In this month’s Zoopla’s Cities House Price Index report, powered by Hometrack, seven cities are registering house price growth of less than +1% per annum — the first time we’ve seen this 6 years. Edinburgh and Liverpool lead the way recording the highest growth at +5.1% and +4.9%; prices in London are still falling annually but quarterly the growth is improving.
In this edition we cover the strength of market conditions in cities in the north and delve into how the ratio of sales to new homes supply can shed light on the disparity in market conditions across southern England and the rest of the country.
With growing differences between the north and south of England, we can see that in the south Bristol has the highest annual growth, whilst the remaining six southern cities are recording growth of around -0.3% and +0.8%. This is due to affordability constraints impacting demand, resulting in lower rates of house price inflation.
We’re also seeing continued modest improvements in London, as the market comes to the end of a 3-year repricing process. There is an improvement in the ratio of sales to new supply, resulting from a small increase in agreed sales and a reduced supply of new stock, allowing the market to recover slightly. A contributing factor of this re-adjustment is that prices for new supply are now becoming more aligned with what buyers are prepared to pay.
For the full low-down on this months’ Cities Price Index download a free copy of the full report.Download report