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London falls behind five cities for house price growth

London falls behind five cities for house price growth

London is lagging behind Edinburgh, Glasgow, Southampton, Bristol and Birmingham.

Anna Jordan

Mortgages and Home

Anna Jordan
Updated on 19 December 2014

London is lagging behind five major UK cities in terms of house price growth, according to the latest Hometrack House Price Index.

While prices in the capital have risen by an average of 0.5% in the past quarter, price growth was faster in Edinburgh, Glasgow, Southampton, Bristol and Birmingham.

Peaks and troughs

Scotland’s two biggest cities have seen above average growth owing to a post-referendum increase in demand, with Edinburgh at 1.8% and Glasgow at 0.9%.

City

Average growth per month in last three months

Edinburgh

1.8%

Glasgow

0.9%

Southampton

0.8%

Bristol

0.7%

Birmingham

0.6%

Meanwhile, the most significant recent reversals have been seen in Aberdeen (-0.4%), Cambridge (-0.2%) and Liverpool (-0.1%).   

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The bigger picture

House prices have risen above their 2007 peak in eight cities but, despite a recent slowdown, London (30.5%), Cambridge (28.7%) and Oxford (21.9%) are still leading the way:

City

Average price

Relative to 2007 peak

Relative to recent trough

% year on year

London

£403,200

30.5%

55.1%

16.4%

Aberdeen

£195,200

13.6%

30.3%

14.3%

Bristol

£218,600

9%

34.7%

13.8%

Cambridge

£338,500

28.7%

55.1%

13.4%

Oxford

£340,700

21.9%

45.4%

10.2%

Southampton

£192,300

5.3%

25.9%

10.1%

Edinburgh

£196,900

-4.8%

15.3%

9.5%

UK

£185,900

1.1%

19.2%

8.9%

Portsmouth

£195,200

4.8%

23.9%

8.8%

Belfast

£115,500

-50%

12%

8.4%

This works out at an average annual increase in London property values of £57,000, which is nearly four times the national average of £15,200 and nearly double the UK’s average income. At the other end of the scale. Liverpool showed the lowest increase in values with just £3,000 added to house prices in the last year.

Hometrack is predicting that UK house prices will grow by 2% over 2015.

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