Manchester’s house prices are the best performing in the country jumping a whopping 21% in 2013, a banking study has revealed.
Nationwide discovered that Manchester beat London to the top spot even though the capital boasts the most expensive houses in the UK with typical homes priced at £345,186.
House prices soared by 8.4% nationally in 2013 with even the worst performing area (Carlisle) enjoying a 1% increase.
Robert Gardner, Nationwide’s chief economist, said that the reason for the growth was due to demand for housing and low interest rates.
He explained: “Part of the reason for the acceleration in house price growth is that the supply side of the market has not kept pace with the upturn in demand, even though buyer numbers remain subdued by historic standards.
“Current ultra-low interest rates are helping to keep home loans relatively affordable, with the typical mortgage payment for a first-time buyer equating to around 29% of their take-home pay.
“However, the risk is that if demand continues to run ahead of supply in the quarters ahead, affordability may become stretched.”
Picture courtesy of Images of Money via Flickr, with thanks.
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