Sheffield has been listed among the top 10 cities with biggest year-on-year house price growth, while London lags behind.
According to the latest UK Cities House Price Index, from property research firm Hometrack, Sheffield is closing the gap on London with house price growth of 5.2% whereas London has slowed to a nine-year low at 0.4%.
Sheffield is bucking the trend of the rest of the UK, which has an average growth of 4.6%. And it is expected that over the next 12-24 months the gap between London and other major regional cities will narrow further.
However, house prices in regional cities would still need to rise by as much as 25% to take the average back to historic benchmarks relative to London.
Mark Ross, Director of Redbrik, said: “This latest data, indicating that regional housing markets are reporting strong growth, closing the gap with the capital city, is no surprise. With changing and more flexible working environments, and infrastructure projects like HS2, people are able and choosing to live out of London.
“Price-wise, Sheffield is still a long way behind London, but we know that in areas that we are selling in, demand is stronger than ever, and buyers have to put themselves in a position to be able to purchase, otherwise they will miss out. We are regularly seeing properties have 25-40 viewings with many selling for significantly more than the listing price.
“Due to the lack of housing stock available in Sheffield, prices will keep rising and there is still plenty of potential for further growth, especially when you consider we are still some way short of prices in other comparable cities.”