Zoopla Cities House Price Index Reveals 54% Growth Over Last Decade with Further Growth Expected in 2020
Property giants Zoopla have released their latest Cities House Price Index figures and have revealed that property prices across 20 of the UK’s major cities have seen an average of £90,000 being added to its value, stating that they anticipate a further 3% growth average to be seen in 2020.
Figures from the Cities House Price Index shared statistics that showed that an average house within the UK’s major cities has seen 4.4% growth over the past decade, even with the uncertainty that plagued the market due to government leadership and Brexit talks that we thought to have dampened the market.
As expected, properties in London saw the biggest gains with an average of £204,400 added to the value however it was pointed out that the biggest growth within that overall 74% growth across the decade was experienced before 2016.
While figures showed growth was wide spread across the market, there were places such as Belfast and Aberdeen that failed to showcase that same level of improvement, with both markets ending the decade at around the same level at which they started.
Property Growth Over the Past 12 Months
While property value over the decade seems to show solid figures, a closer look at the market showcases a more telling picture for those that are looking to invest within the UK property marketplace, showing that the average cost of a home in major cities saw an increase in value of 3.4% over the past year.
That figure is based on the average however, with properties in Edinburgh (5.4%), Manchester (4.7%) and Leicester (4.5%) performing stronger than average during that time.
Property Market Outlook 2020
The closing of the decade saw the property market experience turbulence due to a number of factors but with the General Election now completed and Brexit looking like it is getting completed, there has been a slight boost to the property market as house sales begin to work their way back through the system and clear the blockage caused by uncertainty.
Zoopla anticipate that although the market looks like it could be seeing more activity than it has in recent months, house price growth could be limited to single figure inflation of value, citing lower mortgage rates as a big factor.
While places like Belfast and Aberdeen have seen lower levels of growth over the past decade, it is thought that they are potentially going to see slightly higher than average levels of gains.
In terms of property growth over the next year, Zoopla have anticipated that we could see an average gain of 3%, however have also pointed towards a potential 4% gain in cities that have a market that is more affordable.