Cities Index report May 2019

The latest Zoopla Cities Index report shows house price inflation running at +1.8%. The fastest growth has been recorded in the most affordable cities, Liverpool (+5%) and Belfast (4.6%).

Residential values continue to fall in London and Cambridge while the rate of growth weakens across southern England. In four of the most expensive cities, the income to buy for a first time buyer has fallen 5% in the last 2 years.

These trends are a result of evolving affordability dynamics and the impact of successive tax changes since 2015. Buying power and demand for housing has diminished, hitting high priced cities more than others.

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UK city house price growth

House price growth – % yoy current / 12m ago

Price changes

London house price growth

The annual rate of house price inflation in London equates to -0.4%

Fastest growing cities

Liverpool, Belfast and Nottingham have the fastest house price growth

Slowest growing cities

London, Cambridge and Aberdeen are the cities with the slowest growth

Gross income to buy as a first-time buyer

Graph showing gross income to buy as a first time buyer

The graph above shows the gross household income required by a first-time buyer to buy a typical city home. The annual income required to buy has increased over the last 3 years by £4,500, or 9% to £54,400.

The income to buy ranges widely across cities, from a low of £26,000 in lower value cities such as Liverpool and Glasgow, to a high of £84,000 in London. Low mortgage rates and and new mortgage regulations are capping buying power and reinforcing house price falls in the highest value markets.

City level summary