Wondering what’s happening to house prices in your local city? Our latest research offers an insight – and it's good news if you're a Londonder.
被他6体育开户Annual house price growth across the UK’s major cities increased to 2.9% in October as southern markets showed signs of recovery.
被他6体育开户Property values in London rose by 1% in the past year, the strongest pace of growth for two years and reversing the 1.1% dip recorded during the previous 12 months.
There was also evidence of firmer pricing in cities across southern England, according to our latest for October.
被他6体育开户But it was not all good news, with the rate at which house prices are rising slowing to below 5% in the most buoyant cities for the first time since November 2012.
What’s currently driving house prices?
The housing market is currently at an interesting crossroads. During the past two years, the market has been characterised by subdued or falling prices in London and southern regions, where affordability has become increasingly stretched, and rising property values in cheaper northern markets.
But there are signs the situation is now changing. House prices in London registered their strongest gains in two years, while less than a quarter of London postcodes suffered falls in October, compared with 85% a year ago.
The shift in house price momentum in the capital has been driven by a decrease in the number of new properties for sale, which has restricted supply.
At the same time, there are signs that demand is picking up, which, combined with the falling supply, is pushing prices higher.
By contrast, although growth in property values is still strongest in northern cities, there are signs that the pace of gains is beginning to slow, with no city posting annual house price inflation of above 5%.
被他6体育开户Meanwhile, the announcement of the General Election on December 12 is expected to bring forward the traditional seasonal slowdown seen in the run up to Christmas.
Where is growth currently strongest?
Leicester saw the strongest house price gains in the year to the end of October, with the average cost of a home rising by 4.7%, although this was down from the 5.6% recorded in the previous 12-month period.
被他6体育开户It was followed by Manchester at 4.6% and Liverpool at 4.1%, with Edinburgh and Belfast completing the top five, both at 4%.
被他6体育开户Overall, Edinburgh, Leicester, Manchester and Birmingham have all posted growth of more than 15% in house prices since the start of 2017, but the pace of gains in these cities is expected to moderate going into 2020.
Richard Donnell, Research and Insight Director at Zoopla, said: “While the London housing market has been in the doldrums, market conditions in regional cities have been stronger over the last two years with demand supported by employment growth and attractive housing affordability.
“The rate of growth is slowing, and all cities are registering annual growth of less than 5%.”
Where is growth currently weakest?
被他6体育开户Aberdeen was the only city in which house prices fell year-on-year in October, with the cost of property dropping by 5.9% as the market continues to suffer the fallout from the drop in oil prices.
被他6体育开户House price growth also stalled in Oxford, with no change recorded during the past 12 months.
But other cities in southern England registered growth of at least 1%, with Bristol posting a rise of 3% year-on-year, while in Cambridge property values were 2.2% higher, a turnaround from the fall of 3.2% recorded during the previous 12 months.
Top three takeaways
- Annual house price growth across the UK’s major cities increased to 2.9% in October as southern markets showed signs of recovery
- Property values in London have risen by 1% during the past year, the strongest pace of growth for two years
- Northern cities continued to record the biggest increases in house price but the pace of gains is slowing
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