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Banner year for booming Bristol

Bristol soaring house prices have scaled impressive new heights in 2007...

For even the most seasoned homebuyer or investor, 2007 has been a rollercoaster ride – with tightening credit, stable then lower interest rates and HIPs finally being introduced for all homes in December. While rising house prices are good for homeowners looking for long-term appreciation, falling prices could be good news for first time buyers looking forward to 2008.

However, despite much speculation and reporting of a slow down in house price growth over recent months, prices in most cases simply show signs of leveling out following the fast paced rises of a year ago, while some cities continue to perform well.

Out of all the major cities, Bristol comes out on top with the average price of a home up 9.2% on 2006, remaining consistent with the previous year's increase. Here, terraced homes dominated the housing mix, making up 43% of sales in 2007. Apartment sales were down 33% on 2006.

However, in central Birmingham, where apartments made up 98% of all property sales in 2007, average prices fell by 5.5%, amid reports of investment-oriented developments being sold at cut-down prices. Liverpool saw prices increase by just 2.6% compared to a 9.5% increase between 2005 and 2006, making it one of the most affordable cities outside of London with an average price of just £134,766.

Large scale regeneration

David Bexon, Managing Director of email4property, comments: “Since the turn of the century, many of the major towns and cities throughout the country have experienced large-scale regeneration in a bid to shed old images and rebrand in keeping with the Capital. However, in some cases this has led to available housing disproportionate to the requirements of the local demographic.

“While seasoned investors will end the year relatively unscathed, new investors may find mortgages in short supply and larger deposits required. If uncertainty brings greater research or more careful borrowing, before buying a property, this can only benefit the housing market over the next few years.”

Table 1 – average house prices between 2005-2007 

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City/city-centre	Average price 2005	Average price 2006	Average price 2007
Birmingham	162,753	186,522	172,350
Bristol	173,504	186,944	204,374
Cardiff	168,595	176,270	183,473
Leeds	137,977	148,706	153,930
Liverpool	119,898	131,313	134,766
Manchester	165,384	173,544	184,494
Sheffield	136,470	148,975	153,930

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