Salford is seeing an annual growth in house prices of 14%. Leicester of 11%, Norwich of 10%. What do these seemingly unlikely cities have in common? Where is there high house price growth in the UK and what do these cities have to do with it?
Let’s find out!
First off, to Salford. Salford is the UK’s booming new business hotspot with yearly growth of 85% and 1,393 new businesses opening in the first three months of 2017. It’s expected Salford will have 5,200 new businesses by the end of the year.
This growth has been matched by the housing market. The average property in Salford is £144,425, which is 33% lower than the average £216,000 in the rest of England and Wales. Growth in the rest of Britain has been 4.1% but Salford is booming at 14% average price growth over the past twelve months.
How about the other cities? Leicester’s second place represents a business startup growth of 35% coupled with house price growth of 11%. Grabbing the last place on the podium Norwich has a growth in business startups of 22% and house prices of 10%.
It looks like the question of “where is there high house price growth in the UK?” can be answered with: where there are high numbers of startups and business growth.
However, there are some exceptions. Oxford has 18% growth in startups and 8% growth in house prices. Whereas Liverpool, with the fourth highest growth in startups, above Oxford, has seen an average 4% house price growth, despite a 22% growth in new startups.
Why Salford for high house price growth and business growth?
The North West is leading the way for regional economic growth and we looked at how cultural institutions such as the BBC moving to Salford have had an impact.
Startups in TV and media can open near an already-established presence in the industry with the BBC and ITV. Technology companies and other entertainment companies such as video games have followed. Investment in business clusters, co-working and startup initiatives along with redevelopment and wider cultural work has given the area a more vibrant appeal.
House price growth has been achievable coming off starting prices lower than the UK average. Nearby Manchester has the fifth most expensive rental market in the UK and Manchester has previously been in the top cities for startups, largely in the ‘professional, scientific and technical’ field.
The Northern Powerhouse effect is not only helping industry but having a knock-on effect to high house price growth.
Where else is there high house price growth in the UK?
Leicester was mentioned in a CBI productivity study as a city with high productivity growth potential, citing a 14% improvement in productivity if journey times into the city from surrounding areas could be shortened.
The city’s “cultural quarter” investment and redevelopment included many provisions for new businesses including the Leicester Creative Business Depot and Maker’s Yard. The two universities provide innovation centres and a co-working space is due to open in 2018. House prices have grown in the city by 11% in the last year.
If you are wondering where there is high house price growth in the UK, and what other factors could be affecting it, as well as how that might affect buying or renting a home, speak to Garrington for more information.