Manchester is currently seeing the best house price growth in the country, figures revealed today.
The average price of a home in the northern city increased by 9 per cent over the past year – a faster rate than the property market in any other large British city.
The findings by Hometrack claimed prices in Manchester grew by 8.8 per cent in February.
The average price of a home in Manchester has increased by 9% year-on-year, according to Hometrack
It means Manchester is at the top of the rankings of the 20 cities with the highest growth in house prices, while London has dropped to 10th place.
It was followed by Portsmouth at 9.1 per cent, Bristol at 8 per cent, Glasgow at 7.7 per cent and Birmingham at 7.4 per cent.
In London, the growth in annual house prices has continued to slow, reaching 5.6 per cent in February, the weakest rate seen there since May 2013.
Hometrack said house price growth in London is now acting as a drag on the overall rate of house price growth across the UK’s major cities.
The average annual house price increase across major cities is 6.4 per cent, which is higher than in London.
However, the research did not look at actual house prices as London has some of the highest in the country.
The average price of a home in London is £659,539, according to property website Zoopla. It compares to less than half that amount, at £299,763, for the country as a whole, and £172,000 for Manchester.
The average price of a home in Bristol has increased by an impressive 8% year-on-year
Aberdeen remains the only major city in its research where house prices have fallen year-on-year, down 9 per cent.
Hometrack said affordability levels in southern cities like London, Bristol, Oxford and Cambridge is stretched, with the housing market also being affected by weaker investor demand and the impact of the Brexit vote.
It suggested that while growth in Manchester has hit close to 9 per cent, the supply and demand dynamics are not strong enough in regional cities outside southern England to support double digit rates of house price growth.
Richard Donnell, insight director at Hometrack, said: ‘Buyers are fully aware of the Government’s plans and timescales for Brexit but there remains huge uncertainty over what this means for the economy over the next two to three years and beyond.
‘In cities where affordability remains attractive we expect demand to hold up in the short term albeit with slower growth in sales volumes. Overall we continue to expect the rate of house price growth to moderate over the rest of 2017.’