The latest Hometrack index reveals that city house prices have grown by 4.9% over the last year, which is higher than the 4.2% average over the last two years but lower than the 6.9% average of the last five.
Manchester is the fastest growing city this month (7.7%), with Edinburgh, Birmingham, Leicester, Nottingham, Cardiff and Liverpool all growing by over 6% per annum.
Cities across the south coast of England – Portsmouth, Southampton and (to a lesser degree) Bournemouth – are also registering growth below the 5-year average as affordability pressures start to build. However, large regional cities in the midlands, north and Scotland continue to register annual growth above the 5-year average.
The pace of price reductions in London has moderated over the last quarter, with house prices 0.8% higher than a year ago.
Manchester is the fastest growing city in the UK this month, followed by Edinburgh, Liverpool and Cardiff.
House prices in Aberdeen are falling by 7.2% per annum, and have fallen by 19% since the end of 2014.
Bristol is the top performer of city house prices over the last 1 and 5 years, registering the highest annual growth over the last 5 years (8.9% CAGR). But the growth rate is now slowing, with average prices up by 4.9% in the last year.