2017年 08月 01日

UK House prices set to increase up to 7% next year

House price growth across the UK’s biggest cities is set to be stronger this year than previously predicted, according to an index.

Values across the 20 biggest cities are now expected by property analysts Hometrack to increase by 6 per cent to 7 per cent over the course of 2017, higher than its previous prediction of 4 per cent made in December 2016.

Continued robust house price growth in large and vibrant regional cities, such as Birmingham, Manchester and Leeds, despite uncertainty over Brexit, is behind the raised expectations.

While annual house price growth in London has slowed to 2.6 per cent, its lowest level in over five years, Birmingham is now the fastest-growing major city for house prices, with a 7.8 per cent annual increase.

Hometrack expects growth to continue over the remainder of 2017 as prices are rising off a lower base.

The average price of a property in Birmingham, at £154,900, is less than a third of that in London, at £492,700.

Other large regional cities outside the South of England, such as Manchester and Leeds, continue to register consistent and robust house price growth, supported by the same economic factors that are driving growth in Birmingham, Hometrack said.