Regional cities of Nottingham, Leicester and Liverpool had strongest annual price growth for the UK in July
House prices in some cities in the UK have still not recovered from the financial crisis 10 years ago, according to the latest Cities House Price Index by Hometrack.
Prices in 3 of the 20 cities ranked in the index remain below their levels prior to the crash - Belfast (-28%), Aberdeen (-3%) and Liverpool (-1%) - whilst in Glasgow and Newcastle house prices are only slightly above their pre-crisis levels by 1% and 3% respectively.
Conversely, prices in four cities are 50% higher than they were before the financial crisis; Cambridge (70%), London (65%), Oxford (55%) and Bristol (53%).
According to Hometrack, these cities have had the best performance due to their stronger economies, broader housing demand and more acute supply shortages.
However, in the 12 months to July they had a lower rate of house price growth compared to the UK average of 3.7%; Cambridge (1.2%), London (-0.1%), Oxford (0.5%) and Bristol (3.1%).
The top five cities for year-on-year growth were Nottingham (7.5%), Leicester (6.6%), Liverpool (6.3%), Manchester (6.1%), and Birmingham (5.7%).
“The fact house prices in some of our biggest cities are still recovering from the financial crisis shows how big an impact it had on the UK's regional housing markets,” said Hometrack’s Insight Director, Richard Donnell.
“While 2008 was the year when house prices fell at their fastest rate, they continued to fall for a further three to four years in the weaker performing markets as the impact of the recession and restricted credit availability hit the value of people's homes.
“These past ten years would have been difficult for many homeowners living in these cities, with low prices, weak growth making it difficult to move homes for work or to up-size to accommodate growing families.”
Property transactions on a non-seasonally adjusted basis declined in July by 6.5%, according to the latest data from HMRC.