The average home in Birmingham has jumped £10,000 in value in the past year, new data shows.
Property prices in the city have outperformed any other West Midlands region to rise 7.9 per cent in the past year, according to experts who called price increases “eye-watering”.
The average price tag on a property coming to market in the city was £136,429, according to Rightmove – despite fears a change in regulation would hit property prices.
The rise is good news for homeowners – who see their asset rise by more than £1 every hour – but less so for first-time buyers trying to get on the property ladder.
The price uplift comes despite a three percentage point stamp duty hike for buy-to-let investors, imposed on April 1, which it was thought would take some heat out of the market.
Miles Shipside, Rightmove director, said that a rush of buy-to-let investors snapping up properties before the April 1 stamp duty deadline had resulted in “a famine of suitable property and higher prices”.
He continued: “Estate agents have perhaps been focused on getting investor sales through to completion before the tax hike, and some may have been surprised by the continuing momentum and scarcity of stock to meet ongoing demand.
“The net effect is eye-watering increases in asking prices in some towns, and is further stretching first-time buyers’ affordability even though they are competing against fewer buy-to-let investors in the market.”
While properties in Birmingham are rising faster than anywhere else in the West Midlands, the average price in Hereford actually decreased 1.7 per cent to £158,250.
Cities are dominating the price rise charts with Manchester the best-performing in the North West, rising by 8.2 per cent to an average of £124,888 in the past year. Elsewhere, there was a 13 per cent rise in Bristol and 3.4 per cent increase in Newcastle.
Croydon saw the largest overall increase, at 18.6 per cent, while in Llandudno, in North Wales, the average asking price for a first-time buyer home has fallen by 7.5 per cent over the last year, to £145,703.
Last Updated: 2016-05-16T10:06:44+00:00