House prices in Leeds, Manchester and Birmingham could feasibly rise by between 20-25% in the next three years, Hometrack has predicted in its UK Cities House Prices.
Overall UK city house price inflation increased to 6.1%, which chief executive of estate agent eMoov described as “promising signs for the UK market”.
Russell Quirk, property expert and founder of eMoov, said: “Overall, yet more promising signs for the UK market with city house price growth remaining buoyant in the face of tough market conditions.”
Quirk thought the scrapping of stamp duty for first-time buyers in the Autumn Budget could stimulate more growth.
He added: “The recent abolition of first-time buyer stamp duty may assist this level of growth as a rejuvenated level of buyer demand further outstripping the supply of housing will see prices continue to climb in the long-term.
“For many trying to get a foot on the ladder, the stamp duty changes will be of little comfort given the continued increase in prices, as the obstacle of affordability and the gulf between this and the earnings on offer is already rather sizable and preventing them from taking that first step.
“London continues to be a shining beacon of unaffordability where the earnings to property price ratio is concerned, and it is unlikely that any reprieve of first-time buyer stamp duty will do anything to change that.”