January’s increase in house prices comes despite a slowdown in growth across UK cities
The average property price in cities across the UK has risen year-on-year – despite the growing impact of affordability pressures and political uncertainty on the market, according to a new report.
House price growth rose by 2.9% on average across the UK’s 20 largest cities, according to data published by online property portal Zoopla.
The UK’s top location for property value growth in January was Leicester, said Zoopla, as house prices in the East Midlands city rose by 6% annually.
Belfast and Manchester round out the top three city locations, with average growth of 5.8% and 5.4% respectively.
According to the report, there has been a slowdown in the rate of property value growth in 13 of the UK’s 20 largest cities, with the rate of growth halving in Edinburgh, Bournemouth, and Portsmouth over the last 12 months.
The largest declines in property values were found in Aberdeen, where prices fell by 2.4%, and in Inner London, where the continued influence of rising prices and Brexit uncertainty have impacted the market, the average rate of growth fell by 0.2%.
However, analysis of the time taken to sell a property and the level of discount made to the asking price has revealed that these markets remain robust, claimed Zoopla.
When these factors, alongside the rate of growth are taken into consideration, Nottingham is the UK’s leading city for property sales, said the report – as vendors are able to sell their properties reasonably quickly, with minimal discounts and generate favourable property value growth in the process.
“Underlying market conditions remain strong in regional cities with the discounts from asking prices continuing to narrow as low mortgage rates and rising employment continue to stimulate demand for housing,” said Richard Donnell, research and insight director at Zoopla.
Last month, Rightmove found that strong wage growth was also stimulating the market, as asking prices across the UK rose by 0.7% in January.