Southern England hit as inflation outpaces house price growth

Manchester, already in the news in the light of Andy Burnham’s political ambitions, has now received a housing market boost from new Rightmove data.

The portal says Manchester is the fastest growing city for prices over the last 10 years, while London is the slowest.

The study analysed millions of supply, demand and pricing data points to look at trends in the property market since 2016.

Spotlight on Manchester

The average asking price for a home in Manchester is £261,891 – 63% higher than 10 years ago when it was £160,422.

By contrast, the average asking price for a home in London is now £687,080, which although makes London the most expensive city in Great Britain, is only 7% higher than 10 years ago when the average price was £639,593.

After inflation, that London average price change is well into negative territory.

Digging deeper into the data and beyond just the cities, localised analysis shows that the top four local areas where prices have grown the fastest over the last ten years are all suburbs of Greater Manchester.

Prices in Levenshulme, Atherton, Droylsden and Failsworth in Greater Manchester have all accelerated by around 80% over the last ten years.

Local property experts suggest growth, investment, affordability, transport links and lifestyle have all played a part in the Manchester success story.

10-year trends

No southern England cities appear in the top ten for fastest growing price over the last ten years. Alternatively, the top ten cities where prices have grown the slowest over the last ten years is made up of half southern England cities.

With southern areas being more expensive, they have had less headroom to accelerate in prices over the last ten years. 

The areas where prices have grown the least are also some of the most expensive overall, including London, Oxford, St. Albans and Winchester as examples.

Again, taking inflation into account, price changes in many south of England cities have effectively been in negative territory.

Additionally, the data indicates there could be a spillover from some major cities into other cities nearby, driven by affordability. 

For example, from Manchester into Salford, Birmingham into Wolverhampton or Leeds into Wakefield and Bradford.Prices in these ‘spillover’ cities are all lower than their counterparts.

The last ten years has seen multiple events affect the property market, bringing short and long-lasting trends. 

The impact of hybrid and remote working is continuing to influence where people can live, and meaning more can consider living outside of London.

Commentary

Colleen Babcock, Rightmove’s property expert says: “Areas with lower starting price points have had more room for growth, which has contributed to a widening north-south divide in price growth trends over the last ten years.

“Some of the shifts behind this are continuing to play out, particularly changes in working patterns. 

“Greater flexibility through hybrid and remote working is still influencing where people choose to live, supporting demand in cities that offer better value and a different lifestyle balance.”

Maurice Kilbride, Managing Director at Maurice Kilbride Residential Sales in Cheadle, Greater Manchester, adds:“Manchester’s growth over the past decade has been extraordinary. Strong employment opportunities, significant inward investment, excellent transport links and a vibrant lifestyle offering have helped attract people from across the UK and beyond.

“What’s particularly noticeable is that the city’s success has extended well beyond the centre, with surrounding suburbs also benefiting from increased demand as buyers look for a balance of space, connectivity and quality of life.

“Having worked in the Greater Manchester property market for over 25 years, we’ve seen the area’s appeal broaden considerably, helping to support sustained price growth and making Manchester one of the UK’s standout property success stories of the last decade.”

Cities with the fastest 10-year price growth