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.
The annual rate of price inflation in London has stabilised at 2.3%; well down on the 8% annual average growth rate since 2010.
Edinburgh, Manchester and Birmingham are once again the UK’s fastest growing cities this month.
Aberdeen, once again, remains the only UK city in the top 20 list to suffer house price falls of -1.8%.
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.