For some months now, house prices in London have been skyrocketing fuelled by a shortage of affordable housing and a high demand for property in the capital.
This demand hasn’t translated to rising house prices throughout the UK before, but a new report is showing that property prices are starting to pick up in other major cities too.
The stats will likely come as good news to those looking to sell their homes in cities other than London, as it seems to indicate that the property market is starting to pick up for more of the country. House price growth in Britain’s 20 biggest cities is expected to hit 10 per cent by the end of the year compared to where they were last year, and some key areas are growing even faster.
Houses in the north
Other than London, the areas that experienced the biggest property price growth are Oxford and Cambridge. This is likely to be due to their proximity to London, as both cities are around 50 miles from the capital. However, not all of the rising house prices were focused in the south of the country.
Since this time last year, property prices in Manchester have grown 7%, putting the average home in the area at £141,200. Properties in Glasgow have had an even better year, up 8.3% at an average of £110,500. The average property in Liverpool is now worth £109,900, representing an increase of 5.1% in a year.
However, there’s still a way to go until property prices in these areas reach the peak that was seen in 2007. House prices in Glasgow are still down 9.7% from when they were at their highest eight years ago. Prices in the area stopped falling three years ago though, and this year’s increase is a good sign that demand is beginning to pick up again.
If you’re looking to remortgage your house, you’re likely to welcome the news that property prices are rising in many areas. This could mean that the value of your home has risen, meaning there could be more equity in your property. If you’ve been paying off your mortgage for a number of years, this means that you could have a higher loan-to-value (LTV) if you were to remortgage now.
It might be worth speaking to a mortgage adviser to find out if there are any remortgage deals currently available which could mean you’re paying less for your mortgage every month. Decide if you want to lock into a fixed rate product for a number of years or you’re happy for your payments to vary as the Bank of England base rate changes. You could also speak to a mortgage broker like Ocean, who can find the best remortgage deal for you from their panel of lenders, some of which are not available on the high street.