The latest Hometrack index reveals that city house prices have grown by 4.6% over the last year.

Edinburgh and Manchester are registering the highest rates of growth at 7.1% and 7.0% respectively. However house prices are falling in real terms across five cities this month – Belfast, Oxford, London, Cambridge and Aberdeen.

Over the next 12 – 24 months, we expect to see the price gap between London and other cities to narrow further, mirroring the trend over 2002 – 2005.

 

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UK city house price growth

UK city house price inflation at 4.6% year on year

Cities growth rate, current / 12m ago

UK cities growth rate - current and 12 months ago graph

Price changes

 

London house price growth

London house price growth is at 0.4%

House price growth across the London City index is now 0.4% over the last 12 months.

Fastest growing cities

Edinburgh is the fastest growing city this month

Edinburgh is the fastest growing city this month, followed by Manchester and Bournemouth.

House price falls

House prices in Aberdeen are falling by -5.7%

House prices in Aberdeen are falling by -5.7% per annum, and in real terms across Cambridge and London.

House prices relative to London (selected cities)

 

Graph showing house prices in selected cities compared to London

 

With house prices in regional cities rising faster than London, the gap between London and the rest is narrowing. This graph shows the ‘price relative’ between London and selected other cities – showing the ratio of the city to London as the base at 100%. It shows how, over the housing cycle, the price relative between London and other cities expands and contracts.

City level summary

 

Map showing the UK city level summary for May 2018