Property DriveBuy research has found that house price growth across Britain’s major cities continues to trail their surrounding commuter belts in most cases although three cities are now bucking the wider trend.
The firm analysed the average monthly rate of house price growth over the past 12 months across major cities and compared it with the average monthly growth across the local authorities forming each city’s commuter belt.
In the majority of cases, commuter belt locations delivered stronger growth. Cities including Birmingham, Nottingham, Leeds, Sheffield, Bristol, Cardiff and Glasgow all recorded lower monthly rates of growth than their surrounding areas.
In Newcastle, house price performance was balanced, with both the city and its commuter belt posting identical average monthly growth of 0.50%.
THE TOP THREE
However, three cities outperformed their commuter belts when it came to consistent house price growth.
Liverpool delivered the strongest performance, with average house prices rising by 0.77% per month over the last year, more than double the 0.33% seen across its commuter belt.
Manchester also outpaced surrounding areas, with city house prices increasing by 0.47% per month compared to 0.32% across its commuter belt.
Edinburgh completed the trio, recording average monthly growth of 0.44%, ahead of the 0.23% seen in neighbouring commuter locations.
At the other end of the spectrum, London was the only major city to see a decline, with house prices falling at an average monthly rate of -0.08% over the last year. In contrast, the capital’s commuter belt recorded positive growth of 0.12% per month.
BIG CITY BOOST
Steve Foreman (main picture, inset), Founder and CEO of Property DriveBuy, says: “Commuter belt locations have traditionally been some of the strongest performing segments of the property market, largely because they offer buyers greater space and affordability, whilst remaining within commutable distance of major cities.
“However, our analysis shows that this isn’t a uniform trend and there are major cities where house price growth is currently outperforming surrounding areas.
“For buyers, this highlights the importance of keeping an open mind and exploring all parts of the market, as there are clear opportunities emerging in cities that continue to see consistent growth, as well as in commuter locations.
“Of course, even across the commuter belts themselves, house price performance can vary drastically and so having a full picture of what’s happening locally is key to making the right decision.”
