The UK city house price inflation is at 4.9 per cent, down from 6.6 per cent in August 2016, according to the latest UK House Price Index released by Hometrack.

Falling unemployment and record low mortgage rates are supporting demand as house prices in large regional cities continue to increase off a low base. Manchester is the fastest growing city (7.3 per cent), followed by Birmingham (6.7 per cent) and Edinburgh (6.6 per cent).

The upward momentum in house price growth across regional cities shows no sign of slowing. Real house price falls in London a drag on headline growth.

New analysis finds the value of housing across UK cities exceeding £3 trillion of which two thirds is accounted for by London.

London City, which covers London and its commuter hinterland, contains 39 per cent of the homes across the 20-city index but accounts for 66 per cent of the total value of housing (£2.0trn or £2,000bn). Birmingham (£152bn) and Manchester (£133bn) are the next highest value cities, together accounting for 10% the value of housing within UK cities. To put these numbers in context, the market capitalisation of FTSE 100 companies stands at £1.9trn while total mortgage debt is £1.322trn.