revealed, there is expected to be more demand from sellers, who had put a pause on listing their properties during the lockdown.

Increased confidence and the gradual opening up of the economy will likely lead more sellers to put their properties on the market. This will also continue to support demand as they look for their next home. Zoopla forecasts activity to remain strong through the middle of 2021. During the second half of the year, activity and house price growth may slow down.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT