Glasgow, Liverpool, Manchester and Nottingham see biggest house price rises as property in the South takes a breather
- Glasgow sees biggest quarterly house price growth at 5.2%
- Cambridge is the only city where prices fell in the three months to July
- Prices across Britain’s main 20 cities rose by 9.5 per cent in July
A slowdown in house price growth in the South means Northern cities continue to see some of the biggest increases in property values across the country, new figures reveal.
Glasgow, Liverpool, Manchester and Nottingham - where prices have been subdued and so offered good investment opportunities for landlords - have seen some of the biggest price rises in the past three months and are set to keep rising.
On the contrary, house prices dropped by 1 per cent in Cambridge in the quarter and growth slowed in London and Bristol – all of them cities that have in the past recorded some of the biggest rises.
Going up: Glasgow saw the biggest quarterly house price growth at 5.2% in July
On average, prices across Britain’s main 20 cities rose by 9.5 per cent to £240,000 in July compared to last year, down from 10.2 per cent in June, according to the latest index by Hometrack.
House prices in Leeds, Manchester, Birmingham, Liverpool and Nottingham continued to rise by between 7 per cent and 8 per cent over the past twelve months.
Richard Donnell, Insight Director at Hometrack said that Northern regional cities will continue to register stable growth rates as households’ benefit from record low mortgages rates and affordability remains attractive.
The average price of a home in Glasgow rose by 5.2 per cent to £115,200 in the quarter – the highest price rise across the country.
Liverpool recorded the third biggest growth in the quarter, with prices up 4.4 per cent, second only to Oxford, where the average property price rose by 4.7 per cent.
Manchester and Nottingham saw house price inflation of 3.4 per cent, Hometrack said.
Slower South: Cambridge was the only city to see prices fall in the past three months
Cambridge was the only city to see prices fall in the past three months, although the average home was still 7 per cent more expensive than July last year at a whopping £404,500.
Prices in London, which has also seen double-digit growth in recent years, rose by 2.1 per cent, the lowest quarterly rate since February 2015. However homes in the capital are still the most expensive across the country, with the average home valued at £476,600.
Mr Donnell said price inflation in the capital is likely to continue to ease over the rest of the city.
‘We continue to believe that turnover will register the brunt of the slowdown in London. In the face of lower sales volumes agents will look to re-price stock in line with what buyers are prepared, and can afford to pay,' he said.
'Past experience shows that this process can run for as long as 6 months and relies, in part, in how quickly sellers are willing to adjust to what buyers are prepared to pay,’ Mr Donnell added.
Bristol, which is the fastest growing city over the last 12 months, saw growth over the last three months slow to 2.6 per cent from a recent high of 5 per cent in May 2016. The average home there is valued at £254,500.
|City||Average price||% year-on-year change||% quarterly change|
|20 city index||£240,000||9.5%||3.2%|