Manchester Property Growth Leads UK Housing Market Recovery
The UK housing market is showing signs of recovery, with Manchester property growth leading the way in price increases. The latest figures reveal a notable north-south divide, as more affordable northern regions outperform the already expensive areas in the south.
A More Balanced Housing Market
According to recent data from Zoopla’s house price index, the UK housing market is now more balanced than it has been in the last five years. This balance stems from an increase in both buyer and seller activity across the country. Average property prices have seen a modest 0.5% rise compared to the previous year, with a significant boost in buyer demand (up by 20%) and sales agreements (up by 23%).
Although the entire UK is experiencing recovery, Manchester stands out as one of the most robust property markets. Prices in the city have increased by 2% over the past year, more than any other English city.
The North-South Divide in the Housing Market
The disparity between the north and south of England has been a defining characteristic of the housing market for years. This gap is partly due to housing affordability, which tends to be better in northern regions, as well as the improving economic conditions in these areas.
In particular, cities like Manchester, Birmingham, and Liverpool have seen significant investment, while London and other southern regions appear to be cooling off. Reports suggest that a number of landlords in the capital are selling up, contributing to a less competitive market compared to the north.
Although house prices are rising in many areas across the UK, the south-east, south-west, and East Midlands are experiencing slight declines. These regions have seen reduced buyer interest, indicating a possible stagnation in market activity.
Manchester: A Property Investment Hotspot
Manchester has long been a favourite among investors and homebuyers alike. The city has experienced impressive growth, with property investors seeing a 65% rise in values over the past eight years. This trend shows no sign of slowing, thanks to ongoing regeneration and redevelopment projects.
The continued transformation of Manchester means the city remains a prime location for property investment. With the potential for further growth, buyers are still eager to purchase homes and investments, maintaining Manchester’s position at the forefront of property price increases.
Only Belfast surpasses Manchester in house price growth, with a 5.1% rise since June 2023. Liverpool follows closely behind Manchester with a 1.7% increase in property prices, confirming the strength of northern property markets.
Manchester Property Growth: Regional Growth Trends
Zooming out to the regional level, Northern Ireland has experienced the most significant average house price growth (5.1%) over the past year. This is followed by the North West (1.9%) and Scotland (1.9%), which also saw notable increases. The north-east of England recorded a 1.3% rise, while the West Midlands, Yorkshire, and Wales all reported 1.1% growth.
In contrast, some regions, especially in the south of England, experienced minor annual declines. Despite these dips, individual locations within these areas have shown varying performance, reflecting the localised nature of the market.
Manchester Property Growth: Optimism in the Market
Property industry experts are optimistic about the future of the housing market. Nathan Emerson, CEO of Propertymark, emphasised the positive outlook, stating that market confidence is returning as the economy stabilises. He called for the UK Government to seize this opportunity by clarifying plans for the Planning and Infrastructure Bill. He believes this will help meet the growing housing demand. Additionally, it will advance the government’s goal of building two million homes next term.
Opportunities in the Northern Housing Market
The steady growth of northern property markets, especially in Manchester, presents exciting opportunities for investors and buyers alike. With continued development and regeneration, Manchester is expected to remain a top performer, offering high potential returns.
Investors should explore opportunities in Manchester, Liverpool, and other northern cities. Moreover, affordability and economic growth drive strong demand for property investment.
Whether you’re considering purchasing your first home or expanding your property portfolio, northern England continues to offer excellent opportunities.
If you’re interested in investing in Manchester property or exploring other profitable locations in the UK, contact us today to speak with one of our property consultants.
