The numbers confirm what many have accepted as the reality for some time now.
In 2018, property prices in London fell. But, in other cities in the UK, it was a completely different story.
New data from online agent Zoopla shows that average prices in London last year fell by 0.2%, underlining the slowdown in activity the market has witnessed in recent months.
Prices reaching an affordability ceiling and increased purchasing costs are just some of the factors attributed to the slowdown, as London’s property market begins to look increasingly unattractive to many global investors.
“House prices in London have been falling for almost 12 months, while the rate of growth has slowed across cities in southern England, a result of growing affordability pressures, higher transaction costs and increased uncertainty,” analysed Richard Donnell, Research and Insight Director at Zoopla.
But, the research shows high growth has been recorded in other UK cities. Since June 2016, property prices in Manchester have increased 15%, while there’s also been a 16% uplift in average prices in Birmingham, too.
Donnell added: “The strongest performing cities are outside south eastern England where affordability remains attractive and employment levels are rising. We expect current trends in price growth to continue across the rest of this year, with prices rising in line with earnings for much of the UK but lower growth and some house prices falls in London and the South.”
With increased levels of commercial investment and job numbers, more people are moving to live in Manchester – and this is having a significant impact on the performance of the city’s undersupplied property market.
In addition to capital growth, investors in Manchester are also enjoying better yield growth from their property, compared with those with real estate in London.
The latest figures from LendInvest’s rental index suggest that average yields in Manchester are currently 69% higher than the average for the Greater London area.