House price increases in Manchester track levels not seen since 2005

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House prices continue to rise in Manchester faster than the average across the UK,

Figures out for March by Hometrack shows that the impetus for faster house price growth is emanating from large regional cities such as Newcastle, Glasgow and Edinburgh with Newcastle.

These cities have registered above average price increases over the first quarter of 2017 but Manchester remains the fastest growing city covered by the index where the annual growth rate is 8.8% followed by Birmingham at 8.0%.

The average house in Manchester now costs £153,600 while the report also highlights how the balance between new supply and sales remains ‘tight’ in Birmingham and Manchester while market conditions have weakened in London. 

In the case of Birmingham (8.0%), Manchester (8.8%) and Newcastle (5.6%), continued improvement in underlying market conditions has resulted in the annual rate price increases reaching levels not seen since early-2005.

In contrast, house price growth in London, Oxford and Cambridge has slowed to less than 5% for the first time in five years as affordability pressures, and tax changes for investors, constrain demand. It is clear that in London sales are failing to keep pace with supply. Stock that is on the market will require downward price adjustments in order to sell.

The report concludes that buyers outside the south of England appear to be shrugging off concerns over Brexit and a squeeze on real incomes to take advantage of low mortgage rates. 

 The announcement of the General Election may create some short term uncertainty although comparing the profile of sales volumes between election years and non-election years there is no material difference.