Data from the Office for National Statistics (ONS) shows that house prices in the North West are set to perform extremely strongly in 2021, following an impressive 2020.
Over the last 12 months, the UK House Price Index (powered by Dataloft) shows that property values in the North West showed the strongest year-on-year growth of anywhere in Britain, matched only by the East Midlands and Yorkshire.
On average, house prices in the UK grew by 5.4% over the year to October 2020, but in the North West that figure reached a high of 6.6% over the same time period.
Many areas which are traditionally popular with homebuyers and buy to let property investors did not achieve anything close to gains that high – London (3.9%), the South East (4.7%) and the East of England (3.4%) all fell far short, and it is likely that investors in particular will continue looking towards cities like Manchester which are leading the way in the country’s best performing regions.
The surge in sales reported by the ONS over Summer 2020 boosted the market to a four-year high, and there is no indication that these market conditions will change anytime soon – leading to increased optimism among investors.
The latest data from Rightmove – included in its January 2021 House Price Index – confirm the data provided by the ONS.
Indeed, Rightmove shows that house price growth in the North West was even stronger over 2020 when the year is taken as a whole. Whereas the national annual average increase in January 2021 has been recorded at just 3.3%, the North West has enjoyed growth of 7% over the same period.
Compare that the London which is actually showing depreciation of 1.4% on a 12-month basis according to the same Rightmove data.
On top of that remarkable growth in the North West, Rightmove analysis projects that this growth will continue across 2021, with the number of sales up 10% and enquiries from prospective buyers having increased by 12% annually as of January 2021. Additionally, the company reports a 33% increase in searches year-on-year to date.
Tim Bannister, Rightmove’s Director of Property Data, said: “Rightmove’s early January market-leading indicators of buyer demand and the number of actual sales being agreed are looking robust, showing that there are many compelling reasons other than the stamp duty savings to make buyers enter the market in 2021”
Ronald Garret, Managing Director of Alliance Investments, is feeling equally optimistic about 2021, saying: “Despite many challenges, 2020 was another successful year for a housing market which continues to grow, particularly in North West cities like Manchester where demand is high and growing.
“Early indications show that, if anything, 2021 will prove to be even more impressive as pent up demand is released. Lockdown has caused many people to reassess what they want out of their home – especially in the busiest city centre markets.”