According to new research compiled by Hometrack, Manchester is leading the way in house price growth while property values in the south of the UK are slowing down.
The average house price in Manchester is currently at £153,600 which is an 8.8% increase on this time last year.
Hometrack closely monitor house price movements across the UK’s 20 biggest cities and it is notable that the dynamics of the housing market are definitely shifting. Cities such as London and Cambridge, which were previously the driving force of house price growth, are now seeing a slowdown whereas cities such as Manchester, Newcastle and Birmingham are seeing increases in house price growth not seen in these cities since 2005.
In Birmingham, house prices have seen an 8% uplift year-on-year and Newcastle has seen a 5.6% increase. In comparison, house price growth in London, Oxford and Cambridge has slowed to less than 5% for the first time in five years.
This slowdown has been attributed to affordability pressures, tax changes for investors and recent stamp duty hikes for buy-to-let landlords.