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.
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.
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.
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.