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%.
House price growth in London has slowed to 2.6%, the lowest rate for over 5 years.
London, Bristol and Oxford have recorded the greatest slowdown as affordability and uncertainty impact demand.
In Edinburgh, the rate of growth has bounced back from 1.8% a year ago to 6.5% today.
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
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.