"Increased demand helps to stimulate house price growth in these surrounding areas and while the housing market ripple effect has long been highlighted across the London market, it’s the likes of Manchester, Liverpool and Nottingham that now boast the strongest benefit in this respect"
- Steve Anderson - Yopa
The latest research by Yopa has revealed that London is home to the weakest ripple effect when it comes to house price growth across local authorities surrounding the city, while the property market surrounding Manchester has seen the highest rate of all major cities.
Yopa analysed house price growth over the last five years across 12 major cities in Britain, before looking at the average rate of house price growth seen across each of the local authorities surrounding these major cities, to reveal which city boasts the strongest housing market ripple effect.
For many homebuyers, city living simply isn’t affordable and many look to the surrounding areas to remain within arm’s reach whether it be for work or to socialise. For others, these surrounding areas offer larger homes, a lower crime rate, better schools or a slower pace of life - all desirable factors for those climbing the ladder or starting a family.
Whatever the reason, a migration of urban homebuyers from major cities to the surrounding areas can have a positive impact on these bordering housing markets and this benefit has been well documented when it comes to the London commuter belt, in particular.
However, the research by Yopa shows that, much like the London market itself, the local authority housing markets surrounding London have struggled of late.
In fact, while house prices have increased by just 7.9% across London over the past five years, this rate of growth climbs to an average of just 12.2% across the local authorities that border the capital - the lowest ripple effect house price boost of all major cities analysed.
To put this performance into context, Bristol is home to the second weakest housing market ripple effect, however, house prices across the city itself are up 21.9% in the last five years, while surrounding local authorities have seen an average increase of 23.2%.
But it’s Manchester that tops the table when it comes to the strongest housing market ripple effect over the last five years. House prices in the city have soared by 37.4%, while the surrounding areas have seen an average increase of 35.1%.
Liverpool isn’t far behind its North West rival, where house prices are up 34.4%, while the city’s ripple effect has boosted house prices in surrounding local authorities by an average of 32.8% over the last five years.
Nottingham (32.6%), Edinburgh (32.2%) and Cardiff (31.4%) also boast some of the strongest rates of house price growth across the local authorities bordering each city.
Yopa’s National Franchise Director, Steve Anderson, commented: “There are plenty of reasons that homebuyers living within major cities look from the inside out, although this migration is predominantly driven by the search for greater affordability, larger homes and more green space.
"In doing so, they are also able to remain within arm’s reach of their city of choice, allowing for an easier commute to work or to socialise.
"Of course, this increased demand also helps to stimulate house price growth in these surrounding areas and while the housing market ripple effect has long been highlighted across the London market, it’s the likes of Manchester, Liverpool and Nottingham that now boast the strongest benefit in this respect.”
