The latest Hometrack index reveals that city house price inflation across the UK has dropped from 6% 12 months ago to 4.9%. The quarterly rate of growth is at the highest level for 14 months, supported by a nationwide increase in housing sales over the last quarter compared to the previous 12 months.
Edinburgh is the fastest growing city (6.7%), overtaking Manchester (6.5%) and Birmingham (5.9%). We expect house prices to continue to rise in regional cities where values are still growing off a low base and affordability remains attractive.
There are five cities where the current level of house price growth is below the rate of consumer price inflation – Aberdeen, Cambridge, Oxford, London and Cardiff.
UK city house price growth
City house price inflation – September
Price changes
London house price growth
The annual rate of price inflation in London has stabilised at 2.3%; well down on the 8% annual average growth rate since 2010.
Fastest growing cities
Edinburgh, Manchester and Birmingham are once again the UK’s fastest growing cities this month.
House price falls
Aberdeen, once again, remains the only UK city in the top 20 list to suffer house price falls of -1.8%.
House price growth
Across the 20 city index, annual growth ranges from -1.8% in Aberdeen to +6.7% in Edinburgh. This is the smallest variation in growth since July 2015 and is a result of a slowdown in price inflation across all cities in southern England.
City level summary
