Financial Times data shows that, by March, the average London property was priced at just 2.38 times the average home in Greater Manchester. This is the narrowest multiple since 2009 and a sharp drop from the 3.6 peak recorded in 2016.
In the capital, average values fell 2.1% over the year to £542,065, marking an eighth consecutive annual decline and taking prices to their lowest level in more than four years.
By contrast, several major regional cities continued to see positive growth, with Liverpool up 2.9% year-on-year in March, Leeds rising by 2.3% and Leicester by 2.1% over the same period.
Liverpool and Manchester are two cities that have consistently seen stronger growth than London over recent years. Both cities offer significantly lower average entry prices than the capital, while maintaining competitive rental levels. This results in stronger gross yields, with projected yields as high as 9% or more possible for certain properties in the North West.
Alongside pricing and yield, projected capital growth in the North West is some of the strongest in the UK. The latest Savills Residential Market Forecast predicts a 27.6% average property price growth in the North West, while London expects a 13.6% growth during the same five year period.
Between March 2023 and March 2026, Land Registry data highlights that Liverpool property prices saw nearly the same level of growth in just three years, with a 12.8% average increase.