28 Nov 2018
Most of Britain’s regional cities have shown an increase in house prices, brushing off the effects of Brexit.
Although prices in London may have been clearly impacted by Brexit, the same cannot be said about most regional cities. Hometrack revealed that ever since the June 2016 vote, Birmingham – being Britain’s second-largest city – saw a 14.7% increase in house prices. Edinburgh and Manchester followed with a rise of 14.1% and 14% respectively.
In the latest October figures, the cities boasting the highest annual average house price growth were Leicester (with 7.7%), Edinburgh (7.4%), Manchester (6.3%), Birmingham (6.2%), Nottingham (6.1%) and Liverpool (6%).
These regions do not share the same struggles to the extent that London does in terms of affordability and stamp duty increases – which were only worsened by the uncertainty surrounding the UK’s exit from the EU.
Richard Donnell, insight director at Hometrack, said: “Two and a half years on from the Brexit vote, our analysis reveals a limited direct impact from Brexit uncertainty on the housing market thus far. Large regional cities continue to register above-average house price inflation, with the discount between asking and sales prices narrowing on rising sales volumes.
“Households in regional cities are still taking advantage of low mortgage rates and rising employment to bid up the cost of housing, shrugging off uncertainty around the economic outlook. The discounts from asking prices in the regions continue to narrow, suggesting further upward pressure on values in the near future.”
Although London has seen a sharp slowdown in activity, there has still been an almost 2% increase in average prices since the referendum. The only city to have seen average prices fall since then has been Aberdeen.