The latest Hometrack index reveals that city house price inflation across the UK has dropped from 8.8% 12 months ago to 5.1%.

City house price inflation is expected to be 6 – 7% over 2017, higher than the 4% projection made in December 2016. This is due to robust house price growth in large regional cities, such as Birmingham, Edinburgh and Manchester, up 7.8%, 6.5% and 6.4% year on year in June 2017 respectively.

House price growth in four cities is failing to keep pace with the rate of consumer price inflation which is 2.6%; Cambridge (1.9%), Oxford (2.1%), Newcastle (2.4%) and Aberdeen (-2.7%). House price growth across London City has fallen to a 5 year low of 2.6%.

 

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UK city house price growth

UK 20 city index summary

Price changes

London house price growth

House price growth in London has slowed to 2.6%, the lowest rate for over 5 years.

Bottom Southern cities

London, Bristol and Oxford have recorded the greatest slowdown as affordability and uncertainty impact demand.

Growth higher in 7 cities

In Edinburgh, the rate of growth has bounced back from 1.8% a year ago to 6.5% today.

16 cities have average prices above 2007 peak

 

Sustained house price growth in large regional cities has pushed house prices ahead of their 2007 peak in sixteen cities. At current growth rates it will be another 2 years before Newcastle, Glasgow and Liverpool exceed their 2007 levels

City level summary

 

City spotlight – Manchester

Manchester’s housing market has average prices ranging from over £249,000 in Trafford to £115,987 in Oldham. House prices across Manchester city are rising at 6.4% per annum.

Salford is up 6.9%, compared to an increase of 4% in Bury and Oldham. And Stockport has seen price gains of £1,103 per month in the last three months, compared to an increase of just £356 per month in Salford over the same period.

Current yoy growth compared to 12 months ago

Average growth in the last 3 months