The latest report from Hometrack has suggested that a number of property investors are looking north for their next purchase.
Capital growth looks promising in more northern regions, with the housing market in London continuing to be subdued.
Slower market conditions in London contributed to a cooling in the headline rate of growth for Hometrack’s UK Cities Index. This is now running at 6.9%, down from the 7.2% seen one month earlier and 7.9% last year.
The twenty-city average now stands at £245,900. Manchester saw the greatest annual uplift outside of southern England, with a rise of 8.3% in the last year.
Ged McPartlin, Sales Director at Ascend Properties, noted: ‘For years we have stressed that the Manchester property market was going to enjoy hugely positive growth, owing to affordability, widespread investment across the city, excellent transport links and employment prospects, with swathes of young professionals now choosing to make it home.’
Alongside Manchester, London has been overtaken by Birmingham and Liverpool, where prices are increasing off a lower base, with affordability levels remaining attractive.
Graham Davidson, Managing Director of Sequre Property Investment, commented: ‘Regardless of shifting political conditions, London has long been overdue a cooling off, with property prices spiralling out of control and home ownership becoming an increasingly distant hope.’
‘From an investment point of view, as the Hometrack report shows, the rise of the Northern regions is now a primary focus – with lower entry prices and yields that are simply not available in the capital anymore. Our own business has seen numerous investors taking their money out of London and we expect this to be a growing trend in 2017,’ he concluded.