Sheffield and Bradford among cities that provide best investment returns, research reveals

Market analysis by easyMoney has revealed that Sheffield and Bradford are among the cities that have provided the best property investment returns in the years since interest rates started to rise in December 2021.

Meanwhile, typical investment hotspots such as London, Birmingham, and Manchester have struggled to keep pace.

EasyMoney has analysed average house price growth data*in Britain across 15 major cities between December 2021 and today.

The data revealed that in December 2021, the average house price in Britain was £269,273, today, the average stands at £288,120, marking growth of 7%.

However, there were a number of major cities where, despite the significant economic headwinds, prices have seen impressive growth since the end of 2021.

Nowhere is this more true than in Sheffield. In December 2021, The Steel City had an average house price of £192,542.

Today, the average stands at £216,934, marking strong growth of 12.7%.

Bradford has seen price growth of 10.3%, resign from £158,562 to £174,930; and another Yorkshire city, Leeds, ranks third for price performance with growth of 10% since December 2021 bringing the current average house price to £231,743.

Newcastle, Leicester, Bristol, Edinburgh, Cardiff, Glasgow,, Nottingham, and Liverpool have also seen above average price growth.

But not all cities can boast such strong price growth since the end of 2021.

In fact, some of the major investment cities have particularly struggled, including London and Manchester, both of which have seen growth of just 2.3%.

Brighton has seen growth of 4.5%, while Birmingham prices have risen by 5.4%.

Jason Ferrando, CEO of easyMoney, said: “When the Bank of England started increasing interest rates at the end of 2021, it made property purchasing more expensive for the vast majority of people who require the help of a mortgage.

“This includes property investors of all shapes and sizes. And because buying became more expensive, fewer buyers entered the market and this fall in demand means prices have struggled.

“But as is always the case with the British housing market, even when the national picture shows muted growth, there are always corners and pockets where prices are rising at pace. In the past few years, the best of these pockets appear to have been Yorkshire cities.”

He continued: “The best, most astute property investors are wise to the fact that when price growth stutters in one city, it will be booming in another, so a smart investor who normally invests in Manchester will have shifted their attention to Sheffield, for example, for the past couple of years.

“If you’re looking to make good returns from property investment, it’s vital to have a good overview of the national market and all of its individual local markets, too.”

Article taken from The Intermediary written by Jessica Oconnor