Price growth in key cities across Britain is continuing to rise with levels up by 3.5% over the last three months, latest figures revealed.
The recent price increase proves to be the steepest rise since June 2014, whilst the year-on-year increase was at 5.1%, only slightly below the 5.2% one month prior, data from Hometrack has revealed.
The index covers the country’s 20 biggest cities and has now stated an average property price of £250,200 across all of them. However, prices vary dramatically in different regions as some areas have seen a considerable slowdown in growth.
London, for example, is one of those places where property price growth has fallen from 13% to only 3% over the last twelve months alone.
Similarly, Cambridge also experienced a slowdown in growth, with rates dropping from 13% down to only 2%.
According to the Hometrack figures, larger regional cities experienced the biggest growth over the last quarter. Birmingham and Nottingham both saw an increase of 3.8%, Newcastle of 3.5% and Manchester of 3.3%.
House price growth in these more regional cities is supported by a lack of supply and an ever increasing – and growing – demand from both, investors and those looking to relocate from the South.
The report also suggests that affordability and uncertainty are affecting demand in the capital, which currently shows the lowest annual growth rate in five years. However, the report doesn’t expect London figures to fall into negative territory.
Some markets within London, although, are already registering a drop in annual house price growth, such as Islington and Hammersmith.
