The latest Hometrack index reveals that city house price inflation has increased to 6.1%, the highest rate of growth since September 2016 and above the UK average growth rate of 4.7%. House price growth remains robust in regional cities where affordability levels are attractive.

Manchester is the fastest growing city at 7.9%, followed by Birmingham (7.3%) and Leicester and Bristol (both 6.6%). The rate of growth across London continues to stabilise (3.0%).

The house price to earnings ratio in London has reached an all-time high of 14.5x. Oxford, Cambridge and Bournemouth also have double digital price to earnings ratios, whilst three cities – Glasgow, Liverpool and Newcastle – have house price ratios below the 15-year average.

 

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UK city house price growth

Cities house price inflation – October

Price changes

London house price growth

The annual rate of price house price growth across London continues to stabilise at 3.0%, supported by tightening supply and lower turnover.

Fastest growing cities

Manchester, Birmingham, Bristol and Leicester are the UK’s fastest growing cities this month.

House price falls

House prices in Aberdeen continue to fall, once again making it the only UK city in the top 20 list to suffer falls.

Price to earnings – current and long run

London, Oxford, Cambridge and Bournemouth all have double digit price to earnings ratios, whilst strong inflation in Bristol has pushed the ratio to 9.7x. These cities have affordability ratios that are 20% to 40% higher than the 15-year average. Glasgow, Liverpool and Newcastle have house price to earnings ratios below the 15-year average.