According to Hometrack’s UK Cities House Price Index, property prices rose by 6.9% in Liverpool in the year to September, with an average price of £120,500. Birmingham follows in second place in the list, with properties rising by 6.5% in the same period while averaging £163,600.
“City level house price growth remains well above average in the most affordable cities,” said Richard Donnell, insight director at Hometrack.
“While the rate of growth has moderated slightly prices in five cities are still rising twice as fast as the growth in earnings. We expect continued price growth in the most affordable markets over the remainder of the year.”
The figures point to it being a great time to invest in Liverpool, which was also recently named as the buy-to-let capital of the UK. Birmingham follows the Merseyside city, just ahead of midlands near-neighbour Leicester which saw property prices increase by 6.4% and average value of £174,800.
Manchester is fourth in the list, in which property prices grew by 6.2% while averaging £167,800. Sheffield has also showed an excellent performance this year, prices in the Steel City having increased by 5.8% compared to 4.6% in 2017, while a property averages out at £139,600.
The report’s London data showed that while property prices continue to fall in the capital, the rate of decline appears to be slowing. The number of postcodes showing month-on-month price falls is now at 44%, down from a peak of 70% in December 2017. There was a year-on-year fall of 0.4% for the whole of London, but some suburbs saw prices increase, with Barking and Dagenham showing a rise of 2.3%.
The outlook appears to be that the market remains cautious but careful analysis of conditions, especially in the northern cities and Birmingham, could yield benefits and bargains for buyers and investors.