Faulty Towers? City centre housing markets in the UK

Article

This report provides a detailed understanding of the demand for city centre living in Britain.

The national housing market is at a critical juncture. For several years, commentators have been debating what will happen when house prices stop increasing. Now we are about to find out. Are price rises unsustainable - part of a housing bubble that is set to burst, sending the market spiralling downwards? Or has the rapid growth in house prices been built on firm foundations, providing a much softer landing?

This has important implications for city centres. If the pessimists are right, prices are going to fall and the downturn is going to hit city centre markets particularly hard. If the optimists have it, no significant adjustment is necessary to bring prices into line with their long term values. City centre markets will remain a good investment over the next few years.

The evidence suggests that the national housing market is overvalued, but not to the degree some suggest. Over the past ten years, the property market has helped make city centres happening places. Over the next five years, this will not be the case. In the long-term, city centre housing markets will prosper

again. But they will always be volatile.

This paper draws extensively on the quantitative and qualitative research undertaken for City People, which draws on the experiences of Manchester, Liverpool and Dundee. It provides a detailed understanding of the demand for city centre living in Britain.

Centre for Cities has re-launched as an independent think tank. You can visit them online at http://www.centreforcities.org.

Related items

  1. Scottish parliament building at Holyrood and Calton Hill, Edinburgh

    Great expectations: Rejuvenating the national debate in Scotland

    Fresh IPPR Scotland polling shows that politicians must raise their game if next year’s election is a to be serious debate about the challenges facing Scotland and potential solutions. 
  2. A Black man in a bright orange high vis jacket and hard hat stands in the middle of a road holding a sign that says 'STOP - WORKS'

    Unfinished business: Redressing inequality in British policy and Black lives

    As conversations about race and equality continue to evolve, Black History Month remains a powerful invitation to pause, reflect, and recommit to progress.
  3. A group of children sit around a table at primary school. A little boy smiles into the camera

    Breaking the cycle: A blueprint for special educational needs and disability (SEND) reform

    The education system is not working well enough for children with special educational needs and disabilities (SEND), their families, or the professionals delivering support.