In recent years Northern England’s major cities have established themselves as stand out performers in terms of residential investment and development. Despite Brexit headwinds, the housing markets in the North West and Yorkshire & The Humber have performed above the national average over the past 12 months. The average house price in the North West was £165,000 as at Q3 2018, having increased by 4.9% compared with the prior year. In Yorkshire & The Humber prices increased by 4.4% to £164,000 in the year to Q3 2018.
The prospects for the major urban markets within Northern England are positive. Manchester, Leeds and Liverpool will witness price and rental growth above the UK average over the next five years. These areas however, have all seen significant supply shortfalls in the face of an increase in demand from people wanting to live in the core city centres.
Here are points highlighted in the report: -
• Leeds is now rated as number one prospect for residential price and rental growth in the UK, a position Manchester has held firmly in recent years.
• New development prices in Liverpool are expected to rise by 2.4% pa, slightly above our UK-wide growth expectations of 2.2% pa.
• Average rents for a 2-bedroom flat in Manchester and Leeds remain flat, but has an average increase of 8.1% for Liverpool
• Employment growth in Manchester, Leeds and Liverpool is also expected to be higher than the UK average over the next five years
• The pound is expected to rise to US$1.50 by end-2023.
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