Manchester has recorded the strongest house price growth of any major city in Great Britain over the last decade, with asking prices rising by 63% since 2016 – nearly 10 times London’s growth rate of just 7%.
Rightmove’s analysis of millions of supply, demand and pricing data points shows the traditional growth engines of the UK property market have changed. None of the ten fastest-growing cities over the last decade is in southern England, but half of the ten slowest-growing cities are.
The portal found the average asking price for a home in Manchester has risen from £160,422 in 2016 to £261,891 today. London’s average asking price, in contrast, has increased from £639,593 to £687,080 over the same period.
More room for growth
According to Rightmove, areas with lower starting price points have had much more room for growth, while some of the country’s most expensive markets have seen more limited gains. It means that, although London remains Britain’s most expensive housing market, many lower-priced regional cities have delivered far better capital growth.
And Manchester’s success has not been confined to just the city centre. Rightmove’s analysis found that the four fastest-growing neighbourhoods over the last ten years are also all in Greater Manchester. Asking prices in Levenshulme, Atherton, Droylsden and Failsworth have all risen by around 80%.
A combination of factors
Local property experts cite a combination of economic growth, investment, transport improvements, affordability and lifestyle factors as the key drivers of the area’s performance.
The data also shows what Rightmove describes as a spillover effect into neighbouring cities as buyers look for more affordable alternatives. Salford, which borders Manchester and has lower average asking prices, also ranks among the strongest performers over the decade, while Wolverhampton appears to have benefited from its proximity to Birmingham. Similar patterns can be seen around Leeds, with Wakefield and Bradford also making the top ten.
Wolverhampton matched Manchester’s 63% growth over the decade, and Newport recorded growth of 57%. Nottingham followed at 53%, and Wakefield and Salford both posted gains of 52%.
Manchester is a big winner of the past decade
Colleen Babcock, Property Expert at Rightmove, says: “Manchester is a big winner of the past decade, with strong price growth underlining its growing popularity among buyers. By contrast, London has seen much slower growth over the same period, reflecting how higher prices in the capital have limited how much further buyers can stretch.
“Looking at the bigger picture, affordability has been a central theme shaping these trends. Areas with lower starting price points have had more room for growth, which has contributed to a widening north-south divide in price growth trends over the last ten years.
The shifts behind this are continuing to play out
“Some of the shifts behind this are continuing to play out, particularly changes in working patterns. Greater flexibility through hybrid and remote working is still influencing where people choose to live, supporting demand in cities that offer better value and a different lifestyle balance.”
