If you’re considering property investment in the north of England, it’s important to be aware that not every city is equally attractive to investors. Recent research conducted by property consultancy firm Barrows and Forrester has revealed that while there is still capital appreciation in most northern cities, one notable exception stands out. This article will delve into the data and explore which cities are performing well and which ones are facing challenges in terms of house price growth.
Manchester, Leicester, Newcastle Top Performers
The research compiled by Barrows and Forrester highlights that the average monthly rate of house price growth across the major cities in Britain has slowed down to 0.2%. This is a significant reduction compared to the average rate experienced during the Covid-19 period. However, it’s important to note that there are regional variations in performance.
Among the northern cities, Manchester, Leicester, and Newcastle come out as the top performers. These cities have experienced house price growth rates of 0.5% per month in the post-pandemic market. Additionally, they have seen relatively small reductions in the rate of growth when compared to the pandemic boom period, with only a 0.2% to 0.3% decrease per month.
On the flip side, Aberdeen is the only city in the north to see house price growth slip into negative territory. On average, house prices in Aberdeen have fallen by 0.2% per month since the end of the pandemic. Swansea, on the other hand, has experienced a flat growth rate of 0.0%.
Other cities like Bristol, London, Bradford, and Liverpool have registered very marginal growth at an average rate of 0.1% per month. However, Liverpool’s case is worth noting as it was once the darling of investors. The city has seen the largest correction compared to the previous pandemic boom period. The average monthly rate of house price growth in Liverpool has dropped from 1.3% to a negative 1.2% per month, exceeding the one percent reduction seen in any other city.
James Forrester, the managing director of Barrows and Forrester, comments on the research findings. He acknowledges the post-pandemic correction in the property market after a sustained period of booming house prices. He emphasizes the slowdown in house price growth across major cities, noting the fragmented nature of the property market. Forrester points out that Liverpool has been hit hardest by the reduction in market pace, but Manchester, Leicester, and Newcastle continue to perform well.
Conclusion
When considering property investment in the north of England, it’s crucial to understand that not every city is equally attractive to investors. The research from Barrows and Forrester highlights Manchester, Leicester, and Newcastle as the top-performing cities in terms of house price growth, with Aberdeen and Swansea experiencing challenges.
Liverpool, once a favorite location for investors, has seen the largest reduction in house price growth compared to the previous pandemic period. As with any investment, it’s important to conduct thorough research and consider the specific factors affecting each city before making any decisions.