UK's top 5 cities for property price growth in 2020

Over recent years, the regional cities have been the highest performers for property price growth, comfortably exceeding the national averages. Will it be the same this year and, if so, which will be the ones to watch?

The end of 2019 and the start of 2020 have seen an upturn in the property market, both in terms of prices and the volume of transactions. According to Zoopla, the cities with the biggest uptick in interest were in the Midlands and the North, with Leicester, Sheffield and Leeds showing rises in buyer interest as much as 20% above average.

Using the figures from the Zoopla/Hometrack Cities Index and factoring in metrics such as affordability, best value homes, discounts to asking price and time taken to sell, Zoopla have ranked the cities with the highest potential for house price growth this year.

Whe reading the figures below, it is worth noting that a key measure of affordability is the house price to incomes ratio. The national average is around 8 times, in London and cities such as Oxford and Cambridge is is 10 to 12 times.

5. Birmingham

House price growth in Birmingham in 2019 matched the national city average of 3.9 per cent and at £167,500 are 5.69 times local average incomes, leaving headroom  for price growth.

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4. Manchester

Similarly, values in Manchester are 5.86 times local earnings, but here the pace of growth has already picked up in full force. Prices last year rose to an average of £173,700, a 4.5 per cent jump on 2018.

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3. Glasgow

Glasgow has one of the best house price to earnings ratios in the country. Homes here cost just 4.4 times incomes, meaning affordability is not going to kick in as a constraint any time soon. Prices are now £124,600, the cheapest city in the top five. 

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2. Edinburgh

Meanwhile, Edinburgh saw the steepest rate of growth in the country in 2019, bringing its average price up to £242,200. Homes cost 6.53 times earnings and there is huge demand. The average sale in Edinburgh takes just 4.7 weeks.

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1. Nottingham

Prices last year grew by 5.2 per cent here to hit £159,600, which is 5.4 times average earnings. Student retention rates are high and  employment prospects are good, earning it Zoopla's highest rating for 2020.