Post Office Money has revealed the locations which have seen the greatest house price growth in the last year.
The research, which analyses Office for National Statistics (ONS) data, examines the house prices and first-time buyer affordability in over 80 locations across the UK, to help aspiring buy-to-let investors find the best locations for consideration.
Properties in Nuneaton & Bedworth, Stockport and Leicester show significant potential for capital growth having seen double-digit house price growth in the last year, bucking national market trends. While house price growth has continued, in the last year it has stagnated to an increase of just 0.9% across the UK, with the average home costing £282,713.
Chrysanthy Pispinis from Post Office Money, said: “Rental income and opportunity for capital growth should be fully explored in the mid to long term to help evaluate the best locations as you begin your property search.
“The market as a whole may have slowed in the last year but many locations, especially in the Midlands and North, are continuing to see significant house price growth. These properties are potentially good mid-term investments, particularly as they sit in locations that continue to be affordable, even for first-time buyers, which can be a great indication of future growth hotspots.”
Key cities in the Midlands and the North of the UK continue to boom despite the slowdown in the Southern market. Cities continuing to see growth include Cardiff (9%), Sheffield (7%), Nottingham and Birmingham (6%).
Pispinis added: “The number of households renting in the UK has increased from 2.8 million in 2007 to 4.5 million in 2017, a rise of 1.7 million (63%)2. This shows that there is still a real need for buy-to-let properties and therefore an opportunity for those looking for a New Year investment.”