Leeds House Price Growth Well Above National Average
There is a lot of talk at the minute about how a number of recent factors are having an effect on the Yorkshire property market. It is believed that Brexit will slow price growth but that is all yet to be seen and Ian Preston’s 2017 predictions show us that we’re expecting an appreciation of around 3% to 6% across the region this year.
In 2015 to 2016, we saw 189,000 (net) new households being created. However, figures from the government showed a need to create 221,000 a year to deal with the need for new houses and the shortfall means that supply isn’t meeting demand.
The fallout from Brexit could see fewer migrants (or more) in 2017 but, on the other hand, builders may be put off larger developments due to economic uncertainty. Depending on how this works out, we may see that supply starts to level out with demand through a drop in immigration, in what is currently a sellers market.
If we look at current growth then things are looking very good in Leeds. Across the LS postcode area, house prices have risen some 14.37% in the last five years, almost triple the national average of 5.10%.
The average current value is £201,300 in this area, some distance off the national value of £297,6000 but the cost to earnings ratio shows LS to be 21.88% cheaper to live in than the average across England - thus being a more affordable place to live.
On top of this, in the last 12 months prices have risen by 6.04%, almost a percentage point more than across the rest of the country. So what’s happening throughout the region? Well, if we look at the S postcode, which incorporates Sheffield along with Barnsley, Rotherham, Chesterfield and a few others, they also boast a healthy growth of 10.53% but slower rises in the last 12 months.
Neighbouring Huddersfield (HD postcode) has seen nowhere near the kind of growth enjoyed by Leeds (or Sheffield, for that matter). Take a look at our graph for a simple region comparison, it certainly seems like cities such as Leeds are where the safest investments can be found.
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