Manchester house prices surge as first time buyers look for “cheaper cities”.

Manchester (And Edinburgh) continue to register the highest rates of growth at around 7% year on year. Let’s look at some of the reasons why the North West city is the UK’s property hot spot.

A report from HomeTrack suggests Manchester has seen the highest rise house price in England year on year at 7%. The average house price now stands at £163,200. The affordability factor is got the attention

Supply and demand.

As outlined by estate agent Carol Henderson: The main reason for the house price rise, is the shortage of detached and semi-detached property coming to the market. A property in Manchester, in good condition and priced correctly will sell straight away. Many areas like Hopwood have a list of first time buyers waiting to snap up anything that comes on the market.

Rise in Shared ownership schemes

201 has seen a rise in shared ownership incentives for first time buyers. This has led to a rise in demand. Particularly in Manchester and the North West.

Schemes like the Equity Loan scheme: available to first-time buyers and existing homeowners who want to buy a ‘new build’ house. The purchase price must be no more than £600,000. Under this scheme, you can borrow 20% of the purchase price interest-free for the first five years as long as you have at least a 5% deposit.

If you live in London, you can borrow up to 40% of the purchase price. The scheme is available until 2021. Find out about more government shared ownership schemes.

How does Manchester stack up

Looking at the UK as a whole, only Edinburgh has seen a higher rise in prices year on year. Aberdeen has seen a drop of almost 6%. London house prices have remained fairly stagnant.

house price rise year on year in Manchester and north west

A little bit cheaper.

Recent studies show that Manchester has a high salary:rent ratio (A good marker for estimating the expendable income of people living in a city). The same marker can be assumed for Mortgages.

Also, on a recent list of most desirable places in the whole of the UK to live and work… Manchester comes in at a healthy 5th. The city happens to be quite green, with 32 per cent of the city made up of green space. The city also has a strong business community.

All these recent developments have made Manchester a bit of a hot spot for first time buyers.

Here at Newbridge Financial, we specialise in first time buyer mortgages. And with our new office in Manchester we’d love to help anyone moving to Manchester so source a new mortgage. Try our live UK mortgage search to get started.

Start a live chat below or call us on: 01619132477 if you need some assistance.