Sales Market Update
POSTED ON: 27/11/2014
BY: APH Mortgages
The largest cities in the UK have all seen house prices grow by a minimum of 5 per cent year-on-year, according to Hometrack’s latest UK Cities House Price Index.
London, Bristol and Cambridge have the highest property price growth with each one increasing by 17.3, 13.2 and 12.2 per cent, respectively.
On the other end of the scale, though still growing, were Glasgow and Liverpool, each with 5.5 per cent growth but both have been showing increasing momentum.
Despite the growth across the UK, house prices have slowed over the last three months, increasing by 0.6 per cent per month as opposed to 1.1 per cent in the three months to May.
Richard Donnell, research director at Hometrack, said: "Momentum in house price increases is starting to slow with less pent-up demand for housing than two years ago.
"Whilst mortgage rates remain low, new mortgage affordability tests and loan to income caps are impacting on the ability of marginal buyers to access the market, especially in the higher value markets such as London.
"We expect the rate of house price growth to slow further in the run up to the year end and there are still bright spots of activity amid reports of a wider national slowdown.
"For the first time since the financial crisis, an improved economic outlook has seen house prices in cities outside the south of England rising off a low base.
"By the end of the year, we could well see monthly house price growth in London slipping below that of some of major cities outside the south east."