Manchester sees fastest growing house prices

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Manchester has become the city with the fastest growing house prices in the UK, while London has slipped to tenth place, according to the latest city house price index by Hometrack.

House prices in Manchester have risen by 8.8 per cent in the year to February 2017, meanwhile, according to the index, London prices have risen by 5.6 in that period.

It was also revealed that the country had seen house price growth of six per cent, while 20 of the UK’s major cities saw growth slow to 6.4 per cent. Aberdeen was the only major city to see a fall in house prices, dropping by 5.9 per cent.

House prices in Manchester now sit at an average of £151,800, compared to an average of £488,700 in London.

Meanwhile, Portsmouth saw a rise of 8.1 per cent, taking the average house price to £225,600, and Bristol recorded growth of eight per cent, resulting in an average house price of £261,900.

The report released by Hometrack stated: “Affordability pressures continue to impact growth rates in high-value cities in southern England. While growth in Manchester has hit close to nine per cent, the supply/demand dynamics are not strong enough in regional cities outside southern England to support double digit rates of house price growth.”

Hometrack also said it expects sales volumes to fall by around five per cent in the highest value cities over the course of this year, as the market and pricing levels start to adjust to price sensitive and affordability constrained demand.

The company added that it expects to see slower growth in the number of sales in regional cities, where there remains a “continued upside for market activity” and more attractive house prices.