London is home to the weakest housing market ‘ripple effect’

London is home to the weakest housing market ‘ripple effect’

0:03 AM, 14th May 2024, About 6 months ago

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While it may have been known for its strong commuter belt effect on house prices, London now has the weakest ‘ripple effect’, research reveals.

Estate agents Yopa have analysed house price growth over the past five years in 12 major British cities.

It then compared this growth to the average increase in local authorities bordering each city.

The results show Manchester offers the best house price performance in surrounding areas as prices have grown by an impressive 35.1% in the last five years.

Search for greater affordability

The firm’s national franchise director, Steve Anderson, said: “There are plenty of reasons that homebuyers living within major cities look from the inside out, although this migration is predominantly driven by the search for greater affordability, larger homes and more green space.

“In doing so, they are also able to remain within arm’s reach of their city of choice, allowing for an easier commute to work or to socialise.”

He added: “Of course, this increased demand also helps to stimulate house price growth in these surrounding areas and while the housing market ripple effect has long been highlighted across the London market.

“It’s the likes of Manchester, Liverpool and Nottingham that now boast the strongest benefit in this respect.”

Robust growth in bordering areas

After Manchester, Yopa’s analyses found that Liverpool is in third place with a 32.8% ripple effect, while Nottingham, Edinburgh and Cardiff also saw robust growth in bordering areas.

While London has traditionally benefited from a strong ripple effect, its house prices have only grown by 7.9% in the past five years.

This stagnant growth is reflected in the surrounding areas, with an average increase of just 12.2%.

The findings suggest a changing landscape in the UK housing market with major cities outside the capital offering a more attractive combination of affordability and lifestyle.


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