Manchester housing market surges ahead of London

Manchester has seen stronger house price growth, following Andy Burnham becoming Prime Minister.

Data by Benham and Reeves, using the government’s UK House Price Index, compares London Mayor Sadiq Khan and former Manchester Mayor Andy Burnham’s average house price movements, residential sales volumes and new housing completions.

The news comes as the Office for National Statistics (ONS) reveals that average private rents across the UK rose by 3.3% to £1,388 a month in the year to June.

Momentum achieved across Greater Manchester

According to the data, since Mr Khan became Mayor in May 2016, the average house price across Greater London has increased from £500,467 to £544,814, representing growth of 8.9%.

Over a comparable period, Andy Burnham oversaw considerably stronger house price growth in Greater Manchester. Since taking office in May 2017, average values have climbed from £145,058 to £238,730, an increase of 66.6%.

Marc von Grundherr, director of Benham and Reeves, said: “London remains the UK’s most important housing market and, despite the pandemic, rising interest rates and wider economic uncertainty, it has continued to provide long-term stability for homeowners and investors.

“However, it is impossible to ignore the momentum achieved across Greater Manchester under Andy Burnham. His record suggests he understands that housing delivery, regeneration and economic growth must work together, and applying that approach nationally could provide a welcome boost to development and investment.”

Stamp duty must be addressed

Mr von Grundherr added: “Stamp duty must also be addressed. It is an outdated and fundamentally unfair tax that penalises people simply for moving home, while placing the greatest financial burden on buyers in higher-value markets such as London.

“A meaningful reduction would remove one of the biggest barriers facing buyers, release pent-up demand and stimulate activity throughout the entire housing chain. Few measures could provide such an immediate and significant boost to the UK property market.”

The data also reveals that Greater London recorded an average of 0.8 residential sales per month for every 1,000 residents. Greater Manchester recorded a higher rate of 1.1 sales per 1,000 residents during Andy Burnham’s tenure, indicating a more active transaction market relative to population size.

Since Andy Burnham took office, Greater Manchester has averaged an estimated 2.4 new dwelling completions per 1,000 residents each year, narrowly ahead of Greater London’s average of 2.2 over the same broad period.