House price growth over 2017 was one of significant divergence between regions. As such, returns generated by investment properties varied significantly depending on their location. The star performers over the past twelve months were properties in Scotland’s two biggest cities.
Research on sales prices compiled by property data company Hometrack shows prices of residential property in Glasgow saw 7.9% growth over the twelve months between November 2016 and November 2017. Capital Edinburgh was up 7.6% over the same period. The market for both cities is also expected to remain healthy into 2018, with sales over Scotland predicted to grow.
The average price growth in house prices for the 20 largest cities across the UK was 6.3%. Despite the fact that reports have indicated a slowing pace of growth this year, that is actually up on 4.9% over the previous 12 months. Growth this year has been driven by regional cities outside of London and the Southeast, which have provided a drag on nationwide figures.
The major trend over the past 12 months or so, and one that has accelerated over the past 6 months in particular, has been a marked shift in property market strength from south to north. As well as Scotland, property investments in the Midlands also had a very good year. But there have been some exceptions to that general rules. Aberdeen in Scotland’s Northeast has had the worst performing property prices this year, dropping around 4%.
London and the Southeast had growth of only 2.7% this year with more exclusive regions of central London seeing significant drops. The previous twelve months had seen prices rise by 6.3%. Over 2017 the capital and surrounding regions are forecast to see modest real price drops. Prices are expected to rise by an average of 1%, with inflation set to remain at 3%+. Across the whole country, Hometrack predicts 5% price growth for 2018.
