House prices in the North West expected to rise in 2018

Houses prices in the North West are expected to grow by three per cent next year as the region presses throughBrexit uncertainty and household income squeeze, according to new research.

Global business advisory firm KPMG’s forecasts, which are part of KPMG Economics’ regional house price study, have been calculated based on regional house markets and consider short-term and long-term economic factors.

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KPMG expects a 2.8 per cent rise in prices in the North West for 2017, down from 3.7 per cent in 2016. Growth will then accelerate back to three per cent in 2018 before rising steadily in the coming years.

It has forecast prices to reach 3.3 per cent in 2019, 3.2 per cent in 2020, 3.8 per cent in 2021 and 4.2 per cent in 2022.

According to industry data, the North West region is one of the most affordable in the country with price to income ratio of 3.8x for first time buyers.

Adam Posner, head of property at KPMG in the North, said: “House prices in the North West are holding up well and look set to remain strong in the coming years. Of course, there are many differences between property markets across towns and cities within the North West and types of housing stock, but prices are generally increasing.

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“It is also encouraging that the region remains one of the most affordable areas in the country.

“Despite the ongoing uncertainty over Brexit and the bite on household income, the projections also reflect positive trends in the region’s employment, population and economic activity, which are benefiting from Northern Powerhouse-related initiatives to boost growth. Particularly in our major cities where demand is booming for quality accommodation.

“As job creation continues at pace, we expect a sustained upward pressure on prices.”