Vendors are making a sound investment by buying in Bristol, bucking all the national trends
New data released from Hometrack has revealed that house prices in Bristol have risen faster than any other major British city in the last five years.
The report monitored the average house price in 20 cities, including Bristol, London, Manchester, Oxford and Cambridge.
The report found that, in 2018, growth in house prices is 2% lower than the preceding four-year average. The average house price in the cities surveyed still increased by 4.9% on 2017’s figure, but this was a lower incremental increase than in every year since 2013. From 2013 to 2017, house price values went up a staggering 6.9% annually.
Despite that small downturn, Bristol is still well above the average. House prices in the capital of the South West have, on average, increased 8.9% every year since 2013, even pipping London to the post, which comparatively saw prices go up 8.6%. It means that, in Bristol, the overall average house price reached £278,700. This puts it fifth in the list of most expensive cities to buy, beneath London, Cambridge, Oxford and Bournemouth.
Given the change in climate in the housing market, homeowners in the south of England have started to accept larger discounts in the past 12 months in order to sell their homes – a substantial 4.7% of the marketed value, in fact. But once again, Bristol’s housing market appeared more resilient than most. Bristol has frequently been named the best UK city to live in, and clearly buyers agree. Vendors in Oxford, London and Cambridge had to discount the most, while vendors in Bristol, Southampton and Portsmouth discounted the least.
The national picture is, therefore, slightly confusing. Prices are up but vendors are not necessarily achieving those prices. It means the housing market could be a better place to strike a deal than ever, but it is unclear if discounts are having a positive effect on the number of sales.
Manchester saw a surge in average prices in the last year. The average home in Manchester is now £161,000, up an impressive 7.7% on last year. In comparison, the cost of property in London only inched up 0.8% in the same timeframe, but buying a house in the capital is still more than three times that in Manchester, and last year the average property in London would set you back £488,000.
Due to the decline in oil prices from 2014, Aberdeen presented a more depressing picture, with homes selling for an average of 9.6% below asking prices. But, more positively, other cities in the North and Scotland recorded above average house price growth.
Overall, Bristol retains its position as the best city outside of London to invest in property. Prices are on an upward trend and vendors can still negotiate a competitive price – something that cannot be said for other big cities in the south of England.