In this month’s Zoopla’s Cities House Price Index report, powered by Hometrack Edinburgh and Liverpool hold strong in the leading position with a well above average price growth of +5.8%. Birmingham’s weakening market conditions become all the more apparent as demand fails to keep pace with the rising supply.
We also take a closer look at the house price to earnings ratio to get a gauge of the current state of housing affordability. Download the full report to find out if you operate in one of the twelve cities that are showing promising signs of improvement.
A dozen cities in the UK are registering a rate of house price inflation that is lower than the growth in earnings (3.7% nationally). This is great news for for the highest value markets; cities showing improving affordability span across the UK, including Newcastle (4.5), Nottingham (5.2) and Manchester (5.9). For the full list of cities be sure to download the full report.
Unsurprisingly the Southern cities tell a less positive story when it comes to affordability. The current ratio of price to earnings in London is 13.1, a modest improvement on its high of 14.1x just two years ago.
In summary, housing affordability is looking positive in many cities across the UK. Should mortgage rates remain low, and the economy continue to grow, our market is showing signs of potential for further price growth within the next 3 years.Download report