0:04 AM, 19th August 2024, About 3 months ago
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Yorkshire cities are leading the way in property investment returns, outpacing traditional hotspots like London.
According to the investment platform easyMoney, three Yorkshire cities have become Britain’s property investment hotspots.
easyMoney has analysed average house price growth data in Britain across 15 major cities between December 2021 and today.
In December 2021, the average house price in Britain was £269,273. Today, the average stands at £288,120, marking a growth of 7%.
However, some major cities have outpaced this national average, emerging as Britain’s top property investment hotspots despite economic challenges.
Sheffield leads the way, with average house prices soaring by 12.7% from £192,524 in 2021 to £216,934. Bradford follows closely, with a 10.3% increase, bringing prices up from £158,562 to £174,930. Leeds, ranks third with a 10% rise, now averaging £231,743.
Other cities showing strong growth include Newcastle (9.9%), Leicester (9.5%), Bristol (9.4%), Edinburgh (9.1%), Cardiff (8.8%), Glasgow (8.7%), Nottingham (8.5%), and Liverpool (7.7%)
Jason Ferrando, chief executive officer of easyMoney said: “When the Bank of England started increasing interest rates at the end of 2021, it made property purchasing more expensive for the vast majority of people who require the help of a mortgage.
“This includes property investors of all shapes and sizes. And because buying became more expensive, fewer buyers entered the market and this fall in demand means prices have struggled.
“But as is always the case with the British housing market, even when the national picture shows muted growth, there are always corners and pockets where prices are rising at pace. In the past few years, the best of these pockets appear to have been Yorkshire cities.
“The best, most astute property investors are wise to the fact that when price growth stutters in one city, it will be booming in another, so a smart investor who normally invests in Manchester will have shifted their attention to Sheffield, for example, for the past couple of years.
“If you’re looking to make good returns from property investment, it’s vital to have a good overview of the national market and all of its individual local markets, too.”
Not all cities have seen strong price growth since the end of 2021. Some of the major investment cities have particularly struggled, including London and Manchester, both of which have seen growth of just 2.3%.
Brighton has seen growth of 4.5%, while Birmingham prices have risen by 5.4%.
