The latest figures from Hometrack’s UK Cities House Price Index for January 2018 show that house price inflation is up 5% this year from 4% last year.
Prices in Edinburgh have increased 8.2% over the last year to an average property price of £218,600. It is followed by Birmingham (7.5%), Glasgow (7.2%), Manchester (7%) and Nottingham (6.5%), all of which have average property prices below £160,000.
Although prices in the UK increased by 4.4% with an average price tag of £211,400, the average of all 20 cities included in the research enjoyed a higher rise in price at 5.4% with an average property price of £251,000.
Property values in Aberdeen are down for the second year in a row, with a drop of 9.9% year on year. Both Cambridge and Oxford have also suffered a drop in property prices at -1.4% and -0.9%, respectively.
Despite London’s slight increase in prices at 1.8%, the capital has seen a massive slowdown.
Since 2009, there has been a wide range in performance across UK cities. Aberdeen has only increased by 6%, while London has enjoyed an 86% growth rate. Extending outside of the capital, prices in Cambridge have grown by 80%, Oxford (70%) and Bristol (70%).
The cities where prices grew quickly from 2009 to 2013 are beginning to see a slowdown in the last couple of years, while those that took a longer time to return to normality are now seeing a much healthier rate of growth, where property values are concerned.
In addition, it is expected that these regional cities in the Midlands and the North, such as Birmingham and Manchester, will experience a much healthier property price growth of between 20% and 30% in the next three to four years.
To read the full index, click here.
Despite the Beast from the East bringing a cold snap weather-wise, demand for city living and resulting house price growth continues to thaw as the discounts required in asking price to secure a sale closes further.
The UK remains a vast and varied landscape in terms of the property market and it is interesting to see how this also relates to the recovery time of each city since the end of the downfall in 2009.
We’ve seen a modern-day tortoise and the hare tale as those cities, like London, that saw a rapid return in property prices in the more immediate aftermath of the market crash, are now paying the price in slower market conditions.
At the same time, those larger regional cities that have required a much longer recovery period are now pulling away where price growth is concerned and have become a much more attractive proposition for buyers.Russell Quirk