House price growth has slowed down a lot in England’s South

House price growth has slowed down a lot in England’s South

Whilst the annual rate of house price growth across the UK’s key cities has slowed, eleven of them still have prices rising faster than one year ago.

Across the country’s 20 key cities, prices have increased by 5.3% over the 12 months to April 2017, which represents a drop from the 8.7% recorded in April 2016, latest figures from Hometrack revealed.

Flat prices have seen the biggest increase over the last 7 years

Currently showing the biggest annual growth is Manchester at 8.4%, followed by Leicester and Birmingham, both at 7.7%.

The capital, however, is a completely different story. The Hometrack index showed an annual growth rate for London of 3.5%, which is a considerable drop from the 13% recorded one year ago (April 2016).

Quarterly house price growth averaged at 3.2% for the three months to April 2017 with only Manchester, Birmingham, and Edinburgh recording a higher rate at 4%, 3.8% and 3.7% respectively.

The Hometrack report put the trend for a constant growth of figures in the North down to the weaker levels of demand in southern cities like Oxford, Bristol and London, paired with low affordability and tax changes.

Hotel of Mum and Dad: Rising house prices make Generation Rent stay at home for longer

The report stated:

“Looking ahead we expect current trends to continue with house price growth losing momentum in cities across southern England where housing unaffordability is at a record high and has priced large numbers of households out of the market. Weaker investor demand supports this trend, taking demand out of the market and adding to supply as investors look to rationalise and de-leverage portfolios in the wake of tax changes.”

For the rest of 2017, the report predicts a slowdown in house price growth in London down to 2% or 3%. And points out “the underlying level of consumer price inflation increasing this means London is set to record a real terms drop in prices over 2017, the first time this has happened since 2011.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

aerial-view-uk-houses

STAY AHEAD OF THE MARKET

Sign-up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
UK holiday let

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT