Hometrack’s city index records price inflation and market trends across 20 UK major cities and is the only UK index to analyse housing market trends on a city level alone rather than a wider region – although the Land Registry also provide regional city data within their wider house price index covering regions, counties and local authories.
The latest cities index by Hometrack shows that:
- City house price inflation across the UK has fallen to 5.3%, from 7.4% in July 2016
- Britain’s second city’ Birmingham has enjoyed the fastest rate of growth (8.0%) along with Manchester (7.1%) and Nottingham (6.9%). Woes for Aberdeen homeowners continue as price growth continues its negative trend for exactly 2 years, down 16% in this time.
- Although London no longer takes the lead for UK price growth, the slowdown in prices has “bottomed out” and are now up 2.8% annually.
London ranks 16th out of the 20 major UK cities in the index, with just Newcastle, Cambridge and Oxford seeing lower levels of growth. Whilst Aberdeen is the only city to have seen a year on year increase it is joined by Oxford where prices have also seen a marginal drop month on month.
The top 10 highest annual growth is a mixed bag of cities from the North, Midlands, the South and Scotland, highlighting that although the UK market has slowed as a whole after a tough year, it remains in good health with high pockets of demand and price growth the length and breadth of it.
Although overall price inflation may be down when compared to July, this is certainly a seasonal influence and not one that should cause any degree of worry for homeowners across the UK’s major cities.
Many outside the London bubble will be delighted to see the UK’s second city leading the way for price growth, followed by a strong supporting cast from across the nation. It further highlights the strength and diversity of the UK market and how it has performed in the face of an adverse political and economic environment.
That said, the end of an 18-month slowdown in London property values is a sure sign that the market is once again finding its feet. It’s likely that we will now see property price growth begin to return to previous levels over the coming months as the holiday season ends and it’s back to business for all.Russell Quirk