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

Cities in the South East have recorded the greatest slowdown over the year, with London down from 13% to 3.3% (the lowest for 5 years), and Cambridge 13% to 2%.

However, 11 cities have recorded higher growth, with Birmingham (7.7%), Manchester (6.8%), Leicester (6.8%) and Nottingham (6.8%) registering the highest. This is up from 6.9%, 6.4%, 6.7% and 5.7% respectively the same time last year.


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UK city house price growth

Cities house price inflation – May

Price changes


London house price growth

Growth continues to slow in the capital, reaching the lowest level in 5 years.

Fastest growing cities

Sales fall as affordability pressures and investor tax changes constrain demand.

House price falls

Birmingham and Nottingham both recorded the highest price increases over the last quarter.

House price growth since 2009


Price increases since 2009 range between +85% in London to just +12% in Glasgow. Regional cities are unlikely to post London levels of growth, but we expect the gap in growth from 2009 to close.

City level summary

City spotlight – Birmingham


Birmingham’s large housing market is diverse with average prices ranging from over £233,800 in Solihull to £116,000 in Wolverhampton. House prices across Birmingham city, as measured by the Hometrack house price index, are rising at 7.7% per annum. This ranges from 7.4% in Dudley to 3.3% in Wolverhampton. We expect house prices across the city to keep rising above the national average as house prices continue to recover, supported by low mortgage rates.

House price growth from 2009

Annual rate of growth