The latest Hometrack UK Cities House Price Index has revealed that house prices on a city level are recording their highest quarterly growth for the last 11 years. In the three months to July 2015 house prices grew by 4.5%.
The famous old university cities of Oxford and Cambridge are leading the way when it comes to year-on-year price growth (9.8% and 10.9% respectively), closely followed by London (with 9.4% growth). However, a number of cities are catching up. Bristol (8.6% growth), Edinburgh (8% growth) and Southampton (7.1% growth) are all snapping at the heels of the top three. It also goes to show how widespread growth in the UK has been, from Scotland to the West of England and down to the South Coast.
A 32% rise in the number of transactions since April 2015 has helped to drive the upward momentum in house prices. In this same time mortgage lending for house purchases has increased by 26%.
With the exception of Aberdeen, all cities in the 20 city index – which also included major UK metropolises such as Glasgow, Leicester, Liverpool, Leeds, Belfast, Birmingham, Manchester and Newcastle – are reporting house growth ahead of annual growth in average earnings.
While this is good news, there is still room for improvement in certain cities. Nine out of the twenty cities in the index still have average house prices that are lower than 2007 levels. Having said that, this gap is narrowing at a rapid rate.
“There remains further upside for city level house prices over the remainder of 2015,” Richard Donnell, Director of Research at Hometrack, said.
“Low mortgage rates, economic growth and rising earnings will continue to stimulate demand and put an upward pressure on prices. As an international city, London is out on its own setting new highs for prices and affordability. How long this can be sustained is down to the prospects for the different segments of demand, specifically international buyers, domestic investors and domestic home owners.”
He added: “Overall city level house price inflation remains on track for 10% growth in 2015.”
As an online estate agent operating nationally, we welcome this news that so many of the UK’s greatest cities are experiencing such strong growth. Sellers will be in a stronger negotiating position across the country and are therefore more likely to achieve their asking price or above. With demand continuing to outstrip supply, the pool of buyers will also continue to grow.
A city becomes a city in the first place because it’s a place where many people are drawn to live and work. Cultural, sporting, leisure and food and drink opportunities abound, which is why places like London, Manchester, Liverpool, Edinburgh and Bristol have become such popular tourist attractions. The lure of the city isn’t going to disappear anytime soon – in fact, with more investment, regeneration projects and transport infrastructure, many of the UK's biggest cities are only going to experience even greater growth.
At Sarah Beeny’s Tepilo we always aim to get you the best possible price for your property. Our friendly and knowledgeable sales team are on hand to answer your queries 24/7, while you’ll also have a dedicated sales manager from the moment your property goes on to the market right through to completion.
To contact us please call 0844 3878377 or 01702 870878. If you would like to find out how much your property could be worth in the current marketplace, check out our free online instant valuation tool.