Manchester has recently been dubbed the UK’s newest ‘property powerhouse,’ following a significant spike in house prices, a trend setting it apart from other major cities, including London. This rise in property values in Manchester, as detailed by Open Property Group, underscores a robust market, contrasted sharply against a backdrop of general market slowdown across the country.
The latest data released by the government highlights that Manchester’s property prices are climbing much faster than the national average. This increase is a strong indicator of market health, primarily driven by escalating demand in the region.
Comparative Analysis Across Major Cities
In a detailed study by Open Property Group, house price performance was assessed across ten major UK cities over the past year. The findings reveal a general downturn in the national housing market, with an average decrease of 1.5 percent. This downturn reflects the impacts of rising mortgage rates and the ongoing cost of living crisis affecting most of the country.
In contrast, while cities like London saw a steep decline in property prices by 3.9 percent, and others like Bradford and Birmingham also experienced declines over 2 percent, not all cities are facing downward trends. Leeds and Newcastle managed to record growths of 0.6 percent and 2.1 percent, respectively. However, Manchester outshone all with a significant 5.8 percent rise in average house prices year-on-year.
Manchester’s Market Dynamics
Despite its smaller size compared to London and Birmingham, Manchester has shown impressive performance in the property market. According to Rightmove, the average price of properties in Manchester was £296,989 over the last year. The sales were dominated by semi-detached houses, fetching an average of £328,004. Terraced houses and flats were sold for lower average prices, at £244,622 and £198,905 respectively.
Current Challenges in the Market
Although Manchester’s property market is on an upswing, the city has not been entirely shielded from broader market adversities. Recent transaction figures reveal a stark -38.2 percent drop in home sales from the previous year, marking it as the largest annual decline in buyer activity among the cities studied. This downturn translates to reduced market activity, with only 295 homes sold in Manchester in 2023, a number only higher than Newcastle and Leicester.
Expert Insights
Jason Harris-Cohen, CEO of Open Property Group, commented on Manchester’s remarkable performance relative to other cities like Birmingham and even London. He noted that while the news is positive for homeowners in Manchester, the market still poses challenges, particularly due to the higher borrowing costs which are deterring buyers. This environment is forcing sellers to wait longer to secure buyers, pushing some to opt for quick sale platforms to expedite their sales and proceed with their next purchases.