Recent data has revealed how the north, and in particular Leeds and Manchester, dominated the UK’s property market during 2020. According to a recent house price index report from Zoopla, Manchester (5.7%), Leeds (5.6%), Nottingham (5.4%) and Liverpool (5.3%) had the highest house price growth last year. As people rush to buy and invest in property before the end of the stamp duty holiday, the north of England will likely perform well into 2021 too.
Above Average Results
The Zoopla report shows that the average UK house price growth during 2020 was below northern cities at 3.9%. On a regional level, northern areas outperformed the country’s average too. In the north-west of England, which includes cities such as Manchester and Liverpool, house prices increased by 5% year-on-year. Just behind at 4.9% was Yorkshire and the Humber, which contains Leeds and Sheffield.
On a UK-wide level, the country witnessed the strongest growth since August 2017 and was up 1.3% in 2019.
At the beginning of the global pandemic and national lockdowns, there were concerns that the UK’s property market would decline. But people have continued to buy and invest in property, with demand levels so high that the market has defied the traditional winter slowdown.
Despite rising property prices in the north, prices are still much more affordable than for similar properties in the south. These savings are expected to drive continued demand from owner-occupiers and those investing in property even after the end of the stamp duty holiday.
People Heading North
And it’s not just residents and buy-to-let investors looking to northern cities. Development companies are also investing more in northern parts of the country where overheads are cheaper but demand is still high.
Thanks to this increasing demand, property prices in the north – and in particular the north-west – will continue to rise over the coming years. Zoopla predicts a particularly strong start to 2021 due to buyers and property investors rushing to beat the stamp duty holiday deadline.
The UK property market is expected to remain resilient throughout the rest of the year too. According to Savills, the north-west will lead the way with property values growing by 8.5% over the next 12 months. These prices are forecasted to rise by a huge 24.1% over the next five years. This is the strongest increase out of any UK region.
Find Out More
If you’re interested in investing in property in the north, contact the experts at North Property Group and start your investment journey today.