This month we cover the fastest growing property markets by region, the latest on the leasehold scandal, England’s most expensive streets and more…
Liverpool and Leicester are among the fastest-growing property markets
Some of the fastest-growing regional property markets include towns and cities from the East Midlands and the North West.
Leicester has been named as the area with the strongest growth in house prices year-on-year at 4.8%. The current average house price in Leicester stands at £182,900. Liverpool also remains one of the strongest in terms of property price growth with 4.6% year-on-year growth in both 2018 and 2019. The average price of a property in Liverpool at the moment is £124,700. Manchester also joins the ranks for fastest-growing cities in terms of average house prices with a 4.5% growth year-on-year and an average property price of £173,000
The North East has also been experiencing some strong growth. Leeds’ house prices grew by an average of 3.2% last year and 3.5% this year. Newcastle property prices grew by 1.1% last year and 2.0% this year.
The regions experiencing the slowest growth are Portsmouth and Oxford with 0% and -0.4% growth year-on-year.
Leasehold and freehold price gap widens
Land Registry data has revealed a significant increase in the difference between leasehold properties and their freehold equivalents. The gap now stands at 12.3%, compared to 5% in 2014.
Despite the biggest difference of 14.3% in 2011, the gap was narrowing until 2014. From then on, we’ve seen continual increases, suggesting a mistrust in the entire concept of leaseholds.
Jen Gadsdon, Leasehold Enfranchisement Specialist Solicitor at Birchall Blackburn Law, said: “The data published by the Land Registry reflects the concerns that clients have in purchasing a leasehold house especially following the announcement in June this year from the Communities Secretary banning the sale of leasehold houses. This has created uncertainty and a lack of confidence in the leasehold structure and anyone buying a leasehold house needs to be aware of the potential effect on value.”
Marc von Grundherr, Director of Benham and Reeves Estate Agents, commented: “There is no doubt that the leasehold scandal has had a severe impact on buyer sentiment and the amount people are willing to pay to avoid any of the potential nightmares that unfolded last year. So much so that the premium paid for a freehold home has already hit its highest levels in nearly a decade and will no doubt continue to do so.”
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House price growth stays buoyant in the North and Wales
Annual house price growth for regions in the North and Wales have grown by an average of 3.3%, compared to an average fall in house prices in southern regions of -0.4%.
The findings, published by in RightMove’s monthly House Price Index show that house prices continue to grow in the north, while the south has been experiencing a drop in house prices compared to this time last year.
The North West saw the biggest annual growth in house prices with an average of 3.5%, closely followed by the North East at 3.4%. In the south, Greater London’s annual house price growth fell by -2.1% and -1.1% in the South East.
Miles Shipside, Rightmove director and housing market analyst, said: “There’s obviously some year-on-year bounce occurring in prices in the North West, and also in the North East, Yorkshire & the Humber and Wales, which all have new sellers asking at least 3% more than at this time last year. Buyer affordability and investor activity create and maintain market momentum, but these factors are lacking in parts of the south.”
Altrincham and Alderley Edge among the locations with the most expensive streets outside London
Altrincham, Macclesfield and Alderley Edge are home to some of the most expensive streets outside of London and the south when it comes to house prices, according to Zoopla’s latest Richlist.
In particular, Broadway in Altrincham is the road with the highest property values at an average of £2,983,494 and Whitebarn Road in Alderley Edge coming in at a close second with a property value average of £2,830,689.
The North West is the richest region of the North with 404 streets with an average property value of £1,000,000 or more. Other top towns making the Richlist include the aforementioned Macclesfield, Wilmslow and Altrincham.
The highest value towns where property is most sought-after in the North West include areas such as Cheadle, Sale and Littleborough, as well as popular cities such as Manchester and Salford.
Thinking of buying or selling in the near future? Or perhaps you’ve already found your dream home? Keep us in mind when the time comes to instruct a solicitor: