In a recent study conducted by property consultancy firm Barrows and Forrester, an intriguing pattern of house price appreciation has emerged across the north of England, although one significant exception stands out. The research sheds light on the state of the British property market and its regional variations, with Manchester, Leicester, and Newcastle outshining other major cities.
According to data from Barrows and Forrester, the average monthly rate of house price growth in major cities across the United Kingdom has significantly decelerated to 0.2 per cent. However, this overall average conceals a more nuanced picture where Manchester, Leicester, and Newcastle are bucking the trend with more robust performances.
The research findings indicate that, on average, house prices in major British cities have experienced a meagre growth rate of 0.2 per cent per month since the conclusion of the pandemic – a noteworthy drop of 0.4 per cent per month when compared to the average growth rate during the Covid-impacted period.
Delving deeper into the specifics, all 15 analysed cities have witnessed a reduction in the average monthly house price growth rate after the post-pandemic boom. Nonetheless, disparities in resilience are evident among these cities in navigating the current market slowdown.
Manchester and Leicester have emerged as standout performers, both boasting a monthly growth rate of 0.5 per cent in the post-pandemic landscape. Newcastle closely trails behind with a commendable average monthly growth rate of 0.4 per cent. Impressively, these cities have demonstrated relatively minor reductions compared to the pandemic boom period, with growth rates dipping by only 0.2 and 0.3 per cent per month, respectively.
In stark contrast, Aberdeen remains the sole city to have slipped into negative territory for house price growth post-pandemic, experiencing an average monthly decrease of 0.2 per cent. Meanwhile, Swansea has plateaued with an unvaried 0.0 per cent rate.
Examining the growth rates of other major cities, Bristol, London, Bradford, and Liverpool have recorded marginal growth, averaging at a rate of 0.1 per cent per month. However, Liverpool – once an investor favourite – has undergone a significant correction compared to the preceding pandemic boom. The average monthly growth rate for house prices in the city plummeted from a positive 1.3 per cent during the pandemic to a notable decline of 1.2 per cent per month. Notably, no other city has experienced a reduction exceeding the one per cent threshold.
Commenting on the findings, James Forrester, Managing Director of Barrows and Forrester, stated, “The past year has undoubtedly witnessed a post-pandemic correction, following a prolonged boom period that propelled house prices to unprecedented heights. While the market remains resilient, there is an evident deceleration in the pace of house price growth, observable across our major cities.”
Forrester further emphasized the fragmented nature of the property market, where the extent of the slowdown diverges significantly among cities. He underscored Liverpool’s pronounced impact from the overall market slowdown, while highlighting the continued strong performance of Manchester, Leicester, and Newcastle despite the broader economic landscape.