House prices to see 28% hike by 2019
CBRE's Regional Land report has predicted that house prices in the North West will increase by 28% in the next five years.
The current average house price in the region is £145,000, with an 8% growth seen so far this year. This is lower than the national average, with house prices at £186,000 and a 12% increase in 2014.
The cheapest houses in the country can be found in the North East, which has a £125,000 average price.
House price growth forecast; expected five year growth 2015-2019
|
Current Average Value (£) |
2014 (%) |
Forecast 2015-2019 (%) |
|
|
Prime Central London |
1,560,000 |
12 |
31 |
|
London |
400,404 |
20 |
30 |
|
South East |
262,976 |
16 |
30 |
|
South West |
207,420 |
11 |
30 |
|
East Anglia |
188,960 |
12 |
29 |
|
East Midlands |
154,145 |
9 |
29 |
|
North East |
125,106 |
10 |
29 |
|
Yorkshire & The Humber |
142,661 |
10 |
29 |
|
North West |
144,851 |
8 |
28 |
|
Wales |
145,812 |
9 |
28 |
|
West Midlands |
160,383 |
9 |
28 |
|
Scotland |
141,872 |
8 |
24 |
|
UK |
186,544 |
12 |
30 |
Nick Mullins, senior director of land and development at CBRE in Manchester said: "The land market continues to improve in the North West predominantly as a result of Help to Buy. There is interest at all levels of the market, but most significantly in the mid-market, sub £250,000 and first-time buyer market with city centre development returning to Manchester and Liverpool.
"This is starting to feed through to land values, with Manchester increasing particularly rapidly. This is driven principally by regional developers as opposed to the PLC house builders who are yet to return to the city centre. There is also increasing activity from the registered providers, many of whom are diversifying into the PRS sector to increase competitiveness."
Jennet Siebrits, head of residential research at CBRE said: "CBRE expects sustained demand across the traditional regional housing markets into 2015, but regional price inflation is likely to soften compared to 2014 price performance. We expect the prime and near-prime market in 2015 to remain strong, with secondary land values beginning to level off, as regional house price and wage inflation put the squeeze on developer profit margins."
