The latest Hometrack index reveals that city house price inflation across the UK has dropped from 7.4% 12 months ago to 5.3%.
There’s been a faster rate of monthly price increases in previous months and growth remains robust in regional cities. Birmingham, Manchester and Nottingham are the UK’s fastest growing cities this month. Growth has been consistent for the last year in Birmingham and Manchester, as prices rise off strong demand and attractive affordability.
Meanwhile, Aberdeen remains the only UK city in the top 20 list to suffer house price falls. Average house prices in the city are now 16% lower than they were in December 2014, as falls in oil price have impacted the local economy.
There have been consistent month on month price increases averaging 0.5% across London for the last six months, picking up in the last three months with average prices now 1.4% higher.
UK city house price growth
Cities house price inflation – January
Price changes
London house price growth
London house price growth has ‘bottomed out’, with the annual growth rate rising to 2.8%.
Fastest growing cities
Birmingham (8%), Manchester (7.1%) and Nottingham (6.9%) are the UK’s fastest growing cities this month.
House price falls
Aberdeen remains the only UK city in the top 20 list to suffer house price falls (-3%).
City house price inflation – % year on year
Nineteen of the twenty top cities continue to register growth, with only Aberdeen showing house price falls. Growth in more expensive Southern cities, such as Oxford and Cambridge, is slow compared to that of cheaper, regional cities.
City level summary
City spotlight – London
London consists of multiple housing sub-markets from the prime, international ones of inner London, to the suburbs. All markets across London have registered a similar level of house price growth from 2009. Emerging markets of inner east and south east London have out-performed the rest thanks to improved transport links and value for money in the early stages of the recovery. Today prices are falling in central, high value areas, while they are still rising in the cheaper parts of London.
