Research by a property consultancy shows that there is still some capital appreciation in most of the north of England - but with at last one notable exception.
Data from Barrows and Forrester shows that the average monthly rate of house price growth across Britain’s major cities has slowed to 0.2 per cent, although regional variations in performance see Manchester, Leicester and Newcastle performing much better.
The research shows that, on average, house prices across Britain’s major cities have increased at a rate of just 0.2 per cent per month since the end of the pandemic, a reduction of 0.4 per cent per month when compared to the average rate enjoyed throughout the Covid period.
The research shows that all 15 cities analysed have seen a reduction in the average monthly rate of house price growth seen since the end of the pandemic boom period; however, some cities are weathering the current market slowdown better than others.
House prices across both Manchester and Leicester have climbed at a rate 0.5 per cent per month in the post-pandemic market, with Newcastle not far behind with a 0.4 per cent average monthly rate of growth.
What’s more, these cities have seen some of the slightest reductions when compared to the pandemic boom period, with the rate of house price growth only reducing by 0.2 and 0.3 per cent per month respectively.
In contrast, Aberdeen is the only city to see house price growth slip into negative territory post pandemic, falling by an average of 0.2 per cent per month, while Swansea has seen a flat 0.0 per cent rate.
Bristol, London, Bradford and Liverpool have registered very marginal growth at an average rate of 0.1= per cent per month.
But Liverpool - once the darling of investors - has seen the largest correction when compared to the previous pandemic boom period. The average monthly rate of house price growth across the city has fallen from a positive 1.3 per cent since the pandemic, to a drop of 1.2 per cent per month. No other city has seen this reduction exceed the one per cent mark.
Managing director of Barrows and Forrester, James Forrester, comments: “We’ve undoubtedly seen a post pandemic correction over the last year or so, following such a sustained boom period that drove house prices to all new highs. While the market is standing firm, there has been a clear slowdown in the rate of house price growth seen and this is no different across our major cities.
“Of course, the property market is fragmented in nature and so the extent of this slow down also differs considerably from one city to the next. Liverpool has certainly been hit hardest in terms of the overall reduction in the pace of the market, while Manchester, Leicester and Newcastle are still posting a strong performance despite the wider landscape.”